EarthFirst Canada Inc. - Sixth default status report and update


    CALGARY, Feb. 2 /CNW/ - EarthFirst Canada Inc. ("EarthFirst" or the
"Company") (TSX: EF, EF.WT) provides its sixth bi-weekly Default Status Report
under National Policy 12-203 - Cease Trade Orders for Continuous Disclosure
Defaults, pursuant to which EarthFirst announced that its financial statements
for the third quarter ended September 30, 2008 would not be filed by November
14, 2008. 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, and there are no additional defaults or
anticipated defaults subsequent to such announcement. Further, there have been
no additional material changes respecting EarthFirst and its affairs which
have not been previously disclosed or are not disclosed below. EarthFirst
intends to file its next Default Status Report on Monday, February 16, 2009.
    On January 28, 2009, the Court of Queen's Bench of Alberta, Judicial
Centre of Calgary (the "Court") granted an extension until February 27, 2009
of the initial Order granted on November 4, 2008 pursuant to which EarthFirst
was granted creditor protection under the Companies' Creditors Arrangement Act
(Canada) (the "CCAA"). The extension was supported by Ernst & Young Inc., the
Court-appointed Monitor of EarthFirst's CCAA process and was not objected to
by counsel to EarthFirst's secured creditor, WestLB AG.
    On November 4, 2008, EarthFirst and WestLB AG entered into a forbearance
agreement in respect of the indebtedness owed WestLB AG by EarthFirst
agreeing, among other things, that WestLB AG would be exempted from the stay
in the CCAA initial order but would forbear from enforcing its claim under the
negotiated terms of the agreement and to other matters relating to the conduct
of EarthFirst during the period of CCAA protection. This forbearance agreement
expired on January 4, 2009. Following negotiations between WestLB and
EarthFirst, WestLB agreed to extend the forbearance agreement until February
4, 2009 and EarthFirst will seek further extensions from WestLB as they are
    EarthFirst continues to work with certain bidders who have made offers to
purchase some or all of the Company and/or EarthFirst's Dokie I project and/or
certain of the wind turbines associated with the Dokie I project. EarthFirst
will continue to work with these bidders and other interested parties in an
effort to consummate a transaction with one of them by prior to the end of
February. If one of these transactions does not close, or if EarthFirst cannot
obtain some other funding prior to the end of February, 2009, EarthFirst will
not have sufficient funds to continue to operate.

    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 and the
timing of filing of EarthFirst's interim financial statements, management's
discussion and analysis and related CEO and CFO certifications for the third
quarter ended September 30, 2008. 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 not being able to
acquire required permits, delays in construction timing or turbine delivery,
not being able to complete a purchase and sale transaction or obtain financing
and 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 February 2, 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:

For further information: Brian Trypka, Chief Restructuring Officer,
EarthFirst Canada Inc., Tel: (403) 513-0780, Toll Free: 1-877-513-0777,
E-mail:; Derren Newell, VP, Finance and Chief
Financial Officer, EarthFirst Canada Inc., Tel: (403) 513-0766, Toll Free:
1-877-513-0777, E-Mail:

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