Maple Leaf Reforestation Inc. - Nursery production and Developments in Inner Mongolia, China



    (TSX-V: MPE)
    Last Close: July 25 2008 - $0.22
    Shares Issued: 56,482,327

    CALGARY, July 28 /CNW/ - Raymond Lai, President and CEO of Maple Leaf
Reforestation Inc. (TSX-V: MPE) ("Maple Leaf" or the "Company") is pleased to
report the following developments at the Company's facilities in Inner
Mongolia.

    Nursery, Inner Mongolia
    -----------------------
    Current inventory of the Inner Mongolia nursery and greenhouse facility
(the "Nursery") is 2.5 million Blue Spruce seedlings ready for sale, and an
additional 3 million seedlings of various types being germinated. These will
fulfill two sales contracts valued at $1.5 million RMB (approx. $227,000 CDN)
scheduled for delivery and payment in September. A second delivery contract
valued at $750,000 RMB (approx. $114,000 CDN) is under negotiation for
delivery in the fall of 2008.
    The Company has secured a landscaping and supply contract with Cixi
Huahai Plastics Co. Ltd. (Cixi), a public company listed on Shanghai Exchange,
located at Cixi, Zhejiang Province of China, valued at $1,167,000 RMB (approx.
$177,000 CDN). Under the contract, Maple Leaf will supply seedlings of various
types and full landscaping services to 100 mu (16 acres) of Cixi's new plant
facilities. The first shipment of seedlings will commence in the fall of this
year for a total $150,000 RMB (approx. $22,700 CDN). The balance will be
shipped and planted progressively.
    In addition, a Memorandum of Understanding ("MOU") with Cixi has been
signed for the next three phases of the project. The first two phases involve
landscaping the remaining 200 mu (32 acres) of Cixi's new plant facilities,
worth a total of $2.2 million RMB (approx. $333,000 CDN), and the third phase
involves setting up a joint venture with Cixi to cultivate Blue Spruce and
various types of Canadian seedlings in a new greenhouse and plantation
facility, worth a total of $5 million RMB (approx. $757,000 CDN). The total
value of the MOU and the above contract is approximately $10 million RMB
(approx. $1.5 million CDN).
    "We're very excited about the Company's immediate developments and sales.
Today, all outstanding contracts inherited from the Company's previous
management have expired, been fulfilled or cancelled, and Nursery operations
are proceeding on a 'clean slate' from this point on," President and CEO
Raymond Lai stated.

    $30 million RMB Grant Application, Inner Mongolia
    -------------------------------------------------
    In a separate significant development, the Company has submitted its
application for a government grant of $30 million RMB (approx. $4,500,000 CDN)
to the Overseas Chinese Investments Bureau in Inner Mongolia. The grant
application was submitted with the assistance and sponsorship of Liangcheng
County officials. When approved, 40% of the grant must be invested within
Liangcheng County, while the balance of 60% ($18 million RMB or
$2.7 million CDN) would be available to the Company for operational and
capital expenses.
    "This is a major development for our Inner Mongolian operations. The
sponsorship provided by the local government is an important endorsement for
the Company in the region. Funding of our application by the Overseas Chinese
Investments Bureau would be an official and prestigious endorsement of the
hard work and valuable contributions the Company has made in Liangcheng over
the past number of years." President and CEO Raymond Lai stated during his
most recent visit to Liangcheng County earlier this month.


    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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