Maple Leaf Announces Agreement with the Government of Liangcheng County Inner Mongolia, China



    
    (TSX-V: MPE)
    Last Close: August 18 2008 - $0.22
    Shares Issued: 56,482,327
    

    CALGARY, Aug. 19 /CNW/ - Raymond Lai, President and CEO of Maple Leaf
Reforestation Inc. (TSX-V: MPE) ("Maple Leaf" or the "Company") is pleased to
announce that an agreement has been reached with the Government of Liangcheng
County of Inner Mongolia, China (the "County") to set up a program to promote
its seedling sales to various counties in Inner Mongolia, as follows:

    
    1.  Initially, an Exhibition will be hosted at MPE's Inner Mongolia
        greenhouse from August 25th to September 1st, 2008 (the
        "Exhibition"). The Exhibition will be attended by forestry officials
        from Counties in the region to introduce them to MPE's Canadian tree
        growing technology and the various types of Canadian tree species
        available to them;

    2.  The County will purchase all of MPE's current stock of Chinese Pine,
        Scotts Pine and Jack Pine seedlings immediately after the Exhibition,
        totaling between 350,000 to 500,000 seedlings, valued at
        approximately $350,000RMB to $500,000RMB (CDN$53,000 to CDN$76,000);

    3.  The County will also enter a formal agreement with MPE following the
        Exhibition to purchase at least 50% of the greenhouse capacity
        commencing in 2009 (the "Purchase Agreement"). This will consist of a
        variety of seedlings as specified by the County. This represents
        sales of about 12 million seedlings a year, valued at approximately
        $12 million RMB (CDN$1.8 million). The formal details and duration of
        the Purchase Agreement will be finalized upon the completion of the
        Exhibition.
    

    Mr. Raymond Lai, President and CEO of Maple Leaf Reforestation Inc.
stated:
    "We are very excited about this firm commitment and support from the
Government of Liangcheng County. We are hopeful and optimistic that this may
lead to more purchase contacts with Chinese Government sectors. The Purchase
Agreement combined with the Cixi contract (see the news release dated July 25,
2008) means that the greenhouse capacity is fully committed for the 2009
growing cycles, representing revenue of about CDN $4 million to MPE. Along
with this major development, the Xinjiang Yellowhorn Tree Project and MPE's
Alfalfa Project are all on track. As a result, the Company's management is
looking at plans for future expansion much earlier than expected. Further news
releases will be made in the near future regarding other developments."

    About Maple Leaf Reforestation Inc.

    Maple Leaf is a Canadian Public Company operating a large-scale forest
nursery whose primary focus is growing and supplying value-added tree
seedlings and alfalfa feedstock as well as providing landscaping and nursery
products in China. In addition, the multi-faceted Xinjiang Yellowhorn tree
project will provide for the manufacture of biodiesel fuel, and various other
products.
    Reforestation has been identified as a critical step in managing China's
deeply troubling desertification and soil erosion problem. Maple Leaf
currently has millions of Canadian tree seedlings under cultivation at its
110,000 square foot greenhouse nursery facility located in Liangcheng County,
Inner Mongolia, China.
    As a wholly-owned foreign enterprise ("WOFE"), Maple Leaf controls 100%
of the direction and operations of the company in China and allows all
revenues generated from operations in China to flow back to Canada.

    
       Should you wish to receive Company news via email, please email
      catarina@chfir.com and specify "Maple Leaf Reforestation Inc."
             in the subject line or contact the Company directly.

    The TSX Venture Exchange does not accept responsibility for the adequacy
                         or accuracy of this release.
    

    Certain statements in this news release including 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.

    %SEDAR: 00022303E




For further information:

For further information: regarding Maple Leaf Reforestation Inc., visit
www.mlreforestation.com or contact: Maple Leaf Reforestation Inc., Raymond
Lai, President and CEO, Tel: (403) 668-7560, Fax: (403) 250-2534, Email:
rlai@mlreforestation.com; CHF Investor Relations - Toronto, Catarina
Cerqueira, Associate Account Manager, Tel: (416) 868-1079 ext. 251, Email:
catarina@chfir.com; Christopher Haldane, Account Manager, Tel: (416) 868-1079
ext. 237, Email: chris@chfir.com; CHF Investor Relations - Shanghai, Tel: +86
(0)21 28909034

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MAPLE LEAF REFORESTATION INC.

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