Press Release Source: Maple Leaf Reforestation Inc.
Maple Leaf Reforestation Inc. - Xinjiang project update
Tuesday October 23, 10:48 am ET
(TSX-V: MPE) Shares Issued: 53,781,980 Last Close: 10-22-2007 $1.55
CALGARY, Oct. 23 /CNW/ - Maple Leaf Reforestation Inc. ("Maple Leaf") is pleased to report that its Board of Directors have approved the Memorandum of Understanding ("M.O.U.") with Jilin Saar County of Xinjiang autonomous region of China ("Jilin") to establish a Bio Diesel Production Chain (the "project") for Shiny-Leaved Yellowhorn trees ("Yellowhorn"), as previously announced by Maple Leaf on October 16, 2007.
Maple Leaf will advance $370,000 ($3,000,000 RMB) to commence work on this project immediately. The investment in the first year of the project is estimated to be about $1.17 million (9,100,000 RMB). Initial funding will assist a new Xinjiang subsidiary of Maple Leaf to handle the project and prepare for the planting of 100,000 seedlings and purchase of 300,000 kilograms of Yellowhorn fruit for cooking oil extraction. The cooking oil extraction will be performed by a subcontracted processing plant. The Xinjiang subsidiary will also prepare applications to receive grants and subsidies from the Chinese Government in the next fiscal year.
Maple Leaf would also like to provide the following information regarding the project, as the Yellowhorn is a local Chinese species and western communities may not be familiar with its usage.
1. Each mu (0.17 acre) can grow 200 Yellowhorn trees; the 400,000 mu
provided by Jilin to Maple Leaf under the M.O.U. will be capable of
growing up to 80 million trees.
2. Each Yellowhorn can produce 2.5 to 3 kilograms of fruit after 3 years
and 5 to 7 kilograms of fruit after 5 years.
3. Each kilogram of fruit can yield 30% or 0.3 kilograms of Yellowhorn
oil during the extraction process.
4. Maple Leaf's proposed processing plant will be able to produce
100,000 tonnes or 100 million kilograms of either cooking oil or bio
diesel oil annually by using a chemical processing method.
5. The current market price of Yellowhorn fruit cooking oil is about
$40 RMB (Cdn $5.18) a kilogram. The Yellowhorn bio diesel oil is
about $5 RMB (Cdn
.65) a kilogram.
6. Yellowhorn oil has also been used in China for various medical
applications, including treatments for Arthritis, AIDS, Alzheimer's
etc.
Maple Leaf will be providing more relevant information and updates about this project on its website.
Maple Leaf's primary mission is to provide top quality, value added nursery seedlings and modern Canadian tree growing technology to assist China in solving its desertification problems. Maple Leaf currently has over 6,000,000 various types of seedlings under cultivation in its 110,000 square foot greenhouse.
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 therefrom. Subject to applicable law, Maple Leaf disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
All forward-looking statements contained in this document are expressly qualified by this cautionary statement. Further information about the factors affecting forward-looking statements is available in other disclosure documents of Maple Leaf which have been filed with Canadian provincial securities commissions and are available on
www.sedar.com.
For further information
regarding Maple Leaf Reforestation Inc., visit
www.mlreforestation.com or contact: Raymond Lai, President & CEO, Office (403) 668-7560, Fax: (403) 250-2534, E-mail
rlai@mlreforestation.com