(TSX-V: MPE) Last Close: November 28, 2008 - $0.14 Shares Issued: 56,511,127
CALGARY, Dec. 1 /CNW/ - Maple Leaf Reforestation Inc. (TSX-V-MPE) (the "Company" or "Maple Leaf") is pleased to announce the following updates from its Inner Mongolia greenhouse operations:
1. Maple Leaf has signed a supply contract with the Inner Mongolia
Baotou City Guyang County Forestry Station (a Baotou government
operated forestry station) to supply various types of pine seedlings
(the "Baotou Contract"). The Baotou Contract will be fulfilled by the
Company between March and June 2009 and is valued at $150,000 CDN
($750,000 RMB). A cash deposit of $6,000 CDN ($30,000 RMB) has been
received by the Company, which will go toward the total cost of the
Baotou Contract.
2. As reported in the Company's news release dated August 19, 2008,
Maple Leaf signed a supply contract with the Liangcheng County
Forestry Bureau of Inner Mongolia (the "Bureau"), to deliver various
types of pine seedlings (the "Liangcheng Contract"). Fulfillment of
the Liangcheng Contract will occur between November 2008 and October
2009 and the total value to the Company will be $448,000 CDN ($2.24
million RMB). Pine seedlings worth a total of $60,000 CDN ($300,000
RMB) have already been purchased by the Bureau and the funds have
been received by the Company (the "Initial Purchase"). However, the
seedlings that make up the Initial Purchase will not be shipped to
the Bureau, but will be cared for in Maple Leaf's greenhouse until
next Spring. The Initial Purchase is the first of a number of
expected purchases made by the Bureau, as pursuant to the Liangcheng
Contract it has committed to purchasing 12 million seedlings.
3. In connection with a supply contract with Cixi Huahai Plastics Co.
Ltd. ("Cixi") which was reported in the Company's news release dated
July 28, 2008 (the "Cixi Contract"), 50,000 blue spruce seedlings
have been shipped to Cixi as the first of a number of shipments (the
"Initial Shipment"). A cash deposit of $10,000 CDN ($50,000 RMB) has
been received by the Company. The next shipment of 100,000 seedlings
is scheduled to be sent at the beginning of December, 2008. The
Initial Shipment, with a value of $233,000 CDN ($1.17 million RMB),
is the first phase of a $2 million CDN ($10 million RMB) Memorandum
of Understanding signed with Cixi.
Raymond Lai, President and CEO, of Maple Leaf stated: "We are thrilled that after having expended so much effort developing this aspect of the Company's various and exciting business opportunities, we are finally seeing a steady flow of shipments and incoming revenue from our greenhouse operations. Our commitment has been to enhance 'shareholder value' by way of establishing consistent revenue streams. We are thankful that our Inner Mongolia greenhouse operation is succeeding in contributing to achieving this goal. We are continuing to develop our other various projects in order to establish several consistent and meaningful sources of revenue for the Company and its shareholders."
About Maple Leaf Reforestation Inc.
Maple Leaf is a Canadian company operating a large-scale forest nursery whose primary focus is growing value-added tree seedlings and alfalfa feedstock alongside landscaping and nursery products in China. In addition, the multi-faceted Xinjiang Yellowhorn tree project will provide for the manufacture of biodiesel fuel. Reforestation has been identified as a critical strategy to help manage China's troubling environmental issues, namely pollution and desertification. Maple Leaf currently has over 6 million varieties of seedlings under cultivation at its nursery facility that includes a 110,000-square foot greenhouse located in Liang Cheng, Inner Mongolia, China.
Maple Leaf is a wholly-owned foreign enterprise ("WOFE"), which allows Maple Leaf to control 100% of the direction and operations of the company in China while permitting the cash generated from operations in China to flow back to Canada.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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 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.