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.
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