AMG Bioenergy Resources Holdings Ltd.

AMG Bioenergy Resources Holdings Ltd.

April 06, 2011 16:39 ET

AMG Bioenergy Resources Holdings Ltd.: News Release

CALGARY, ALBERTA--(Marketwire - April 6, 2011) - AMG Bioenergy Resources Holdings Ltd. (the "Company") (TSX VENTURE:ABG), a Canadian publicly traded company, reports that the TSX Venture Exchange has consented to a 30 day extension of the time for the closing of its private placement (the "Private Placement"), which was announced in a news releases dated January 26, 2011. Consequently, the fundamental acquisition (the "Fundamental Acquisition"), also announced in the Company's January 26, 2011 news release, will also be delayed as it is conditional on completion of the Private Placement.

The delay in completing the private placement has largely been the result of delays relating to the consummation of the transactions contemplated by the Fundamental Acquisition. Specifically, the Company has encountered delays in the incorporation of a wholly owned subsidiary in China (the entity through which the Company intends to complete the Fundamental Acquisition). Such delays are the results of recent changes in China's regulatory regime relating to the incorporation of Chinese companies by foreign entities. Although such regulatory changes have delayed the incorporation process, management does not anticipate the changes to prevent the incorporation.

In addition, finalizing a form of definitive agreement with China Zhejiang Biodiesel co, Ltd., for the Fundamental Acquisition has taken longer than anticipated. However, the Company is still in the process of negotiating such agreement, and expects that a definitive agreement will be reached.

Summary of the Company

The Company has been active in research and development of bio-fuel feedstock and biodiesel conversion with the intent of developing a business producing jatropha as a bio-fuel feedstock in the People's Republic of China (the " PRC") and other parts of Asia.


Lee Shoong Lim, Managing Director

"This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements."

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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