EarthFirst Canada Inc. - 22nd Default Status Report and update

    
    /NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES WIRE
    SERVICES/
    

CALGARY , Sept. 14 /CNW/ - EarthFirst Canada Inc. ("EarthFirst" or the "Company") provides its 22nd bi-weekly Default Status Report under National Policy 12-203 - Cease Trade Orders for Continuous Disclosure Defaults, pursuant to which EarthFirst announced that its: (a) financial statements and management's discussion and analysis for the third quarter ended September 30, 2008 would not be filed by November 14, 2008 ; (b) its annual audited financial statements, management's discussion and analysis, annual information form and related CEO and CFO certifications for the year ended December 31, 2008 would not be filed by March 31, 2009 ; (c) its financial statements and management's discussion and analysis for the first quarter ended March 31, 2009 would not be filed by May 15, 2009 ; and (d) its financial statement and management's discussion and analysis for the second quarter ended June 30, 2009 would not be filed by August 15, 2009 (collectively the "Required Filings").

On September 14, 2009 , EarthFirst received from the Court of Queen's Bench of Alberta, Judicial Centre of Calgary (the "Court") a number of orders relating to its ongoing CCAA process. The Court has, among other things:

    
        1.    granted an extension until October 30, 2009 of the Initial
              Order granted on November 4, 2008 pursuant to which EarthFirst
              was granted protection under the CCAA. The extension was
              supported by Ernst & Young Inc., the Court appointed Monitor of
              EarthFirst's CCAA process;
        2.    approved certain amendments to the previously announced Asset
              Purchase Agreement ("APA") which among other things reduces the
              consideration under the APA by $15.5 million, $11.7 million of
              which is to be funded through EarthFirst's existing cash
              reserves; and
        3.    approved a Plan of Arrangement concerning and affecting
              EarthFirst pursuant to which EarthFirst will seek creditor
              approval at a meeting scheduled to be held on October 14, 2009.
    

Additional amendments to the APA are currently being negotiated and will be brought forward to the Court for approval on September 22, 2009 .

EarthFirst reports that since announcing the original Notice of Default on November 10, 2008 there have not been any material changes to the information contained therein; nor any failure by EarthFirst to fulfill its intentions as stated therein. Further, there have been no additional material changes respecting EarthFirst and its affairs which have not been previously disclosed or disclosed in this press release. EarthFirst intends to file its next Default Status Report on Monday, September 28, 2009 .

Certain statements included in this news release constitute "forward-looking information" within the meaning of applicable securities legislation including the timing and continuance of CCAA protection. Such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of EarthFirst to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Specifically, some of the material risks include the uncertainty involved in the Court proceedings and the implementation of a Plan under the CCAA.

The forward-looking information contained in this news release represents the expectations of EarthFirst as at September 14, 2009 , and, accordingly, is subject to change after such date. However, EarthFirst expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.

For further information: Brian Trypka, Chief Restructuring Officer, EarthFirst Canada Inc., Tel: [phone], Toll Free: [phone], E-mail: [email protected]; Derren Newell, VP, Finance and Chief Financial Officer, EarthFirst Canada Inc., Tel: [phone], Toll Free: [phone], E-mail: [email protected]