MPAC Industries Corporation

MPAC Industries Corporation

June 25, 2008 13:35 ET

MPAC Industries Corporation: Annual General Meeting and Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 25, 2008) - MPAC Industries Corporation ("MPAC" or the "Company") (TSX VENTURE:MPN) is pleased to provide its shareholders and the investment community with an update concerning the election of the new Board of Directors, the appointment of new Officers, and corporate developments.

With the positive results from the testing of the technology imported into Turkey by the Company, the Executive Directors recommended that, in concert with this positive progress, that the Board of Directors should be expanded to reflect the task ahead as the Company moves from its startup to its development growth phase.

To that end, the Company is pleased to advise that the shareholders, at its recent Annual General Meeting (the "AGM") have agreed to expand the Board of Directors to seven (7) and have elected the following to the 2008/09 Board of Directors:

- Blain Archer, CA is a new Director. Mr. Archer recently retired from the accounting firm that he co-founded and he will be chairing the Audit Committee;

- Richard Allegretto, PEng. who has been a Director since 2005. Mr. Allegretto will continue to be a Member of the Audit Committee;

- Barry Goff is a new Director with extensive experience in negotiations and he will be a Member of the Corporate Governance Committee;

- J. Richard W. Hall who has been a Director since 1999 and Chair of the Audit Committee;

- Firoz Lakhani who has been a Director since 2000. Mr. Lakhani will be a Member of the Corporate Governance Committee;

- Leslie E. Maerov, LLB who is a new Director. Mr. Maerov has practiced corporate and commercial law and is the CEO of a publicly traded company. Mr. Maerov will be a Member and Chair of the Corporate Governance Committee; and

- Dr. Richard W. Warren who has been a Director since 2004. Dr. Warren will continue as a Member of the Corporate Governance Committee.

After the AGM, and in recognition of MPAC moving from a concept venture to a revenue-generating development company, the new Board of Directors has decided to implement the following changes to the Executive:

- J. Richard W. Hall is assuming the role of President & Chief Executive Officer, on an interim basis, due to Firoz Lakhani's present health concerns and a family member's health condition;

- Leonard I. Goldsmith will continue in the role of Chief Financial Officer, despite stepping down from the Board of Directors this year; and

- Leslie E. Maerov will assume the role of Corporate Secretary.

The Company is presently recruiting for an Investor Relations Officer.

The Company has formally advised the manufacturer of the coal refining plant (the "Plant") crushing circuit that it has, contrary to the negotiated requirements, not met the specifications required to feed the balance of the Plant.

In order to achieve revenue generation from commercial production, MPAC has, after receiving engineering recommendations, formulated a plan to address the current constraints related primarily to the screening component of the Plant circuit.

The issue of the non-performance of the existing screens, as described in the
Company's News Release dated May 6, 2008 is anticipated to be resolved by
adopting recommendations submitted to the Company.

In that regard, two different Turkish engineers have visited the Soma Plant and have made recommendations to MPAC. Their suggestions centre on how to address the screening issue and a solution has been put forward that employs the use of new screens that are guaranteed by the manufacturer to effectively screen pre and post refined coal. Consequently, the Company is planning to work with this Turkish engineering company to have the screens built and tested on site using coal supplied by the mine owner ("E & E").

After operating the Plant with the retrofitted screens and testing the refined coal produced, the engineering firm, subject to finalizing any agreement with MPAC, has verbally agreed to have the screens capacity tested and guarantees a minimum yield before MPAC will agree to purchasing the new screen equipment.

Upon completing the re-structuring of MPAC's Board and the closing of the previously announced private placement, Company representatives will travel to Turkey to witness the trial run of the new screens. With the successful completion of the trial run of the new screens, MPAC has been advised that forty (40) tonnes per hour (per screen) of refined coal can be produced. With future cash flow, the Company can then address achieving its target of one hundred (100) tonnes per hour of refined coal.

Recently, the Environment and Forestry Minister in Turkey reaffirmed his country's determination to become a party to the Kyoto Protocol, which would create responsibilities for Turkey in 2012. The Company is of the view that this will create further opportunities under its business plan. According to TKI statistics, in 2005, Turkey imported 17.4 million tonnes of coal. Ten (10%) of this was petrocoke, which is high in sulphur. Clearly, this type of coal will have to be phased out under the Kyoto Protocol, putting further pressure on supplies of clean coal.

As the market for coal remains buoyant in Turkey, the Company has been approached by some large Turkish enterprises to consider working with them, on a collaborative basis, now that the Company's refining concept has been proven. As circumstances warrant, MPAC will evaluate these additional opportunities.

The demand for domestically refined coal has been further accentuated by the current high oil prices, which have a direct effect on the transportation component of imported coal, and therefore its subsequent end pricing to the domestic market in Turkey.

The Company has worked with due caution and diligence in its effort to arrive at its present position. Once the aforementioned screening issues are satisfactorily rectified, MPAC can, other things being equal, look forward to commencing commercial production and delivering the shareholders a reward for their patience.


J. Richard W. Hall, President and CEO

This News Release contains forward-looking statements, which are based on MPAC Industries Corporation 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 Industries Corporation undertakes no obligation to revise any forward-looking statements except as required by applicable securities laws.

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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