Hanfeng Evergreen Inc.
TSX : HF

Hanfeng Evergreen Inc.

February 17, 2009 08:00 ET

Hanfeng Evergreen Secures Additional Debt Funding

- Adds $28 million in capacity through renewed and new debt facilities - Receives provincial "Leading Enterprise Award" providing Hanfeng preferential banking status

TORONTO, ONTARIO--(Marketwire - Feb. 17, 2009) - Hanfeng Evergreen Inc. (Hanfeng) (TSX:HF), a leading provider of slow and controlled release fertilizers in China, today announced that it has renewed four debt facilities totalling RMB 65 million (C$12 million) provided by the Agricultural Bank of China and closed on a new RMB 90 million (C$16 million) debt facility from the Harbin Bank. Hanfeng now has access to, in aggregate, RMB 230 million (C$42 million) through a total of six debt facilities with China-based banks to support its working capital requirements. Certain fixed assets located at the Company's two wholly owned production sites in Jiangsu and Heilongjiang Provinces, China, secure the debt. Details of each facility are summarized in the following table:



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Loan Amount (RMB) Annualized
Principal Lender in millions Due Date Interest Rate
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Jiangsu Agricultural Bank of China
Hanfeng (Jiangyan Branch) 15.00 July 2009 4.05%
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Jiangsu Agricultural Bank of China
Hanfeng (Jiangyan Branch) 20.00 July 2009 4.05%
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Jiangsu Agricultural Bank of China
Hanfeng (Jiangyan Branch) 7.00 July 2009 4.05%
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Jiangsu Agricultural Bank of China
Hanfeng (Jiangyan Branch) 23.00 July 2009 4.05%
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Heilongjiang Bank of Harbin
Hanfeng (Xiaman Branch) 90.00 August 2009 5.84%
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Heilongjiang Shanghai Pudong Development
Hanfeng Bank (Harbin Branch) 75.00 September 2009 7.20%
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TOTAL 230.00
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Working capital loans in China have terms of not more than twelve months. Hanfeng expects that as the working capital loans come due they will be renewed.

Hanfeng will use the expanded debt facilities to support the continued expansion of its production base in China in order to address the growing demand for its low carbon, high efficiency, environmentally friendly fertilizers.

Leading Enterprise Award

Hanfeng was recently recognized by the Heilongjiang Agricultural Industrialization Committee (HAIC) as a Leading Enterprise in the Province of Heilongjiang. The designation is awarded to the top agricultural companies as determined by the HAIC on the basis the companies satisfy specific criteria including the quality, environmental friendliness, and market acceptance of its products, a high level of service and support to farmers, proficiency of quality control systems, superiority of the company's technology, as well as financial metrics including annual revenue and credit rating. The designation is reviewed annually and provides recipients with preferential banking status. Specifically, government owned banks will lend to the recipient of the award at bank prime without collateral security being requirement. As Hanfeng continues to expand its operations in China, it will explore new debt arrangements that can take advantage of the designation.

Hanfeng received the designation in its first year of eligibility. The Company's value-add products have consistently demonstrated their ability to enhance yield, reduce environmental damage caused by conventional fertilizers, and increase farmer's income, through numerous local and national field trials. The Company's success is founded in its internal R&D capabilities, which have allowed it to successfully develop and commercialize advanced, value-add fertilizer technology, and are consistent with the guidelines released by the Central Government of China in its eleventh, five-year plan.

Corporate Events

Tony Busseri, Hanfeng's Executive Vice President, is scheduled to participate in a panel discussion during the CIBC World Markets Institutional Investor Conference in Whistler, British Columbia on February 19, 2009. Mr Busseri will join senior executives from other TSX listed companies with operations in China for a discussion on the general business conditions in the country.

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.

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.

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