Maple Leaf Reforestation Inc. - Unni arranges preliminary Yellowhorn seed
orders

(TSX-V: MPE)

Last Close: July 2, 2010 - $0.13

Shares Issued: 63,036,627

CALGARY, July 5 /CNW/ - Maple Leaf Reforestation Inc. ("Maple Leaf") is pleased to provide an update on its exclusive Distribution Agreement for Yellowhorn seeds and seedlings with Unni Larsgaard Trust of Florida, U.S.A. ("Unni") - see news release dated March 16, 2010.

Unni has ordered 135 kilograms of Yellowhorn seeds and has also introduced Maple Leaf to an Australian-based plantation that has ordered 100 kilograms of seeds. These seeds are intended for demonstration purpose to promote Yellowhorn seedling sales. Total revenue from these orders will be $22,000 USD. Maple Leaf will be paid the full purchase price for the seed orders prior to shipping the orders from China.

Raymond Lai, President & C.E.O of Maple Leaf comments, "Since we announced our agreement with Unni its personnel have been working diligently on promoting the Yellowhorn tree to various farmers and plantation owners and attempting to secure Yellowhorn seed and seedling orders. To date, Unni has received an excellent response, which is partly illustrated by this recent order. The bio-fuel subsidy program being put in place by the U.S. government, known as the Biomass Crop Assistance Program ("BCAP") is seemingly in its final stages of being enacted. It is clear that most farmers and plantation owners are delaying their orders for seeds and seedlings until they are certain on the terms and implementation process of BCAP. We encourage shareholders to review materials on the U.S. Department of Agriculture's website relating to BCAP, and other materials available on the internet, in order to understand the potential magnitude of this program on our Yellowhorn operations and our relationship with Unni. These orders are very encouraging from our perspective, as it shows that farmers are keen on learning about the growth prospects of Yellowhorn trees. We anticipate that once BCAP is formally in place, farmers and plantation owners will be much more eager to purchase seedlings, which are more mature forms of Yellowhorn seeds and easier to handle than germinating the seeds. The germination process is always a difficult process even in China. It is our belief that the BCAP program will encourage farmers and plantation owners to get to the fruit-bearing phase of the growth cycle as soon as possible in order to receive the benefit of the subsidy. Unni's focus is on assisting farmers and plantation owners with applying for the government subsidy program, as such, we will be expecting orders for the much more expensive seedlings to begin and occur in large volumes once BCAP is formally in place and farmers and plantation owners are more informed about their ability to get fully subsidized for such purchases of Yellowhorn seedlings."

About Maple Leaf Reforestation Inc.

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

    
    1.  a large-scale forest nursery in Inner Mongolia which is focused on
        growing value-added tree seedlings and alfalfa feedstock alongside
        landscaping and nursery products;

    2.  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;

    3.  an organic fertilizer plant in the Hunan Province which will produce
        environmentally friendly bio-organic fertilizer; and

    4.  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 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.

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 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]