Maple Leaf to Build Organic Fertilizer Plant

CALGARY -- Maple Leaf Reforestation Inc (TSX-V-MPE) (the "Company" or "Maple Leaf") is pleased to announce that it has signed a Letter of Intent (LOI) with the China Eco Program Development & Advisory Corp ("CEPDA"), a China based environmental project development company, for the construction of an organic fertilizer plant. Under the agreement, which includes a special "Build, Operate and Transfer" ("BOT") term, CEPDA will ensure and facilitate all possible government tax incentives; land use amendments and agreements; all licensing applications, approvals and permits; feasibility studies, engineering reviews and supply contracts; forward purchase agreements and facility construction.

Maple Leaf will provide the capital to build the fertilizer plant and will have sole ownership of it. Under the special BOT arrangement, CEPDA will be contracted to provide technical support, operations and professional management services for the plant during the first year of operations. Mr. Casey Chan, VP of Corporate Development for Maple Leaf is spearheading this exciting new initiative and will finalize the formal agreement with CEPDA and local authorities in due course.

The company is working closely with local equipment manufacturers in the design and installation of production machinery, with a view to commencing construction in Febuary, 2009. The plant will be constructed in phases using a scaleable, modularly expandable model. The plant will initially have a production capacity of 30,000 metric tons, and the Company hopes to produce between 10,000-20,000 metric tons during each of the first two years of operation, primarily producing bio-organic fertilizers.

Maple Leaf's capital investment for the first two years of operation is projected at $500,000 Cdn ($2.5 million Rmb). With a current average selling price for bio-organic fertilizer of $240 Cdn ($1,200 Rmb) a ton, the total revenue generated during each of the first two years of operation could be as high as $5.5 million Cdn ($27 million Rmb). Upon successful completion of the initial two year phase, the modular plant will steadily be expanded, with plans of rapidly reaching a production capacity of 100,000 metric tons.

China is currently the largest consumer of fertilizers in the world, with more than twice the annual consumption of the USA and nearly ten times that of Canada. It is expected that China's fertilizer usage will continue to grow during the coming years, thus creating an exceptionally strong domestic market demand. The Chinese government is committed to the introduction of technologies and products that are beneficial to organic development, as opposed to the continual use of synthetic or chemical farm products.

Mr. Raymond Lai, President & CEO of Maple Leaf commented: "We are very excited about this opportunity. The agreement with CEPDA marks Maple Leaf's entry into the Hunan Province, the leading agricultural region in all of China. We are optimistic about the future growth potential of this project, and we believe it will enhance the company's growth strategy and expansion plans."

About Maple Leaf Reforestation Inc.

Maple Leaf is a Canadian company operating a large-scale forest nursery whose primary focus is growing value- added tree seedlings and alfalfa feedstock alongside landscaping and nursery products in China. In addition, the multi-faceted Xinjiang Yellowhorn tree project will provide for the manufacture of biodiesel fuel. Reforestation has been identified as a critical strategy to help manage China's troubling environmental issues, namely pollution and desertification. Maple Leaf currently has over 6 million varieties of seedlings under cultivation at its nursery facility that includes a 110,000-square foot greenhouse located in Liang Cheng, Inner Mongolia, China.

Maple Leaf is a wholly-owned foreign enterprise ("WOFE"), 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.

For further information regarding Maple Leaf Reforestation Inc., visit

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. 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

SOURCE: Maple Leaf Reforestation Inc.

Maple Leaf Reforestation Inc., Raymond Lai, Chairman, President & CEO, Tel: (403) 668-7560, Fax: (403) 250-2534, E-mail:

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