Migao Corporation

Migao Corporation

November 12, 2007 07:30 ET

Migao Opens Expansion Facilities at Two Existing Locations

60,000 tonnes of new production to come on line before year end

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2007) - Migao Corporation (TSX:MGO), a leading producer of specialty potash fertilizers for the Chinese market, is pleased to report that two previously announced expansion plans have been completed and the facilities are operational.

A 20,000 tonne potassium nitrate expansion at the Sichuan Migao facility was completed in early October and production began on October 26th. Both the production schedule and the construction costs were in line with company expectations. The expanded production capacity brings the total capacity of the Sichuan Migao facility to 80,000 tonnes of potassium nitrate. All of the production from the 80,000 tonne potassium nitrate facility has been sold into the spring of 2008.

A new location, secured by Migao earlier in the year, has completed construction and has begun initial production as a 40,000 tonne per year potassium sulphate facility. Changchun Migao, located in Jilin Province in northeastern China was completed on October 18th, 2007. Full-production from the newly opened facility is scheduled to be phased in over an eight week period. The first 20,000 tonnes of production is scheduled to begin on November 21st, and the second 20,000 tonnes scheduled to come online on December 21st. Full-scale production from the 40,000 tonne expansion is ahead of schedule as it was originally expected to begin in the first quarter of 2008.

"As a leading supplier to a large and growing market we are continually faced with the challenge of increasing production to satisfy customer demand," said Mr. Liu Guocai, Migao's CEO. "Construction was accelerated at the Sichuan and Changchun sites to address the growing demand for our products. We have also recently announced two new locations that will add 80,000 tonnes of potassium sulphate capacity in 2008."

Migao's annual production capacity of combined potassium nitrate and potassium sulphate fertilizer will be 260,000 tonnes per year by the end of calendar 2007. Migao plans to build a new 40,000 tonne potassium sulphate facility in a new industrial park outside of Shanghai. The new facility is scheduled to be completed in early 2008. In total, with the recently announced Zunyi and Tianjin production facilities coming online next year, Migao will have 380,000 tonnes of capacity by the end of 2008.

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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