Migao Corporation

Migao Corporation

September 30, 2009 08:55 ET

Migao Secures Orders to Deliver 75,000 Tonnes of Specialty Fertilizers

- 100% of production capacity booked until December 2009 -

TORONTO, ONTARIO--(Marketwire - Sept. 30, 2009) - Migao Corporation (TSX:MGO), a China-based leading specialty fertilizer producer, today announced several contracts to deliver 75,000 tonnes of the Company's specialty potash fertilizers to high value crop customers across China.

Three large contracts comprise the majority of the 75,000 tonnes of Migao's potash based specialty fertilizers. The orders, to be delivered by the end of the year, are from recurring customers for tobacco as well as fruit and vegetable applications. Along with existing delivery commitments, Migao's core products are all sold forward until December 31, 2009.

"As expected, demand for our products has increased as the crops we serve prepare for the more intense fertilizer application seasons. This season goes all the way through to March for much of the country given the climate for the concentrated agricultural regions of China," said Mr. Liu Guocai, Chief Executive Officer of Migao. "A somewhat more stable potash price recently, combined with lower than ideal applications of fertilizer earlier this year has created an improved environment for Migao's fertilizers."

Migao's annual production capacity for its core potassium nitrate and potassium sulphate fertilizers is 320,000 tonnes. Major repairs and maintenance were completed earlier in the year and there are no other scheduled major shutdowns at any of the facilities in China for the balance of the calendar year.

About Migao

Since 2003, Migao Corporation, through its wholly owned subsidiaries, produces specialty potash fertilizer (potassium nitrate and potassium sulphate) at various strategic locations across China for China's agricultural market. Migao Corporation is subject to, and complies with strict government regulations that govern safety, quality and environmental protection. Please visit www.migaocorp.com for further information.

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