Migao Corporation

Migao Corporation

September 24, 2007 08:00 ET

Migao Announces New Potassium Sulphate Facility in Tianjin, China

7th location to add 80,000 tonnes of capacity

TORONTO, ONTARIO--(Marketwire - Sept. 24, 2007) - Migao Corporation (TSX:MGO), a China-based leading specialty potash fertilizer producer, is pleased to announce the addition of its seventh location in China to produce specialty potash-based fertilizer. The new facility, the second announced in as many months is located in Tianjin, China and when operating at full capacity will produce 80,000 tonnes of potassium sulphate annually.

Once all announced construction projects are completed, Migao will be producing approximately 420,000 tonnes of its specialty potash-based fertilizers annually. This represents an increase of 110% more than current production capacity. Currently, Migao is producing at a rate of 200,000 tonnes per year with the balance of production capacity coming online as various construction projects are completed. Specifically, in October, Migao's potassium sulphate facility in Changchun will open, followed by a potassium nitrate expansion at Sichuan Migao later this year. Shanghai Migao's potassium sulphate facility is scheduled to open in early 2008, followed by the recently announced 80,000 tonne Zunyi potassium sulphate facility. The first 40,000 tonnes of potassium sulphate production capacity at Tianjin is scheduled to be completed in late 2008. An additional 40,000 tonnes of potassium sulphate production capacity will be scheduled for construction at Tianjin after the first phase is complete.

"Availability of land continues to be a challenge for companies in China, however our focused efforts internally as well as our successful track record and strong government support have allowed us to fast-track our expansion plans," said Mr. Liu Guocai, President and CEO of Migao Corporation. "The demand for fertilizer products continues to be very strong in China and Migao's goal of becoming the Country's largest supplier of specialty potash fertilizers is another step closer with the addition of our Tianjin location."

Tianjin's potassium sulphate production is expected to fulfill some of the demand from local fruit and vegetable crops. As a co-product of potassium sulphate, the new facility will produce hydrochloric acid, which is expected to be sold to Tianjin's oil refining industry. Tianjin is a coastal city situated approximately 130km from Beijing. It is one of China's major industrial port cities with a population in excess of 10 million.

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 China's 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.

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