CALGARY, ALBERTA -- (Marketwired) -- 05/14/13 -- Maple Leaf Green World Inc. (TSX VENTURE: MGW) ("Maple Leaf") announces that further to its news release on March 13, 2013, it has signed a 5-year waste land reclamation contract with Ordos Lin Ze Bio-Tech Company Ltd. ("Lin Ze") of Inner Mongolia, China. The Contract involves 50,000 acres of wasteland that Lin Ze owns. Maple Leaf will conduct a test on Lin Ze's 1.5 acres of wasteland with its partners, Soil Works and High Brix. If it is proven successful that trees planted by Lin Ze survive on the 1.5 acres of land, Lin Ze has agreed to grant Maple Leaf a contract to for the whole 50,000 acres to conduct the soil reclamation at a price of US$50 per acre per year for 5 years. The total price will be US$2.5 million a year or US$12.5 million for 5 years. The price is fixed for the 1st year but may be adjusted for the next 4 years depending on the progress of the reclamation. Lin Ze also intends to grow fruit bearing corps on the 50,000 acres of land, and if it is successful, the financial benefits generated from it will be distributed amongst Lin Ze and Maple Leaf in a separate agreement. Both companies will bear their own cost for doing the test, but Lin Ze will provide full cooperation under Maple Leaf's guidance.
Lin Ze is a biotechnology company established in 2008 that specializes in growing special species of trees in semi desert wasteland. In addition to the 50,000 acres of wasteland that it owns, it also has a 6,700 sq metre high tech greenhouse that uses Israel's greenhouse technology. With the success of the soil reclamation project, Lin Ze intends to establish a long term relationship with Maple Leaf to jointly exploit all other wastelands totalling about 500,000 acres that Lin Ze has access to in Inner Mongolia. It is estimated there are approximately 73 million acres of wasteland in Inner Mongolia that are in the danger of turning into desert if no reclamation work is done to them in the near future. The new China government has emphasized again to increase their efforts and spending to counter such environmental disasters in all the northern regions including Inner Mongolia.
Assuming that the soil reclamation test is successful, Maple Leaf and its partners, Soil Works and High Brix, have agreed that Maple Leaf will earn 30% of the revenue for the 1st year, or US$750,000, without incurring any operating costs. The subsequent 4 years would be a minimum of 30% of the revenue for Maple Leaf, unless a new formula is agreed to among Maple Leaf, Soil Works and High Brix based on the progress of the project. Soil Works and High Brix are very confident that they can help to reclaim Lin Ze's lands given that the technology has already been successfully applied in areas experiencing similar desertification problems, including but not limited to Southern California, Florida and Kazakhstan. Besides Lin Ze, there are also other companies in Inner Mongolia that have been inquiring to Maple Leaf about the possibility of conducting the soil reclamation test on their lands. When the personnel from both Maple Leaf and Soil Works travel to Ordos to set up the test in the beginning of June, they will also visit these companies to discuss the possibilities of conducting the test with them at the same time.
Pig Testing Update
Further to its news release dated April 25, 2013, the pig-raising testing began on May 1, 2013. The surveillance cameras have been set up, however due to the remoteness of the pig farm and the lack of fiber optic cable connection for the internet, the IT technicians are still having problems with making the HD camera transmitting signal smooth and it may take a few days to resolve this problem. An update on the status of the video feed will be released when available.
About Maple Leaf Green World Inc.
Maple Leaf is a Canadian company that focuses in the environmental industry with 2 main operating arms:
1. Eco-Agriculture - it operates a large-scale nursery business in Inner Mongolia, China that is focused on growing value-added tree seedlings and nursery products that assist with anti-desertification.2. Renewable Energy - it is undertaking to commence a Yellowhorn seedling and tree operation which would provide valuable Yellowhorn seeds and ultimately oil from such seeds for the manufacture of bio-diesel fuel and premium healthy cooking oil.
Maple Leaf is a wholly-owned foreign enterprise which allows the Corporation 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.
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.
Maple Leaf maintains a forward-looking statement database which is reviewed by management on a regular basis to ensure that no material change has occurred with respect to such forecasts. The Company will publicly disclose such material changes to its forward-looking statements as soon as they are known to management.
May 13, 2013 - $0.015
Neither the TSX Venture Exchange or its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Maple Leaf Green World Inc.
Chairman, President & CEO
+1 (403) 668-7560
+1 (403) 250-2534 (FAX)