Migao Corporation

Migao Corporation

April 17, 2007 08:32 ET

Migao Corporation's Changchun Potassium Sulphate Facility to be Completed Ahead of Schedule

TORONTO, ONTARIO--(CCNMatthews - April 17, 2007) - Migao Corporation (TSX VENTURE:MGO), a leading producer of specialty potash fertilizers for the Chinese market, is pleased to report that construction of its recently announced potassium sulphate fertilizer production facility in Changchun, Jilin Province, China will be completed by the end of 2007, ahead of the previously stated first quarter of 2008.

"The Changchun region is rapidly developing and Migao has received expedited approvals and co-operation from local government and industry partners," said Mr. Liu Guocai, Migao's President and CEO. "There is great and growing demand in Changchun for both potassium sulphate and its byproduct, hydrochloric acid."

Construction of Changchun Migao is scheduled to be completed by the end of 2007. The facility will produce 40,000 tonnes of potassium sulphate fertilizer per year for local high-value crop customers. A further expansion of an additional 40,000 tonnes per year of potassium sulphate production can be accommodated at Changchun Migao given the amount of property secured by Migao.

This wholly owned subsidiary is Migao's fifth production facility in China and when fully operational, will also be producing as a byproduct of potassium sulphate production, approximately 50,000 tonnes of hydrochloric acid annually. It is expected that the hydrochloric acid will be sold primarily to a local company for use in corn processing. Migao's Changchun facility is located in China's large corn growing region.

Migao is also constructing a similar 40,000-tonne potassium sulphate facility close to Shanghai. The Shanghai facility is scheduled to be completed by the end of 2007. After completing current construction projects, Migao will be producing approximately 300,000 tonnes of potash-based fertilizers on an annual basis.

Migao Corporation, through its wholly owned subsidiaries, owns and operates fertilizer production plants in strategic locations throughout China for the production and sale of potassium nitrate and potassium sulphate to the Chinese domestic agricultural market. Shares of Migao Corporation trade on the TSX Venture Exchange under the symbol 'MGO'.

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.

The TSX Venture Exchange has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release.

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