Maple Leaf Reforestation Inc. - Organic Fertilizer Plant Update and Alfalfa Shipments



    
    (TSX-V: MPE)
    Last Close: February 2, 2009 - $0.105
    Shares Issued: 56,511,127
    

    CALGARY, Feb. 2 /CNW/ -

    Organic Fertilizer Plant

    Maple Leaf Reforestation Inc. (TSX-V-MPE) (the "Company" or "Maple Leaf")
is pleased to announce that it has finalized the registration of its foreign
subsidiary, Hunan Changde Maple Leaf Fertilizer Co., Ltd., which will be
responsible for operating the Company's organic fertilizer plant located in
Jin City, Wuhan City, China (the "Plant"). The Plant occupies a 21 acre (130
mu) building. The Plant consists of four sections, a fermenting workshop, a
granulating workshop, a laboratory and a comparative testing base. The initial
production capacity of the Plant will be 20,000 metric tonnes per year and the
Plant has the potential to be upgraded to 100,000 metric tonnes per year. An
opening ceremony was held for the Plant which was attended by Mr. Raymond Lai,
President & CEO of Maple Leaf, by Mr. Kang Shaozhong, the Vice-Mayor and
representative of Jin City and by various other Government officials from the
Hunan Province. Mr. Shaozhong and the various environmental and agricultural
departments in the area have been very supportive of the Plant. The Plant is
scheduled to commence production in March 2009.
    The fertilizer to be produced at the Plant is known as Fenghua organic
fertilizer ("Fenghua"). Fenghua is a new type of environmentally friendly
fertilizer which uses pig manure, chaff and sewage sludge as raw materials. It
can make soil loose, prevent soil from consolidating, improve the nutrition
quality of soil, increase soil fertility and increase crop yield.
    Mr. Raymond Lai, President & CEO of Maple Leaf commented: "Maple Leaf is
excited to be commencing its diversification into this aspect of the Chinese
agricultural industry. Maple Leaf hopes that the Plant will bring great
environmental benefits to the area and its people."

    Alfalfa Shipments

    Maple Leaf's foreign subsidiary, Xinjiang Maple Leaf Forestry Sci-Tech
Co., recently shipped out 374.32 metric tonnes of alfalfa at an average price
of 2,250 Rmb ($397 Cdn) per tonne, for total revenue of 755,347 Rmb ($133,347
Cdn). The alfalfa was shipped in varying amounts to Hebei Kai Te Group Co.,
Ltd., Sichuan New Hope Group Co., Ltd. and Guangdong Wen's Foodstuffs Group
Co., Ltd.

    About Maple Leaf Reforestation Inc.

    Maple Leaf is a Canadian company operating four environmental related
projects in China:

    
    1.  a large-scale forest nursery in Inner Mongolia which is focused on
        growing value-added tree seedlings and alfalfa feedstock alongside
        landscaping and nursery products;

    2.  a multi-faceted Xinjiang Yellowhorn tree project which will provide
        for the manufacture of bio-diesel fuel and cooking oil and complement
        the fabrication of the ever demanding nutritious alfalfa feedstock;

    3.  an organic fertilizer plant in the Hunan Province which will produce
        environmentally friendly bio-organic fertilizer; and

    4.  a Flexi-Pipe distribution network to serve the oil and gas industry
        and other renewable energy industries.

    Maple Leaf is a wholly-owned foreign enterprise which allows Maple Leaf 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.

    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 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.
    More specifically, the Company has made the forward-looking statement in
this news release that the Plant is expected to commence production in March
2009. This is only the hope and expectation of the Company. Numerous risks
exist which could delay the commencement of production at the Plant. These
risks include mechanical difficulties with the machinery at the Plant, issues
surrounding personnel needed to operate the machinery at the plant and
unforeseen start-up costs arising that are beyond the present financial means
of the Company.
    Also, the Company has made the forward-looking statement in this news
release that the Plant has the potential to be upgraded to a production
capacity of 100,000 metric tonnes. Such an upgrade would require a substantial
capital contribution by the Company. Although it is the hope of the Company
that the Plant will reach this production capacity, its ability to fund such
an upgrade is dependent on its ability to raise capital. Alternatively, the
Company may fund such an upgrade through profits incurred as a result of
fertilizer sales, however at present, the Company does not have any such sales
secured. Furthermore, reaching such an elevated production capacity requires
smooth functioning of machinery within the Plant and obtaining the services of
additional personnel to operate the machinery at this greater functioning
capacity. There are numerous uncertainties associated with such an increase in
production capacity at the Plant including, but not limited to, the Company's
access to financial resources and its ability to secure sales contracts. As
such, a move to upgrading the Plant to a greater production capacity will be
dependent on the Company's success with selling fertilizer at lower production
levels.





For further information:

For further information: regarding Maple Leaf Reforestation Inc., visit
www.mlreforestation.com or contact: Maple Leaf Reforestation Inc., Raymond
Lai, Chairman, President & CEO, Tel: (403) 668-7560, Fax: (403) 250-2534,
E-mail: rlai@mlreforestation.com

Organization Profile

MAPLE LEAF REFORESTATION INC.

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