(TSX-V: MPE) Last Close: August 26 2008 - $0.20 Shares Issued: 56,482,327
CALGARY, Aug. 27 /CNW/ - Raymond Lai, President and CEO of Maple Leaf Reforestation Inc. (TSX-V: MPE) ("Maple Leaf" or the "Company") is pleased to announce the creation of a separate Wholly Owned Foreign Subsidiary (WOFE), Maple Leaf Energy China Ltd. Initially, this subsidiary will manage the development of the Company's Xinjiang Yellowhorn biofuel project, which is developing more rapidly than anticipated. Also along these same alternative energy lines, the Company is currently reviewing opportunities for involvement in other energy-related initiatives. All such further energy-related developments and projects of the Company will be managed by this subsidiary.
According to the Energy Information Administration (a U.S. Government Agency), China is the second largest consumer of energy after the U.S.A. Since 1991, energy consumption in China has grown at a compounded rate of 10% and is projected to continue growing at a rate of 5% per annum through 2030, almost twice the global growth rate. There is continued strong market demand for energy throughout China. The Chinese government is especially supportive of new products and technologies designed to increase the efficiency of the energy industry and decrease environmental damage caused by energy production and consumption.
Mr. Lai, President and CEO of Maple Leaf Reforestation Inc. stated, "Maple Leaf's diversification into the Chinese Energy Sector is very timely, given the continued and growing demand for energy throughout the country. The Company intends to offer technologically advanced, cost effective solutions and products to Chinese Oil & Gas Producers and Distributors. The combination of the Company's geographical knowledge, operating experience and significant regional support in China should lead to solid growth in this sector. Our proven ability to develop and market environmentally friendly and superior products should provide Maple Leaf with the competitive advantages required to be a true energy sector market leader in China. We are very excited about launching this initiative and confident in its success!"
About Maple Leaf Reforestation Inc.
Maple Leaf is a Canadian Public Company operating a large-scale forest nursery whose primary focus is growing and supplying value-added tree seedlings and alfalfa feedstock as well as providing landscaping and nursery products in China. In addition, the multi-faceted Xinjiang Yellowhorn tree project will provide for the manufacture of biodiesel fuel, and various other products.
Reforestation has been identified as a critical step in managing China's deeply troubling desertification and soil erosion problem. Maple Leaf currently has millions of Canadian tree seedlings under cultivation at its 110,000 square foot greenhouse nursery facility located in Liangcheng County, Inner Mongolia, China.
As a wholly-owned foreign enterprise ("WOFE"), Maple Leaf controls 100% of the direction and operations of the company in China and allows all revenues generated from operations in China to flow back to Canada.
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Certain statements in this news release including statements that may contain words such as "anticipate", "could", "expect", "seek", "may" "intend", "will", "believe", "should", "project", "forecast", "plan" and similar expressions, including the negatives thereof, (ii) statements that are based on current expectations and estimates about the markets in which Maple Leaf operates and (iii) statements of belief, intentions and expectations about developments, results and events that will or may occur in the future, constitute "forward-looking statements" and are based on certain assumptions and analysis made by Maple Leaf. Forward-looking statements in this news release include, but are not limited to, statements with respect to future capital expenditures, including the amount, nature and timing thereof; other development trends within the China's seedling industry; business strategy; expansion and growth of Maple Leaf's business and operations and other such matters. Such forward-looking statements are subject to important risks and uncertainties, which are difficult to predict and that may affect Maple Leaf's operations, including, but are not limited to: the impact of general economic conditions; industry conditions; government and regulatory developments; seedling product supply and demand; competition; and Maple Leaf's ability to attract and retain qualified personnel. Maple Leaf's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do transpire or occur, what benefits Maple Leaf will derive there from. Subject to applicable law, Maple Leaf disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
All forward-looking statements contained in this document are expressly qualified by this cautionary statement. Further information about the factors affecting forward-looking statements is available in other disclosure documents of Maple Leaf which have been filed with Canadian provincial securities commissions and are available on www.sedar.com.
%SEDAR: 00022303E