SOURCE: Sakha Enterprises Corporation

March 26, 2007 08:30 ET

Sakha Enterprises in Advanced Stages of Due Diligence Regarding Russian Timber Harvesting Acquisition for Yakutian Project

TORONTO -- (MARKET WIRE) -- March 26, 2007 -- Sakha Enterprises Corporation (PINKSHEETS: SAKH) is pleased to announce that due diligence and negotiations regarding the purchase of a timber harvesting company in the Russian Federation are advancing rapidly, with a view to completing an acquisition before yearend. Upon completion, Sakha projects an initial annual harvesting capacity of 500,000 m3 and a gradual increase over a five-year period to 5 million m3, which at current prices of $80 per cubic meter equates to some $400 million annual revenue at that 5-year production target.

The Yakutian Project

Through the impending acquisition of a Russian forest products company having extensive, largely untapped timber rights in the region, Sakha Enterprises intends to ramp up production rapidly to take advantage of the opportunity to export large volumes of timber to Asian markets, particularly China. Additional project details are available on the Company's website: The Company's Yakutia Project will emphasize sustainable development, long term planning and ecosystem diversity while maximizing timber recovery and productivity.

Acquisition a Key Step Forward

"The anticipated acquisition of an operating forest products company in the large, timber-rich Russian Federation will be the first major step toward realizing the Company's intention to become a significant player in the Russian timber harvesting industry in the foreseeable future." ... Franz Dobnik, President - Sakha Enterprises.

China Timber Demand to Rise

A recent report concludes that, with China's massive population and economic growth, the import demand for timber and other forest products is only set to rise. The study 'China's Wood, Trade and the Environment,' published recently, points out that a high proportion of China's wood imports come from Russia, Malaysia and Indonesia. With the globe's largest inventories of mature timber, Russia is expected to gain an increasing share of global timber markets in the years ahead.

In compliance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Sakha notes that statements contained in this announcement that are not historical facts may be forward-looking statements that are subject to a variety of risks and uncertainties. Accordingly, Sakha wishes to caution readers of this announcement that its future actual results may differ materially from those that any forward-looking statements may imply. There is no assurance the above-described events will be completed. There can be no assurance of the ability of the Company to achieve sales goals, obtain contracts or financing, consummate acquisitions or achieve profitability in the future.

Sakha Enterprises Corporation
1 First Canadian Place, Suite 350,
Toronto, Canada, M5X 1C1

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