MAPLE LEAF DOUBLES GREENHOUSE CAPACITY AND SIGNS A 5-YEAR, 100 MILLION SEEDLING SALES CONTRACT WITH A GOVERNMENT ENTITY

(TSX-V: MPE)

Last Close: February 18, 2011 - $0.125                                     
Shares Issued: 80,104,090

CALGARY, Feb. 22 /CNW/ - Maple Leaf Reforestation Inc. ("Maple Leaf" or the "Corporation") is pleased to announce that continued demand for its seedlings in China has resulted in its current greenhouse capacity of 110,000 square feet and annual production of 16 million seedlings being outgrown.  As a result, Maple Leaf is undertaking a two year expansion plan to access or acquire two additional greenhouse facilities of similar size and scale to its current greenhouse.  In addition, due to the demand growth of Maple Leaf's seedlings, during this two year expansion it anticipates gradually increasing the selling price of its seedlings by approximately 30%.  The operational expansion will also offer numerous cost-cutting efficiencies and thus increase the margins on Maple Leaf's seedlings.

As its first phase of executing on its expansion plans, Maple Leaf has secured an 110,000 square foot greenhouse from the Liang Cheng County government, including 17 acres of adjacent useable land, for 10 years.  This facility will allow Maple Leaf to produce an additional 16 million seedlings annually.  The cost of leasing this facility will initially be a maximum of $45,000 Cdn (300,000 Rmb) annually, however the final lease price is still being negotiated and will be finalized when Raymond Lai, President & C.E.O. of Maple Leaf, visits Maple Leaf's China operations in March and meets with the Liang Cheng County officials.

As a result of doubling its greenhouse capacity, Maple Leaf has now been able to accept a 5-year, 100 million seedling sales contract with the Liang Cheng County Forestry Department.  The annual shipment details, including quantity and type of seedlings, and pricing of the seedlings, will be negotiated and agreed upon by the parties at the beginning of each calendar year.  The parties have agreed that for 2011, Liang Cheng will purchase 15 million Chinese and Scott Pine seedlings for a total cost of approximately $1.425 million Cdn (9.5 million Rmb).  Liang Cheng will pay a 20% deposit to Maple Leaf, $285,000 Cdn (1.9 million Rmb) before June 30, 2011, and an additional 40% will be paid, $570,000 Cdn (3.8 million Rmb) before December 1, 2011.  The balance owed to Maple Leaf for 2011 shipments will be due before May 1, 2012. Maple Leaf will be required to ship the purchased seedlings as they become available, with delivery of the 15 million seedlings to be completed before November 1, 2011.

Acreage Leasing Plans

Maple Leaf would also like to announce that it has secured two parcels of land from the Inner Mongolia government each comprised of approximately 330 acres (2,000 mu) for 30 to 70 years, at Maple Leaf's discretion.

Parcel #1 will be used to create a 1 million tree plantation utilizing Maple Leaf's own seedlings.  It is anticipated that after 3 years of cultivation these trees will reach an average height of 70 cm, which presently sell in the China market for approximately $4.50 to $7.50 (30 to 50 Rmb) per tree, depending on the type tree, thus making the value of the plantation at least $4.5 to $7.5 million Cdn (30 million to 50 million Rmb), assuming that the market prices for such trees stay at these levels.

Parcel #2 will be used to grow Yellowhorn seedlings and trees.  Eight acres (50 mu) will be used to grow approximately 500,000 Yellowhorn seedlings per year and the other 322 acres (1,950 mu) will be used to grow approximately 200,000 Yellowhorn trees.  The Yellowhorn seedlings will be used for re-sale to generate revenue.  The market price for Yellowhorn seedlings can vary dramatically depending on the current supply situation in the market and whether they are being sold overseas or locally in China.  Also, within 3 to 5 years of initial planting the Yellowhorn trees should produce approximately 400,000 kg of seeds.

These projects will require initial capital of approximately $2.2 million Cdn (14.7 million Rmb) and can be undertaken on a much larger scale if greater financing becomes available.  Maple Leaf will be focusing its ongoing fundraising efforts on securing financing to move forward with developing these parcels of land.

Issuance of Shares for Services

Maple Leaf would also like to announce that the disinterested directors of the Corporation have approved it executing agreements for shares for past services (the "Agreements") provided by Brad R. Docherty Professional Corporation (wholly owned by Brad R. Docherty) and Nice Accounting Service (wholly owned by Raymond Lai).  The sole beneficial owners of each of these entities are both directors and officers of the Corporation and both individuals abstained from voting on the approval of this matter by Maple Leaf's board.

Maple Leaf will issue an aggregate of 578,785 common shares in the capital of the Corporation (the "Common Shares") having a deemed issuance price of $0.10 per Common Share.  Brad R. Docherty Professional Corporation will be issued 316,285 Common Shares in partial satisfaction of past services provided to the Corporation.  Nice Accounting Service will be issued 262,500 Common Shares in full satisfaction of past services provided to the Corporation.

The transactions contemplated by the Agreements are subject to the approval of the TSX Venture Exchange (the "TSXV").  The Common Shares issued pursuant to the Agreements are subject to a four month hold period from the date that approval of the transactions contemplated by the Agreements is granted by the TSXV.

About Maple Leaf Reforestation Inc. 

Maple Leaf is a Canadian company operating various projects in China. Maple Leaf is a wholly-owned foreign enterprise which allows the Company 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. 

For further information regarding Maple Leaf Reforestation Inc., visit www.mlreforestation.com or contact:

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.

Maple Leaf maintains a forward-looking statement database which is reviewed by management on a regular basis to ensure that no material change has occurred with respect to such forecasts.  The Company will publicly disclose such material changes to its forward-looking statements as soon as they are known to management.

SOURCE Maple Leaf Reforestation Inc.

For further information:

Maple Leaf Reforestation Inc.
Raymond Lai, Chairman, President & CEO
Tel: +1 (403) 668-7560
Fax: +1 (403) 250-2534
E-mail: rlai@mlreforestation.com

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Maple Leaf Reforestation Inc.

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