EarthFirst Canada Inc. - Fourth Default Status Report



    
    /NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES WIRE
    SERVICES/
    

    CALGARY, Jan. 5 /CNW/ - EarthFirst Canada Inc. ("EarthFirst" or the
"Company") (TSX: EF, EF.WT) provides its fourth bi-weekly Default Status
Report under National Policy 12-203 - Cease Trade Orders for Continuous
Disclosure Defaults, pursuant to which EarthFirst announced that its financial
statements for the third quarter ended September 30, 2008 would not be filed
by November 14, 2008. EarthFirst reports that since announcing the original
Notice of Default on November 10, 2008 there have not been any material
changes to the information contained therein; nor any failure by EarthFirst to
fulfill its intentions as stated therein, and there are no additional defaults
or anticipated defaults subsequent to such announcement. Further, there have
been no additional material changes respecting EarthFirst and its affairs.
EarthFirst intends to file its next Default Status Report on Monday, January
19, 2009.
    On November 4, 2008, EarthFirst and WestLB AG entered into a forbearance
agreement in respect of the indebtedness owed WestLB AG by EarthFirst
agreeing, among other things, that WestLB AG would be exempted from the stay
in the CCAA initial order but would forbear from enforcing its claim under the
negotiated terms of the agreement and to other matters relating to the conduct
of EarthFirst during the period of CCAA protection. This forbearance agreement
expired on January 4, 2009. EarthFirst and WestLB AG are currently negotiating
an extension to this agreement and EarthFirst will provide further disclosure
of the result of these negotiations as information is known to the Company.

    Certain statements included in this news release constitute
"forward-looking information" within the meaning of applicable securities
legislation including the timing and continuance of CCAA protection and the
timing of filing of EarthFirst's interim financial statements, management's
discussion and analysis and related CEO and CFO certifications for the third
quarter ended September 30, 2008. Such forward-looking information involves
known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of EarthFirst to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking information.
    Specifically, some of the material risks include not being able to
acquire required permits, delays in construction timing or turbine delivery,
not being able to obtain financing and the uncertainty involved in the Court
proceedings and the implementation of a Plan under the CCAA.
    The forward-looking information contained in this news release represents
the expectations of EarthFirst as at January 5, 2009, and, accordingly, is
subject to change after such date. However, EarthFirst expressly disclaims any
intention or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise, except as
required by applicable law.





For further information:

For further information: Brian Trypka, Chief Restructuring Officer,
EarthFirst Canada Inc., Tel: (403) 513-0780, Toll Free: 1-877-513-0777,
E-mail: btrypka@earthfirstcanada.com; Derren Newell, VP, Finance and Chief
Financial Officer, EarthFirst Canada Inc., Tel: (403) 513-0766, Toll Free:
1-877-513-0777, E-Mail: dnewell@earthfirstcanada.com

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EARTHFIRST CANADA INC.

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