MPAC Industries Corporation
TSX VENTURE : MPN

MPAC Industries Corporation

August 23, 2006 21:54 ET

MPAC Industries Corporation: Tokat Coal Mine MOU to Proceed to Definitive Agreement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 23, 2006) - MPAC Industries Corp. (the "Company" or "MPAC") (TSX VENTURE:MPN) is pleased to announce that it has completed its preliminary due diligence on the Tokat/Zile coal mine (the "Coal Mine"), located in the Black Sea region of Anatolia, Turkey.

On March 30, 2006 MPAC signed a memorandum of understanding (the "MOU") to enter into a coal refining agreement to upgrade the coal at the Coal Mine subject to the Company completing its due diligence, including the further testing of the coal from the Coal Mine.

Various samples tested from the Coal Mine indicate that the coal has a very high ash content which not only reduces its calorific value, but also causes an environmental problem in its use as a fuel.

The Company has carried out and is carrying out various tests to ensure that it is able to deploy its coal refining process to reduce the ash content of the coal and increase its calorific value as an energy source.

MPAC is now proceeding to convert the MOU into a definitive agreement in accordance with the MOU.

The Tokat/Zile Coal Mine is located 420 km from Ankara and is producing coal on a limited basis for domestic use. The Coal Mine is an open pit mine and is reported by its owner to contain approximately 30 million tons of coal.

The Coal Mine is easily accessible by road. In addition to the domestic market for coal in the vicinity of the Coal Mine, within 100 km of the Coal Mine are four operating cement factories and four sugar factories - all using coal as an energy source.

In addition to the Tokat/Zile Coal Mine, the Company is proceeding with its due diligence on the other coal mines that it has under memoranda of understanding as announced in its news release of April 18th, 2006.

ON BEHALF OF THE BOARD OF DIRECTORS:

Firoz Lakhani, President and CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • MPAC Industries Corporation
    Richard Hall
    Investor Relations
    (604) 644-2244