Blue Horizon Industries Inc.
CNSX : BH

Blue Horizon Industries Inc.

November 14, 2011 05:00 ET

Blue Horizon Announces Termination of Kitimat Dismantling Contract

RED DEER, ALBERTA--(Marketwire - Nov. 14, 2011) - Blue Horizon Industries Inc. ("Blue Horizon" or the "Corporation") (CNSX:BH) announces that Ko Yo Development Co. Ltd. ("Ko Yo"), one of the parties to the previously announced amended dismantling agreement with Blue Horizon Energy Inc. ("BH Energy"), a wholly owned subsidiary of the Corporation, has given BH Energy notice of termination of the dismantling agreement. BH Energy has objected to the grounds for termination alleged by Ko Yo and intends to vigorously enforce its rights and remedies under the agreement and otherwise available at law against the contracting parties for amounts owing to date as well as further damages. Prior to being served the notice of termination Blue Horizon Contracting, BH Energy's wholly owned division was in the final stages of dismantling an ammonia plant and a methanol plant at Kitimat B. C. for Ko Yo and readying them to be shipped to China. From February 2011 to date, BH Energy has been paid and or credited by Ko Yo approximately USD $15.9 million of the $20.4 million contract.

Donald Allan, President and CEO of Blue Horizon, stated "Although we are disappointed that we will not be given the opportunity at Kitimat to finish the job for Ko Yo, who are experiencing significant logistical issues, we are now able to focus our attention on completing the bid process for a number of new high value dismantling contracts expected to be awarded for execution in 2012. Blue Horizon is a diverse industrial company with a main focus of building environmentally friendly bio-diesel plants initially in Canada and then around the world. Over and above advancing the strategic operational plan for our wholly owned subsidiary, Blue Horizon Bio-Diesel Inc., our wholly owned oil and gas division of BH Energy continues to make positive advancements with the frac of our horizontal well at Waskahigan scheduled for later this week and a multi-well horizontal development program being planned for our Normandville Oil Sands Property. Our 74% owned subsidiary company, Blue Horizon Mining Inc., is waiting on the assay core analysis from Loring Laboratories from the 5 hole drill program that was recently conducted on our Vermillion Forks Property which offsets the recently reopened Copper Mountain Mine. As well we are awaiting the interpretation of our 112 line-kilometres airborne geophysical survey and soil sampling program that were recently conducted on our Kodi Property, which is located immediately adjacent to the Second Relief Mine, which was in production until 1941 and was "the third largest gold-enriched skarn producer in the province of B. C. - BC MINFILE Number082FSW 187. We are very are optimistic about what the future holds for the Blue Horizon Group of companies."

About Blue Horizon

Blue Horizon Industries Inc. is a diversified industrial company with a four-fold strategic focus. The Corporation operates through three subsidiary companies; Blue Horizon Bio-Diesel Inc. – 100% owned ("BH Bio-Diesel"), Blue Horizon Energy Inc. – 100% owned ("Blue Horizon Energy") and Blue Horizon Mining Inc. - 74% owned ("BH Mining"). Blue Horizon Contracting ("BH Contracting") and BH Energy are wholly-owned divisions of Blue Horizon Energy. BH Contracting is currently in the process of bidding on a number of large scale dismantling contracts, while BH Energy is exploring for oil and gas in Western Canada having participated in 4 test wells in 2011. BH Mining is advancing two mining projects in British Columbia and BH Bio-Diesel has an exclusive sub-license agreement to build green bio-diesel plants in Canada.

Further information with respect to Blue Horizon can be obtained by visiting: www.blue-horizon.ca.

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 www.sedar.com. 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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