Hanfeng Evergreen Inc.

Hanfeng Evergreen Inc.

November 26, 2007 08:24 ET

Hanfeng Announces SCU Joint Venture With Anhui Linquan Industry Chemical Co., Ltd.

TORONTO, ONTARIO--(Marketwire - Nov. 26, 2007) - Hanfeng Evergreen Inc. (TSX:HF)("Hanfeng" or the "Company") today announced that it has entered into a 50/50 joint venture agreement with Anhui Linquan Industry Chemical Co., Ltd. ("Linquan") to build and operate a sulphur coated urea ("SCU") plant in Fuyang city, Anhui province in China. The plant will be constructed at Linquan's facility and construction will commence once all permits and licenses have been obtained. Phase I will call for the construction of a 50,000 tonne per annum SCU plant at a gross cost of approximately 50 million RMB or C$6.6 million, which will be paid equally by the joint venture partners. The plant can be expanded upon successful commissioning and operations to accommodate further demand in the local market.

"Anhui is one of the largest agricultural provinces in China and an excellent geographic choice for our second SCU joint venture" stated Xinduo Yu, Hanfeng's President and CEO. "Additionally, our partner Linquan is one of the most profitable chemical producers in Anhui province with more than 30 years of industry operating history and a well established customer base and distribution network."

The SCU facility will be constructed immediately next to Linquan's urea finish line at its Anhui facility, significantly reducing the capital costs associated with the construction and installation of required infrastructure such as buildings, warehouses, underground connections, and heating systems, which are already in place. Linquan will supply urea for the joint venture using their leading coal gasification technology, which was developed with government support. The SCU produced by the facility will be marketed primarily in Anhui province will provide an exceptional market for SCU as the primary crops include wheat, corn, and cotton, which are all high fertilizer consumption crops.

"Slow release fertilizer is the future of the China agriculture sector," said, Mr. Zhang Zhaozhen, President of Linquan, "SCU is a perfect fit for the local market in Anhui province. In addition, SCU blended fertilizers can provide upgrades to our conventional fertilizers. We are very pleased to joint venture with Hanfeng, the leader in slow release fertilizer of China and believe we will have a great future together."

About Anhui Linquan Industry Chemical Co., Ltd.

Linquan is a fully integrated producer of fertilizer, chemicals and electrical power with annual production capacity of 400,000 tonnes of ammonia, 500,000 tonnes of urea, 100,000 tonnes of compound fertilizers, 200,000 tonnes of ammonium bicarbonates, 100,000 tonnes of methanol alcohol, 70,000 tonnes of hydrogen peroxide, as well as ability to generate 300 million KWH per annum of electric power.

About Hanfeng Evergreen Inc.

Hanfeng is the largest producer of slow and controlled release fertilizers in China. It was the first company to introduce the concept of slow and controlled release fertilizers into China's agriculture market with its establishment of the first commercial scale slow-release fertilizer production in China. All production facilities are located in prime agricultural regions of China. The Company is headquartered in Toronto, Ontario and its shares trade on the Toronto Stock Exchange.

This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about Hanfeng's business are more fully discussed in the Company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada.

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