Maple Leaf Forms Joint Venture with Canadian Partner to Build Solid Waste
Power Generation Plants in China

    
    Last Close: December 10, 2010 - $0.12
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                                 (TSX-V: MPE)
    

CALGARY, Dec. 13 /CNW/ - Maple Leaf Reforestation Inc (TSX-V-MPE) (the "Company" or "Maple Leaf") is pleased to announce that it has signed a Joint Venture Agreement with CF Lacey & Associates Inc. ("Lacey") of Victoria, B.C. (the "Agreement"), to construct and develop municipal solid waste ("MSW") operations in Inner Mongolia, China. Pursuant to the Agreement:

    
    -  Lacey and Maple Leaf will be 50/50 partners in the joint venture;

    -  Lacey will provide, on a best efforts basis, (i) $300,000 USD to the
       joint venture, to cover various start-up costs, and (ii) up to
       $60,000,000 USD to fund the construction and development of the MSW
       operations (the "Project Loan");

    -  Upon receipt of the Project Loan, Maple Leaf will receive a one-time
       fee equal to 1% of the Project Loan;

    -  Upon receipt of the Project Loan, Lacey will receive a one-time fee
       equal to 3.5% of the Project Loan;

    -  Maple Leaf will act as the Operator of the joint venture and will
       receive an operator's fee of $50,000 USD per month; and

    -  Lacey will act as the Lead Technical Developer of the joint venture
       and will receive a fee of $15,000 USD per month.
    

As a joint venture partner, Maple Leaf will:

    
    -  Liaise with all levels of the Chinese government to facilitate the
       completion of all necessary preliminary work in the most efficient
       fashion possible;

    -  Negotiate with all Chinese city officials and representatives of
       other levels of government to ensure that the Joint Venture Company
       will obtain the most favourable terms for taxes, land concessions,
       tipping fees, electrical rates, permit fees and interconnection
       charges;

    -  Assist with obtaining all the necessary permits and licenses for the
       Project;

    -  Act as the operator for the Project;

    -  Complete the necessary Environmental Report for the Project and
       ensure that the Project at all times complies with all local
       regulations and laws of China;

    -  Assist with identifying potential land sites for the Project that
       meet the waste to energy engineering requirements and subsequently
       assist with securing the chosen land site for the Project; and

    -  Assist with obtaining the necessary contract between the city and the
       Joint Venture Company to permit the Project to be carried out.
    

As a joint venture partner, Lacey will:

    
    -  Analyze, recommend and arrange for the supply of the best technology
       for the Project;

    -  Protect the Joint Venture Company's interest in the Project from any
       other technology providers by having such technology providers enter
       into Non-Competition and Non-Disclosure Agreements;

    -  Coordinate and furnish a technical and financial assessment for the
       Project;

    -  Provide a time-table for the Project that covers from its inception
       to the operational stage;

    -  Liaise with engineers to ensure timely construction of the Project;
       and

    -  Conduct market research to locate, and subsequently secure,
       purchasers for the biochar produced by the Project.
    

MSW Technology in China

The MSW industry in China is still in the first generation stage for first line cities and is completely lacking in the second and third line cities. The first generation MSW treatment technology uses mainly incineration, which generates high levels of pollution, smell and structures that present an eye sore for the surrounding environment.

The technology that the JV is pursuing is called Pyrolysis. This technology is very clean and produces both syngas for the production of electricity and biochar that can be used for soil enhancement. This technology uses only 30 tons of MSW to generate a net amount of 1.25 MW of electricity per hour, which the China National Power Grid Council currently purchases for approximately US$ 0.13 per KWh, plus subsidies are granted in this regard. With 30 tons of MSW, this technology also generates approximately 12,000 pounds of biochar, which is presently selling for US$260.00 per ton in North America. Given the population in China, and consequently the volume of MSW available to be converted, the amount of electricity and biochar that could be produced is substantial.

Maple Leaf and Lacey are currently reviewing various technology providers available to facilitate the joint venture operation. The utilized technology provider will be chosen based on economic considerations and suitability to the operating environment in China.

About CF Lacey & Associates Inc

CF Lacey & Associates Inc. has operated for 20 years assisting start up companies in all stages of development. The company has played a key role in making introductions to management groups, forming strategic alliances, developing business plans to secure financing and providing marketing analysis. CF Lacey previously partnered with Buildworks to facilitate the construction of Maple Leaf's greenhouse in Inner Mongolia. CF Lacey is also currently involved in developing and securing the financing for another waste to energy facility that is located outside of China.

Raymond Lai, President & C.E.O. of Maple Leaf comments, "With this joint venture we have taken another major step towards becoming a diversified renewable resource and eco-agricultural company in China. We are extremely excited about forming this relationship with CF Lacey and believe that the long-term positive impact on our operations could be significant as this type of project usually has an extended operating life of 25 to 30 years, and we do not have to expend any of our working capital to get the project going. Several cities in China have expressed interest to our group with respect to upgrading their MSW technologies and one city in particular, presently generating approximately 700 tons per day of MSW, is ready to start the preliminary study with us immediately. We hope that our new joint venture with CF Lacey will become the leading entity in China operating in the MSW industry."

The Joint Venture Agreement entered between Maple Leaf and CF Lacey has been filed on Sedar as a Material Document.

About Maple Leaf Reforestation Inc.

Maple Leaf is a Canadian company operating various projects in China. 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: regarding Maple Leaf Reforestation Inc., visit www.mlreforestation.com or contact: Maple Leaf Reforestation Inc., Raymond Lai, Chairman, President & CEO, Tel: [phone], Fax: [phone], E-mail: [email protected]