Migao Corporation

Migao Corporation

February 25, 2009 10:41 ET

Migao Announces Proceeds From Exercise of Warrants and New Loans Totaling $32 Million

TORONTO, ONTARIO--(Marketwire - Feb. 25, 2009) - Migao Corporation (TSX:MGO), a China-based leading specialty potash fertilizer producer, is pleased to announce that all warrants related to the February 22, 2007 private placement financing have been exercised, including underwriter compensation warrants, of which $13.7 million was exercised on February 23, 2009.

Migao is also pleased to announce that its wholly owned subsidiary, Liaoning Migao has obtained a loan of RMB 40 million from China Citic Bank, at an interest rate of approximately 4.8%, which includes an interest subsidy of RMB 1,045,600 from the Government. Migao's Guangdong subsidiary has also obtained a loan of RMB 60 million from the Agricultural Bank of China at an interest rate of approximately 4.8%, before a yet to be determined interest subsidy from the Government. The loans totaling RMB 100 million (approximately CDN $18 million), each have a term of one year and are eligible for renewal after one year.

"We are very pleased to see the shareholders who participated in our 2007 financing rewarded for their investment in Migao," said Mr. Liu Guocai, President and CEO of Migao. "The proceeds from the warrant exercise as well as the loans from two of China's leading banks further strengthen Migao's financial position as we continue to expand our production capacity to meet the continued strong demand for our specialty fertilizers. The loans are a part of a policy driven initiative by China's central government to fund agricultural businesses in China."

About Migao

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 fertilizers to China's agricultural market. Migao Corporation is subject to, and complies with strict government regulations that govern safety, quality and environmental protection. Please visit www.migaocorp.com for further information.

Annual Meeting

Migao Corporation will be hosting investors at its annual meeting of shareholders on Monday March 30, 2009 at 4:30pm at the King Edward Hotel, Toronto.

Caution Regarding Forward-Looking Statements

This news release may include forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario) and other provincial securities laws in Canada. These forward-looking statements include, among others, statements with respect to our objectives and goals, and strategies to achieve those objectives and goals, as well as statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective", "continue" (or the negative or grammatical variations thereof), and words and expressions of similar meaning, are intended to identify forward-looking statements.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, which give rise to the possibility that predictions, forecasts, projections and other forward-looking statements will not be achieved. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. We caution readers not to place undue reliance on these statements as a number of important factors, many of which are beyond our control, could cause actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to: risks related to raw materials; execution of the business plan; dependence on key personnel; key relationships; dependence on key customers; dependence on key suppliers; competition; market factors and volatility of commodity prices; environmental risks and hazards; operating risks; proprietary rights; infrastructure; future capital requirements; technical substitution; exchange rate fluctuation; insurance; foreign operations; weather conditions and natural disasters; control by management; seasonality; dividends; conflicts of interest; state ownership; government sector intervention; foreign investment; repatriation of profit and currency conversion; tax; shareholders' rights and enforcement of judgements; developing legal system; protection of intellectual property rights; permits and business licenses; appropriation; and availability of land. Should one or more of these factors materialize, or should our estimates or underlying assumptions prove incorrect, actual results, performance or achievements may vary materially from those described in forward-looking statements.

We caution that the foregoing list of important factors that may affect our future results is not exhaustive. When reviewing our forward-looking statements, readers should carefully consider the foregoing factors and other uncertainties and potential events. Additional information about factors that may cause actual results to differ materially from expectations, and about material factors or assumptions applied in making forward-looking statements, may be found under the "Risk Factors" sections in our Annual Information Form and annual MD&A and elsewhere in our filings with Canadian securities regulatory authorities. Except as required by Canadian securities laws, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf; such statements speak only as of the date made. We cannot assure readers that actual results will be consistent with these forward-looking statements, and the differences may be material. The forward-looking statements included herein are expressly qualified in their entirety by this cautionary language.

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