Migao Corporation

Migao Corporation

August 29, 2007 07:19 ET

Migao Announces New Potassium Sulphate Facility in Southern China

TORONTO, ONTARIO--(Marketwire - Aug. 29, 2007) - Migao Corporation (TSX:MGO), a China-based leading specialty potash fertilizer producer, is pleased to announce the addition of its sixth location in China to produce specialty potash-based fertilizer. The new facility located in Zunyi, Guizhou Province will initially produce 40,000 tonnes of potassium sulphate in its first phase of construction.

Construction of the 40,000 tonne potassium sulphate facility is expected to be completed by the end of 2008. An additional 40,000 tonnes of potassium sulphate production capacity will be scheduled after the first phase is complete.

Not including the new capacity at Zunyi, expansion activity currently in progress includes two new 40,000 tonne potassium sulphate facilities in Shanghai and Changchun, and an expansion of 20,000 tonnes of potassium nitrate at Sichuan Migao. With the completion of the announced expansion projects, including the first phase of Zunyi, the annual combined production capacity of potassium nitrate and potassium sulphate will be in excess of 340,000 tonnes, representing an increase of 70 percent over the current production of 200,000 tonnes per year running at full capacity.

The new facility will sell to the local fruit, vegetable and tobacco industries. Tobacco, along with fruit and vegetables, is a high-value crop which is ideal for Migao's specialty potash based fertilizer. Guizhou Province is the second largest producer of tobacco in China.

Migao is also pleased to announce that it has received a purchase order, paid in advance, from China National Agricultural Means of Production Group Corporation (CNAMPGC), one of China's largest agricultural companies. The order is for 10,000 tonnes of potassium sulphate to be delivered from Migao's Liaoning facility in northeastern China. CNAMPGC's customers include cherry, apple, pear, and tomato farmers in nearby Shandong Province.

Migao Corporation, through its wholly owned subsidiaries, owns and operates fertilizer production plants in various strategic locations across China for the production and sale of specialty potash fertilizer (potassium nitrate and potassium sulphate) to the Chinese agricultural market. Migao Corporation is subject to, and complies with strict government regulations that govern safety, quality and environmental protection. Migao's Sichuan facility is ISO 14001 certified, an international environmental management standard. Please visit www.migaocorp.com for further information.

This press release contains statements that may constitute forward-looking statements, which may include financial and other projections, as well as statements regarding future plans, objectives or economic performance. Forward-looking information involves significant risks, assumptions, uncertainties and other factors that may cause actual future results or anticipated events to differ materially from those expressed or implied and accordingly, investors should not place undue reliance on any such forward-looking statements. Factors that could cause results to vary include those expressed in the Company's filings with Canadian securities regulatory authorities. All information presented herein should be read in conjunction with such filings.

Contact Information