EarthFirst Canada Inc. receives an extension of its CCAA Order



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

    CALGARY, June 26 /CNW/ - EarthFirst Canada Inc. ("EarthFirst" or the
"Company") received today from the Court of Queen's Bench of Alberta, Judicial
Centre of Calgary (the "Court") an extension until July 24, 2009 of the
initial Order granted on November 4, 2008 pursuant to which EarthFirst was
granted creditor protection under the CCAA. The extension was supported by
Ernst & Young Inc., the Court-appointed Monitor of EarthFirst's CCAA process
and was not objected to by counsel to EarthFirst's secured creditor, WestLB
AG.
    In addition, EarthFirst, sought and received court approval for an
amending agreement to the previously announced conditional Asset Purchase
Agreement for the Dokie Project (the "APA"). The APA provided that a number of
conditions precedent were to be satisfied or waived in the sole discretion of
the Purchaser under the APA (the "Purchaser") on or before July 6, 2009 (with
notice of any waiver or non-satisfaction of conditions having been provided by
July 8, 2009) (the "45 Day Conditions"). In addition, the Dokie APA requires
EarthFirst to file its plan of arrangement with the Court by July 8, 2009. The
Purchaser and EarthFirst have experienced various delays since the granting of
the Sale Approval and Vesting Order (Dokie Project) by the court on May 29,
2009, with the result that the Purchaser and EarthFirst have agreed that the
date for satisfaction or waiver of the 45 Day Conditions and the date for
EarthFirst to file its plan of arrangement with the Court ought to be extended
by two weeks.
    The Court also approved the previously announced sale agreement dated
June 11, 2009 with Avro Wind Energy Inc. ("Avro") to sell a majority of its
remaining development assets. These assets include EarthFirst's development
projects in British Columbia (excluding the Dokie Project), the Benchlands
Wind Power Project in Saskatchewan, and the Bonavista Wind Power Project in
Newfoundland. As a result of these transactions, EarthFirst will receive funds
of approximately $860,000 by way of purchase price consideration and release
of deposits held in support of a letter of credit plus applicable sales tax.
The completion of the first part of the Avro sale occurred on June 26, 2009
for approximately half the purchased assets and the remainder is anticipated
to close on or about July 15, 2009.

    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. 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
satisfy the 45 Day Conditions or the other conditions required to close the
transactions contemplated by the APA 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 June 26, 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: (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:
(877) 513-0777, E-mail: dnewell@earthfirstcanada.com

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EARTHFIRST CANADA INC.

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