Migao Corporation
TSX : MGO

Migao Corporation

March 13, 2008 08:44 ET

Migao Corporation Completes $28 Million Bought Deal Financing

$3.75 Million Over-Allotment Option Exercised In Full

TORONTO, ONTARIO--(Marketwire - March 13, 2008) -

Not For Distribution To U.S Newswire Services Or For Dissemination In The United States

Migao Corporation (TSX:MGO), a China-based leading specialty potash fertilizer producer, is pleased to announce the successful closing today of its previously announced bought deal prospectus financing with a syndicate of underwriters co-led by CIBC World Markets Inc. and Canaccord Adams Inc., including GMP Securities L.P., Jennings Capital Inc., Clarus Securities Inc., and Research Capital Corporation.

By way of the prospectus, 3,593,750 common shares of Migao were issued at a price of $8.00 per common share for aggregate gross proceeds of $28,750,000 including the underwriters' fully exercised over-allotment option to purchase an additional 468,750 common shares. Net proceeds were $27,096,875 after the underwriters' commission but before other offering expenses.

"This financing, along with our existing cash and cash flow from operations will allow us to expedite our growth strategy," said Mr. Liu Guocai, Migao's CEO. "Our goal of building 500,000 tonnes of production capacity by the end of calendar 2009 should now be achieved ahead of schedule."

The Company currently produces 260,000 tonnes of combined potassium nitrate and potassium sulphate fertilizers per year. Ongoing expansion activity, including expansion activity recently announced as a result of the financing, includes a new 40,000 tonne per year potassium sulphate facility close to Shanghai, new 40,000 tonne per year potassium sulphate facilities at each of Tianjin and Zunyi, and an expansion of 60,000 tonnes of potassium sulphate at the existing Guangdong Migao facility. All of this expansion activity is scheduled to be completed before the end of calendar 2008. The total annual production rate will be 440,000 tonnes with the completion of the aforementioned expansion activity.

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 high value 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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