Blue Horizon Industries Inc.

September 26, 2011 13:10 ET

Blue Horizon Announces Amendments To Kitimat Dismantling Contract

CALGARY, ALBERTA--(Marketwire - Sept. 26, 2011) - Blue Horizon Industries Inc. ("Blue Horizon" or the "Corporation") (CNSX:BH) announced today that its wholly-owned subsidiary, Blue Horizon Energy Inc. ("BH Energy"), has executed the Dismantling Agreement – Amendment (03) ("the Amending Agreement") on behalf of its wholly owned division, Blue Horizon Contracting.

On February 14, 2011 BH Energy entered into a Dismantling Agreement ("the Agreement") with Ko Yo Development Co. Ltd., a Hong Kong incorporated company ("KoYo") and Guangan Lotusan Natural Gas Chemicals Co. Ltd., a corporation incorporated under the laws of the Peoples Republic of China ("GLN"). The Agreement provided for BH Energy to dismantle an ammonia plant and a methanol plant at Kitimat and ready them to be shipped to China by December 31, 2011. Under the Agreement BH Energy was to be paid by KoYo/GLN a total of USD $17.5 million. From February 2011 to date, BH Energy has been paid and or credited with a total of USD $11.5 million. The Amending Agreement provides for BH Energy to be paid a total of USD $20.6 million plus miscellaneous expenses. The purpose of the Amending Agreement is to allow BH Contracting to substantially complete the dismantling of the Kitimat plants by November 30, 2011. All previous agreements entered into between BH Energy and KoYo/GLN with the exception of the original February 8, 2011 agreement have now been cancelled and KoYo has agreed to pay the balance owing of USD $8,836,124 in 4 equal payments of USD $2,209,031 commencing September 30, 2011. BH Contracting will also benefit from the sale of a portion of the residual scrap material that will not be shipped to China as well as receive ownership to a number of steel structures and cranes which will be trucked to Bruderheim Alberta where Blue Horizon's wholly owned subsidiary, Blue Horizon Bio-Diesel Inc. is in the process of building a green bio-diesel pilot plant.

Donald Allan, President and CEO of Blue Horizon, stated "With the USD $20.4 million renegotiated terms now in place our Kitimat Dismantling Project is over 13 times larger than our USD $1.5 million Kathleen Dismantling Project that Blue Horizon Contracting completed in 2010. The Kathleen Dismantling Project involved dismantling an ammonia plant located in Northern Alberta and preparing it for shipment to Argentina. We were able to initially win the contract at Kitimat and subsequently increase the scope of the Agreement by demonstrating to our Chinese clients that we have the management and operational expertise to execute decommissioning jobs ahead of schedule as well as with no loss time due to accidents. Blue Horizon is now leveraging its track record to bid on a number of new high value dismantling contracts expected to be awarded for execution in 2012."

About Blue Horizon

Blue Horizon Industries Inc. is a diversified industrial company with a four-fold strategic focus. The Corporation operates through two wholly owned subsidiary companies; Blue Horizon Energy Inc. ("BH Energy") and Blue Horizon Bio-Diesel Inc. ("BH Bio-Diesel") as well as through a 74% owned subsidiary, Blue Horizon Mining Inc. (BH Mining"). Blue Horizon Contracting ("BH Contracting") is a wholly-owned division of BH Energy. BH Contracting secures and executes on dismantling contracts of existing industrial plants and related facilities. BH Energy is exploring for oil and gas in Western Canada and BH Mining is advancing two grass roots mining projects in British Columbia. BH Bio-Diesel has an Exclusive sub-license agreement to build green bio-diesel refineries in Canada. The parent company, Blue Horizon Industries Inc.'s shares are listed to trade on the Canadian National Stock Exchange ("CNSX") under the symbol BH. To obtain a quote Click Here: BH Quote

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Neither the Canadian National Stock Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian National Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

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