Clarification press release for Vitality

    The disclosure in this press release is at the request of the TSX Venture


    Trading Symbol: VPI

    VANCOUVER, Aug. 28 /CNW/ - On April 23, 2007, the Company publicly
announced that it had determined to establish a division to be called
"Vitality Fuels" to produce "alternative non-fossil fuels including ethanol,
bio-diesel and co-products such as animal feed and nutraceuticals" (the
"April 23, 2007 Release"). The April 23, 2007 Release went on to describe the
capacity of a production plant (the "Plant"), what the capital costs of the
Plant would be, the source of the capital, and the estimated revenues and
profits that the Plant would generate.
    The April 23, 2007 Release should be clarified as follows: at this time,
the plan to construct the Plant is in the embryonic stage. The Company has not
yet completed a sufficiently detailed feasibility study to determine whether
the Plant is economically feasible and therefore the Company has not yet made
a decision to pursue the construction of the Plant. The Company has no
executed sales agreements in place relating to the proposed Plant with the
entities noted in the April 23, 2007 Release or any other entity. The Company
has no executed financing agreements in place relating to the proposed Plant
and there are no commitments from or applications made by the Company for
financing to the United States Department of Agriculture ("USDA") or the
United States Department of Energy ("DOE"). Consolidated Firstfund Capital
Corp., a company related by common directors and common officers, will act as
agent for the Company in efforts to arrange for the financing of the proposed
Plant on a best efforts basis should the Company decide to proceed.
    The Company has not purchased land in connection with the construction of
the Plant or made any commitments to do so. It is, however, in the process of
selecting a suitable site. The Company has entered into discussions with
various engineering firms in conjunction with the construction of the proposed
Plant but no engineering has begun as yet and there are no executed agreements
with any engineering firm at this time. The April 23, 2007 Release describes
the significant capital costs involved, projected annual production volume,
annual revenues, annual earnings and tax credits. The source of the data in
the April 23, 2007 Release is from a report entitled "Ethanol Feasibility
Study for Vitality Fuels" (the "Study"), dated April 19, 2007. However, the
April 23, 2007 Release did not provide details of the risks, hurdles and
milestones involved in completing the Plant. These risks, hurdles and
milestones are many, and include, but are not limited to, (1) financing; (2)
the availability of feedstock, water, electrical power and natural gas; (3)
access to rail, all weather roads and personnel; (4) permits; (5) changes to
government regulations; (6) adverse sales; and (7) competition. There can be
no assurance whatsoever that the Company will be able to achieve its objective
of constructing and operating the Plant profitably. The Company's expected
operational target date of Spring 2009 as announced in the April 23, 2007
Release is now Spring 2010 should the Company decide to proceed.
    The Study is referenced in the April 23, 2007 Release as a "feasibility
study". The Study included a review of the availability of land, water, sewer,
power, natural gas, rail, permits and feedstock. It was an internally
commissioned study, not then intended to be used for any purpose other than to
demonstrate to the Company's management the potential feasibility of the
Plant. The author of the Study is Christopher Landrum, a business development
consultant. Mr. Landrum is currently completing his Bachelor of Business
Administration Degree and had no previous experience in the ethanol industry
when he began working on the Study. Mr. Landrum is an independent consultant
to the Company and is not a holder of any securities of the Company.
Mr. Landrum has previous experience in the POS, Motion Picture Media
Development and the Telecommunication industry segments over the past six
years. Mr. Landrum has had previous engagements with firms including P&G,
General Mills, Microsoft, Cisco, Pfizer, Albertsons, Kraft and Verizon.
Mr. Landrum compiled the information for inclusion in the Study from various
sources including, but not limited to, several qualified individuals with
backgrounds in various industries such as the ethanol industry,
nutraceuticals, agriculture, engineering, technology, real estate and finance.
The key assumptions used for the projections in the Study include the
following: a sales price of $2.30 per gallon of ethanol; a corn feedstock cost
of $3.80 per bushel; and the cost to build the proposed Plant and expenses to
operate the proposed Plant are similar to the construction costs and operating
expenses of known comparable plants located in the United States. There can be
no assurances that the prices used in the assumptions would remain constant
and/or be secured and there can be no assurances that the actual construction
costs and operating expenses would be comparable to other plants located in
the United States. The information was compiled over a period of four months
commencing in January 2007 and ending April 2007. On September 28, 2006, the
Company first announced a plan to add a division to investigate alternatives
for producing, marketing and distributing ethanol and other renewable fuel
products in North America. This plan was confirmed in the Company's news
release of December 29, 2006, when it announced that its efforts to enter the
ethanol business were being pursued.
    Based on the results of the Study, the Company determined to spend an
additional $200,000 on a more detailed and extensive feasibility study. The
purposes of the proposed $200,000 study are to provide the Company with a
definitive conclusion as to the economic viability of the proposed Plant and
to assist the Company in raising the necessary funds to build the proposed
Plant in Whatcom County, Washington, to present to potential investors and
lenders who will be able to rely upon this report in making an investment
decision. This type of study is sometimes referred to as a "bankable
feasibility study". This "bankable feasibility study" will contain very
detailed information about the proposed Plant, including location, design,
operation, timing of completion, budgets, permitting processes, marketing and
projections and the like, as well as the risks involved in embarking on such
an enterprise. Some of these risks include, but are not limited to, (1)
financing; (2) the availability of feedstock, water, electrical power and
natural gas; (3) access to rail, all weather roads and personnel; (4) permits;
(5) changes to government regulations; (6) adverse sales; and (7) competition.
    The Company confirms that should it in the future enter into a
transaction or series of transactions which may redirect the Company's
resources and change the nature of its business; such that they may constitute
a "Change of Business" ("COB") under TSX Venture Exchange ("Exchange") Policy
5.2, trading in the Company's shares will be halted and the Company will
thereafter issue a comprehensive news release in accordance with Policy 5.2.
Trading will then remain halted until the completion of the COB unless the
Exchange otherwise reinstates trading on compliance by the Company of the
requirements of Policy 5.2. The Company will work closely with the Exchange,
and by way of pre-filing consultation, should such a determination so arise.


    The oral presentation relating to the Plant made by a shareholder after
the annual general meeting held on July 17, 2007, which was also in writing
and made available for those that attended this presentation, included
disclosure on the capacity of the Plant, capital costs, source of capital,
estimated revenues and profits and milestones completed that do not comply
with Exchange Requirements regarding the contents of documents that describe
the activities or potential activities of TSX Venture Exchange listed
companies. These Exchange Requirements include disclosure of assumptions,
hypothesis, risks and conditions made concerning future oriented financial

    Forward-Looking Information Statements: This release may contain
forward-looking information based on management's expectations, estimates and
projections. All statements that address expectations or projections about the
future, including statements about the Company's strategy for growth, product
development, market position, expected expenditures and financial results are
forward-looking statements. These statements are not guarantees of future
performance and involve a significant number of risks, uncertainties and

    On behalf of the Board of

    "William N. Grant"
    William N. Grant, President & CEO

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

    %SEDAR: 00005856E

For further information:

For further information: Douglas Grant, CFO at (604) 683-6611 or

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