MPAC Industries Corporation

MPAC Industries Corporation

March 05, 2007 09:09 ET

MPAC Industries Corp.: Tokat/Zile Pilot Plant Testing Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 5, 2007) - MPAC Industries Corp. (the "Company" or "MPAC") (TSX VENTURE:MPN) is pleased to provide the following update to its activities in Turkey since the last News Release of February 7, 2007.

Over the course of the last number of months, the Company has been providing updates on the progress of the coal refining plant (the "Plant") located at Tokat/Zile (the "Coal Mine").

As the construction phase of the Plant is nearing completion, and in response to a number of enquiries from investors, the Company wishes to briefly address the testing of the Canadian technology (the "Technology") prior to its shipment to Turkey, as well as provide some guidance around the timeline for the testing of the pilot circuit at the Coal Mine and the commencement of production.

Prior to the shipment of the Technology, testing was performed on eight (8) separate coal samples delivered from Turkey throughout the past two (2) years. During this testing, the Canadian Technology manufacturer and the engineers engaged by the Company in Canada learned about the characteristics of Turkish coal and how it responds to the Technology. Throughout the coal testing phase, the manufacturer, the Canadian engineers, and the Company have come to recognize the most favorable coal types including the ash, shale, and sulphur content of these coals from Turkey. Although the Company is using the manufacturer's Technology in a new way in Turkey, the underlying concept is recognized and accepted as a valid method of refining coal. The alignment of the laboratory test results with the manufacturer's bench testing has successfully proved this out at the laboratory testing level. Further, the Technology is designed to be adaptable via sensitivity adjustments to reflect the characteristics of the input coal.

The Canadian equipment shipped to the Coal Mine has the production capability of processing a minimum of one hundred (100) tonnes per hour of input coal, according to the manufacturer.

As the construction of the Plant in Turkey is almost complete, the Company is now in a position to project when the circuit testing and the Technology balancing and optimization will occur.

Should the weather continue to cooperate, during the two weeks beginning March 19, 2007, representatives from the Company plan to attend the Plant site in Turkey and witness the preliminary circuit testing and subsequently, the Canadian Technology balancing and optimization. The circuit testing protocol will be under the direct supervision of the engineers in Turkey while the Canadian Technology balancing and optimization will be under the supervision of the Canadian manufacturer. The Canadian manufacturer's staff member did attend the Plant in December 2006 and gave instruction and training to the Turkish engineering staff along with two of the Company's executives, who attended as observers (see MPAC's News Release dated January 4, 2007).

Immediately following the above-mentioned circuit testing and optimization, the Company intends to address any outstanding issues that may come to light during testing and complete any peripheral modifications required in order for the Company to begin production according to its Business Plan.

MPAC's Business Plan calls for the continuous testing and upgrading / refinement of the production circuit during the ramp-up phase leading to full production. This is to ensure maximum refinement of the input coal from the Coal Mine. The Company is very cognizant of the fact that the end price realized by the Coal Mine owner for their refined coal is a function of its calorific value (Kcal/kg), and that this price moves exponentially with the calorific value. It is the intent of the Company, not only to convert the dormant asset of the Tokat / Zile coal deposit into monetary value, but also to maximize its economic value for the mine owner.

The other coal mines in Turkey that MPAC has secured under Memoranda of Understanding ("MOUs") (see News Release dated December 7, 2006) have been selected with these attributes in mind: that is, the run-of-mine, or input coal has a relatively high calorific value and high ash, shale, and sulphur content.

The management of the Company is now looking forward to the successful testing and optimization of the Plant/Technology and to advance to the phase of generating a revenue stream for its shareholders.

This news release contains forward-looking statements, which are based on MPAC's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. The forward-looking statements are not guarantees of future performances and undue reliance should not be placed on them. Actual results may differ materially as a result of any number of factors and uncertainties, many of which factors are beyond the Company's control. MPAC undertakes no obligation to revise any forward-looking statements except as required by applicable securities laws.


Firoz Lakhani, President & CEO

The TSX Venture Exchange neither approved nor disapproved the contents of this news release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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