Maple Leaf Signs Letter of Intent Regarding Whitebark Pine Technology



    (TSX-V: MPE)

    
    Last Close: August 11, 2009 - $0.11
    Shares Issued: 61,586,627
    

    CALGARY, Aug. 11 /CNW/ - Maple Leaf Reforestation Inc. ("Maple Leaf" or
the "Company") is pleased to announce that it has signed a Letter of Intent
with Astro-Wood Bio-Engineering Development Co. Ltd. ("Astro-Wood") of Shanxi,
China to jointly develop Whitebark Pine trees (the "LOI").
    Astro-Wood is a national company specialized in seedling cultivation,
landscaping, research and development for new species of agro-forestry, fungi
nursing and livestock breeding. Astro-Wood has a registered capital of
approximately $250 million Cdn (1.6 billion Rmb) and its total assets are
valued at approximately $470 million Cdn (3 billion Rmb).
    The Whitebark Pine (Pine Bungeana) is a very precious and popular pine
species. It is known to grow under very harsh conditions and is thus used
extensively for landscaping and reforesting in Northern China. The seedling
for this type of pine is very difficult to cultivate, normally taking three
years to grow to the height of 20 cm. Maple Leaf's greenhouse has been able to
develop a technology however, that allows for the development of Whitebark
Pine seedlings to 20 cm height in just seven months (the "Technology"). Maple
Leaf has already grown approximately 25,000 seedlings for approximately 6
months using the Technology and the majority of these seedlings have grown to
approximately 20 cm height. Based on the success of this experimental sample,
Maple Leaf and Astro-Wood have agreed to sign the LOI to jointly develop
Whitebark Pine trees under the following conditions:

    
    1.  Maple Leaf will contribute the Technology and its facilities towards
        the development of Whitebark Pine trees;
    2.  Astro-Wood will contribute its capital and plantation facilities
        towards the development of Whitebark Pine trees;
    3.  Astro-Wood agrees to purchase a minimum of 5 million Whitebark Pine
        seedlings per year from Maple Leaf upon the successful completion of
        the experimental sample and will place all of its Whitebark Pine
        seedling orders with Maple Leaf once Maple Leaf is able to supply the
        quantity that Astro-Wood needs;
    4.  An application will be submitted to patent the Technology and if
        granted will be jointly owned by Astro-Wood and Maple Leaf; and
    5.  The future application of the Technology will be developed and funded
        by Astro-Wood and Maple Leaf will be responsible for the cultivation
        of the seedlings.
    

    Maple Leaf is expected to sell the Whitebark Pine seedlings at a minimum
price of approximately $0.19 Cdn (1.20 Rmb) per seedling, providing a total
value of a minimum of approximately $950,000 Cdn (6 million Rmb) for the
guaranteed 5 million per year seedling order. Astro-Wood presently requires
approximately 30 million Whitebark Pine trees per year to meet its needs,
which means that if Maple Leaf can expand its cultivation capacity, then the
value of the Whitebark Pine seedlings purchased by Astro-Wood annually could
increase to as much as approximately $5.7 million Cdn (36 million Rmb).
    Raymond Lai, President and CEO of Maple Leaf, who recently traveled to
Shanxi, China to attend the signing of the Letter of Intent between Astro-Wood
and Maple Leaf, comments: "We are extremely pleased with the progress made by
the Inner Mongolia Operation. If this Letter of Intent turns into contract
orders, hopefully by September, our seedling orders will exceed our greenhouse
capacity. As a result we will inevitably need to access additional greenhouse
space next year, which we believe is a very significant operational
achievement. We are very excited about partnering with Astro-Wood given the
vast foot-print that it has in China's agricultural industry."

    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 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.
    The Letter of Intent referred to in this news release is not a binding
agreement and presently does not place obligations on either of the parties
referred to in this news release. As such, the projected revenues that have
been quoted in this news release are not guaranteed to be received by the
Company. Receipt of such revenues depends on the successful finalization of
the experimental sample and subsequent to this, the finalization of purchase
contracts with Astro-Wood. Such purchase contracts, if entered, are not
guaranteed to be equivalent to the size projected in this news release. The
actual size of any purchase contracts that may be entered will be dependent
upon the needs of Astro-Wood and Maple Leaf's ability to fulfill these needs.
Although Maple Leaf states in this news release that it will inevitably have
to access additional greenhouse space, there is no guarantee that such
greenhouse space will be available, whether by lease or construction, and
accessing such additional space will be greatly dependent on Maple Leaf's
ability to fund the costs associated with such an expansion. There is no
guarantee that Maple Leaf will have or be able to access the funding required
to access additional greenhouse space.
    Maple Leaf maintains a forward-looking statement database which is
reviewed by management on a regular basis to ensure that no material change
has occurred with respect to such forecasts. The Company will publicly
disclose such material changes to its forward-looking statements as soon as
they are known to management.




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

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MAPLE LEAF REFORESTATION INC.

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