Maple Leaf Reforestation Inc. (TSX VENTURE:MPE) ("Maple Leaf") is pleased to
announce that is has entered a Yellowhorn Project Collaboration Agreement for
the exclusive distribution of Yellowhorn products in Europe and for the joint
development of Yellowhorn planting projects in Europe (the "Agreement") with
Vinomatos Espana, S.L. ("Vinomatos"), a Spain-based company that specializes in
planting fruit trees, vineyards, olive trees and agro-energetic planting
projects. Vinomatos utilizes a "Super High Intensive" technique for its planting
which includes a semi-automatic GPS guided machine. Vinomatos has developed a
program for applying its planting techniques to Yellowhorn production. The
Agreement will be effective for 3 years and will be renewable by the agreement
of both parties. 


Maple Leaf and Vinomatos' parent-company, Gaia Group ("Gaia"), have also entered
a Letter of Intent with Horqin Youyi Qianqi County, Inner Mongolia (the
"County"), for the planting of Yellowhorn seedlings on approximately 82,000
acres of land in Inner Mongolia (the "LOI") over the next 2 years. The LOI
allows for MPE and Gaia to sell up to 57 million Yellowhorn seedlings to the
County over the next 2 years at a price of 1 RMB ($0.16 CDN) per seedling for
planting, with the right to buy back certain amounts of the Yellowhorn seeds
once mature for 10 RMB ($1.60 CDN) per kilogram, instead of the current market
price in China of approximately 58 RMB ($9.28 CDN) per kg. 


Maple Leaf's management is excited about both the Agreement and the LOI, and its
new relationships with Vinomatos/Gaia and the County, and it hopes to continue
to be able to secure partnerships and agreements relating to its operations that
provide near term revenue and value to the company. The County is keen on
attracting 'Green' development projects in its region and has presented Maple
Leaf and Vinomatos/Gaia with several opportunities. The Agreement and the LOI
are key pieces for having success with Maple Leaf's 2012 corporate plans.


Maple Leaf has spent considerable time and resources in recent years growing
agro-energetic crops like Yellowhorn in China and testing and developing agro &
process technologies that can assist with the growth and development of
Yellowhorn products. Maple Leaf's goal has been, and remains to be, to become
the owner of Yellowhorn Plantations within China that provide a significant
Yellowhorn product source for its own use and distribution. Maple Leaf is also
committed to continuing to improve, develop and create a global value for
Yellowhorn products, which to date has only existed within China. Maple Leaf's
efforts surrounding Yellowhorn products has created significant public awareness
and interest from companies worldwide who are seeking to incorporate Yellowhorn
products into their environments, businesses and markets. Maple Leaf has become
the first information source regarding Yellowhorn products for several companies
in Europe and the United States, being a valuable provider of Yellowhorn
research and products. Both Maple Leaf and Vinomatos/Gaia are convinced of the
potential for Yellowhorn to become "the bio-energy crop for the world", and
therefore both are equally interested and excited to collaborate with each other
to develop Yellowhorn products and growth processes, and expand the market
consumption of Yellowhorn around the world. 


Given Maple Leaf's new arrangements with Vinomatos/Gaia and the County, and due
to the results of the extensive due diligence undertaken, Maple Leaf will be
cancelling its proposed asset purchase from KS Ecology (Canada) Inc. ("KS"), a
Vancouver, B.C. based Yellowhorn plantation company with operations in China.
Maple Leaf's new partnerships with Vinomatos/Gaia and the County will provide
for a much larger supply of Yellowhorn products and will do so at significantly
lower costs. Pursuant to its Asset Purchase Agreement with KS, Maple Leaf had
until January 27, 2012 to conduct due diligence on KS's assets and is permitted
to cancel the Asset Purchase Agreement entirely, and at no penalty, due to KS's
assets being primarily inconsistent with the details provided to Maple Leaf at
the time that the Asset Purchase Agreement was entered. For more information on
Maple Leaf's proposed transaction with KS investors are encouraged to see Maple
Leaf's previous news releases dated May 30, 2011, August 1, 2011 and November 9,
2011.


Maple Leaf will be continuing to update investors regularly in the coming weeks
regarding its ongoing operational initiatives and it is excited about being in a
position to release these details to current and potential shareholders.


About Maple Leaf Reforestation Inc. 

Maple Leaf is a Canadian company that focuses in the environmental industry with
2 main operating arms: 




1.  Eco-Agriculture - it operates a large-scale nursery business in Inner
    Mongolia, China that is focused on growing value-added tree seedlings
    and nursery products that assist with anti-desertification. 
2.  Renewable Energy - it is undertaking to commence a Yellowhorn seedling
    and tree operation which would provide valuable Yellowhorn seeds and
    ultimately oil from such seeds for the manufacture of bio-diesel fuel
    and premium healthy cooking oil. 



Maple Leaf is a wholly-owned foreign enterprise which allows the Company to
control 100% of the direction and operations of the company in China while
permitting the cash generated from operations in China to flow back to Canada. 


For further information regarding Maple Leaf Reforestation Inc., visit
www.mlreforestation.com or contact: 


Certain statements in this news release including (i) statements that may
contain words such as "anticipate", "could", "expect", "seek", "may" "intend",
"will", "believe", "should", "project", "forecast", "plan" and similar
expressions, including the negatives thereof, (ii) statements that are based on
current expectations and estimates about the markets in which Maple Leaf
operates and (iii) statements of belief, intentions and expectations about
developments, results and events that will or may occur in the future,
constitute "forward-looking statements" and are based on certain assumptions and
analysis made by Maple Leaf. Forward-looking statements in this news release
include, but are not limited to, statements with respect to future capital
expenditures, including the amount, nature and timing thereof; other development
trends within the China's seedling industry; business strategy; expansion and
growth of Maple Leaf's business and operations and other such matters. Such
forward-looking statements are subject to important risks and uncertainties,
which are difficult to predict and that may affect Maple Leaf's operations,
including, but are not limited to: the impact of general economic conditions;
industry conditions; government and regulatory developments; seedling product
supply and demand; competition; and Maple Leaf's ability to attract and retain
qualified personnel. Maple Leaf's actual results, performance or achievements
could differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurance can be given that any
of the events anticipated by the forward-looking statements will transpire or
occur, or if any of them do transpire or occur, what benefits Maple Leaf will
derive there from. 


Maple Leaf maintains a forward-looking statement database which is reviewed by
management on a regular basis to ensure that no material change has occurred
with respect to such forecasts. The Company will publicly disclose such material
changes to its forward-looking statements as soon as they are known to
management. 


Last Close: January 16, 2012 - $0.04 

Shares Issued: 80,682,875

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