Maple Leaf Enters Exclusive Agency Agreement to Sell Rights to Patented
Ethanol Production Technologies in China

    
    Last Close: October 13, 2010 - $0.14
    Shares Issued: 68,508,502
    

TSX-V: MPE

CALGARY, Oct. 14 /CNW/ - Maple Leaf Reforestation Inc. (TSX-V: MPE) (the "Company" or "Maple Leaf") is pleased to announce that it has signed an exclusive Agency Agreement with a private U.S. ethanol technology patent holder (the "U.S. Group") permitting it to exclusively market and sell its products and patents that produce cellulosic ethanol as well as certain rights to a patented process for creating enzymes, in China. Maple Leaf will receive a 5% commission for any amounts paid to the U.S. Group by Chinese entities introduced to the U.S. Group by Maple Leaf.

Cellulosic ethanol is part of a worldwide move toward second generation bio-fuel using agricultural and forest waste as feedstocks, but enzymes are required to break cellulose down into sugars, which are converted into ethanol. The U.S. Group's process generates more ethanol per ton of feedstock than competitors, and requires far less water, heat and pressure. The U.S. Group has an advantage of producing low cost enzymes for cellulosic ethanol production. Bio-fuel made using this patented process is competitive with ordinary gasoline and costs less than $1/gallon to produce (ethanol selling price in China is presently US$1.65/gallon). The U.S. Group's cellulosic ethanol produces 84 percent less greenhouse gas than fossil fuels even after accounting for the energy needed to produce and transport the feedstock. It generates 7.7 times more energy than is required to produce it. Corn ethanol typically generates 1.3 times more energy than is used producing it.

China, the third-largest ethanol producer after the United States and Brazil, has announced a 5 trillion Yuan (US$736 billion) investment plan on clean energy in the next decade, aiming to lift the non-fossil fuel component of its supply to 15 percent of its total primary energy demand by 2020, from under 8 percent last year. It also targets a reduction in carbon intensity, or the amount of carbon produced per unit of GDP, of between 40 and 45 percent by 2020, as compared to 2005. China produces between 600 million and 800 million tons of agricultural waste every year, only a small amount of which is recycled and used to generate power. China plans to blend 10 million tons of ethanol into gasoline by 2020, but its current annual production rate is about 1.35 million tons, mostly using corn and wheat as feedstocks. In addressing its rapidly expanding demand for fuel, China, as the world's leading developing economy, has the opportunity to become a global leader in promoting and applying sustainable energy technologies and strategies, including the production and use of cellulosic ethanol.

Perry Lee, VP of Biofuel and Waste Oil Project Development of Maple Leaf, has been designated to head this initiative for the Company. Mr. Lee has prior experience in the bio-fuel industry and a background in chemical engineering. He will be instrumental in laying the groundwork for a successful product launch in China. Mr. Lee comments, "We are very excited to have been selected by the U.S. Group to act as its exclusive agent in China. The U.S. Group has been approached by numerous ethanol producers around the world that want to utilize its industry leading technologies. We hope to be able to facilitate the implementation of the U.S. Group's technologies into China. We are looking forward to visiting the U.S. Group's demo project in the near term to better grasp its processes and thus be better able to market its products to the China ethanol industry."

    
    About Maple Leaf Reforestation Inc.

    Maple Leaf is a Canadian company operating five environmental related
projects in China:

    1.  a large-scale forest nursery in Inner Mongolia which is focused on
        growing value-added tree seedlings and nursery products;
    2.  an alfalfa feedstock operation that produced 10,000 tons in 2009 with
        great expansion potential and opportunity to build an alfalfa crop
        cake processing plant;
    3.  a multi-faceted Xinjiang Yellowhorn tree project which will provide
        for the manufacture of bio-diesel fuel and cooking oil and complement
        the fabrication of the ever demanding nutritious alfalfa feedstock;
    4.  an organic fertilizer plant in the Hunan Province which will produce
        environmentally friendly bio-organic fertilizer; and
    5.  a Flexi-Pipe distribution network to serve the oil and gas industry
        and other renewable energy industries.
    

Maple Leaf is a wholly-owned foreign enterprise which allows the Company 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.

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.

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.

For further information: visit www.mlreforestation.com; or contact Raymond Lai, Chairman, President & CEO, Tel: [phone], Fax: [phone], E-mail: [email protected]