Maple Leaf Signs 2.4 Million Rmb Seedlings Distribution Agreement

    
    (TSX-V: MPE)

    Last Close: January 11, 2010 - $0.12
    Shares Issued: 61,836,627
    

CALGARY , Jan. 12 /CNW/ - Maple Leaf Reforestation Inc. (" Maple Leaf " or the "Company") is pleased to announce that its wholly owned Inner Mongolia Greenhouse has signed a distribution agreement with Liangcheng Dadi Forestry Co., Ltd. (the "Sales Agent") to sell a total of 5.3 million seedlings between December 2009 and December 2010 (the "Distribution Agreement").

Pursuant to the Distribution Agreement:

    
    -  The Sales Agent will sell 5.3 million seedlings during the one year
       term;
    -  The 5.3 million seedlings will include 1.6 million Evergreen Pine,
       1.4 million Blue Spruce and 2.3 million Chinese Pine;
    -  The purchase price per seedling is $0.07 Cdn (0.45 Rmb) for total
       revenue of approximately $370,000 Cdn (2.40 million Rmb);
    -  Maple Leaf has received a down payment of approximately $39,000 Cdn
       (250,000 Rmb); and
    -  The Sales Agent will pay a second down payment of approximately
       $31,000 Cdn (200,000 Rmb) on or before April 1, 2010.
    

Pursuant to the Distribution Agreement, the Sales Agent has guaranteed that it will sell all 5.3 million seedlings for proceeds of approximately $370,000 Cdn (2.4 million Rmb). If the Sales Agent fails to achieve these sales then it has agreed to make up the shortfall in proceeds within 10 days of the expiry date of the Distribution Agreement. Subsequent to receiving the approximately $70,000 Cdn (450,000 Rmb) deposits, the Sales Agent will pay proceeds to Maple Leaf as it is received from purchasers.

Delayed Shipments

As disclosed in the Company's Management Discussion & Analysis filed on www.sedar.com on December 29, 2009 (the "MD&A"), shipments totalling $131,700 Cdn (829,000 Rmb), which includes $110,000 Cdn (693,000 Rmb) to Shanxi Xinzhou Yangbai Town Iron Mine and $21,700 Cdn (136,752 Rmb) to Kekouban Village Agricultural Cooperative of Yulin Town, which were previously announced as sales in September 2009 , have been postponed to spring 2010 due to severe drought conditions in those regions.

In addition, as disclosed in the MD&A, shipment of the 4 million Caragana Intermedia and 1 million Hedysarum Mongolicum Turcz, which Maple Leaf is cultivating for the Inner Mongolia Forestry Department ("IMFD"), has been postponed to spring 2010 due to severe drought conditions prevailing in Inner Mongolia . IMFD has agreed to compensate the Company for the cost of maintaining the seedlings in the Greenhouse for the winter.

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: 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]