Hanfeng Evergreen Inc.

Hanfeng Evergreen Inc.

May 19, 2009 08:00 ET

Hanfeng and Agrium Complete Option Exercise for China SCU Projects

TORONTO, ONTARIO--(Marketwire - May 19, 2009) - Hanfeng Evergreen Inc. (Hanfeng) (TSX:HF), a leading provider of slow and controlled release fertilizers in China, today announced that the completion of the previously announced option exercise by Agrium Inc. (Agrium) to purchase 50 percent of the outstanding shares of Hanfeng Slow-Release Fertilizer (Canada) Co. Ltd. (Holdco), a Hanfeng subsidiary that develops new SCU projects and joint venture opportunities in China. Total consideration paid by Agrium to exercise the option was CDN$2,201,239, which represented fifty percent of Holdco's investment in SCU projects in China from April 18, 2007 until the exercise date, plus a commercial rate of interest. During the specified period, Holdco established one 50,000 metric tonne per annum plant in partnership with a local urea producer under a joint venture structure in Shanxi, China.

The option was granted to Agrium in conjunction with Agrium granting Hanfeng a sulphur coated urea (SCU) licence for use in China and was included as part of the agreement in which Agrium became a 19.6 percent shareholder of Hanfeng in April 2007.

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 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. www.hanfengevergreen.com

About Agrium Inc.

Agrium Inc. is a major retail supplier of agricultural products and services in both North and South America and a leading global producer and marketer of agricultural nutrients and industrial products. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled release fertilizers and micronutrients. Agrium's strategy is to grow through incremental expansion of its existing operations and acquisitions as well as the development, commercialization and marketing of new products and international opportunities. Contact us at: http://www.agrium.com/.

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. All amounts are stated in Canadian dollars except for noted otherwise.

Contact Information

  • Spinnaker Capital Markets
    Kevin O'Connor
    Investor Relations
    (416) 962-3300
    Email: ko@spinnakercmi.com