(TSX-V: MPE)
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Last Close: 07-26-2007 $0.89
CALGARY, July 27 /CNW/ - Maple Leaf Reforestation Inc. ("Maple Leaf") is pleased to announce that it has signed a 1 year sales contract with Liangcheng County State-owned Dongpeng Nursery, PRC ("Liangcheng Dongpeng"), to purchase a variety of Maple Leaf's tree seedlings for $5.8 million RMB (approximately $820,000 Canadian). Liangcheng Dongpeng is located in Yongxing Town of Liangcheng County, Inner Mongolia, and is a government owned company in the forestry business.
Under the sales contract, Liangcheng Dongpeng will purchase approximately 5.7 million seedlings in 3 separate deliveries beginning in September 2007 through to August 2008. The 5.7 million seedlings purchased will include a variety of existing seedlings currently under cultivation within Maple Leaf's nursery facilities. The seedlings are varieties of Colorado Spruce (2.95 million), Chinese Pine (645,000), Jack Pine (1.08 million), Scots Pine (690,000) and Northern China Larch (375,000). The total value of each delivery will be approximately $1.93 million RMB (approximately $273,000 Canadian). Liangcheng Dongpeng may increase the quantity of the subsequent deliveries in the early spring of 2008 if it is satisfied with the survival and growth rate of the 1st delivery. Liangcheng Dongpeng is required to make a cash payment to Maple Leaf prior to the shipment of each delivery of seedlings.
Raymond Lai, President and Chief Executive Officer of Maple Leaf, is very pleased that Maple Leaf has signed its 1st sales contract with a Chinese provincial government. Mr. Lai stated, "I am very excited that we have finally opened the door to the huge Chinese Government's forestry sector; once we have demonstrated the good quality of our seedlings I am very confident that more Government sales contracts will be forthcoming."
Maple Leaf's primary mission is to provide top quality, value added nursery seedlings and modern Canadian tree growing technology to assist China in solving its desertification problems. Maple Leaf currently has over 6,000,000 various types of seedlings under cultivation in our 110,000 square foot greenhouse.
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Certain statements in this news release including (i) 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 therefrom. 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.