Hanfeng Evergreen Inc.

Hanfeng is currently focusing its resources on establishing low-cost production facilities to access the value-added fertilizer markets in the China East Region (Jiangsu, Shandong, Anhui, Henan, Shanxi and Zhejiang provinces and Shanghai), and the Northeast China region (Heilongjiang, Jilin, Liaoning provinces and Inner Mongolia Autonomous Region).

In the China East Region, Hanfeng currently operates plants in the Jiangsu, Shanxi and Shandong provinces. In Jiangsu, Hanfeng operates a 100,000 tonnes/annum NPK plant, a 100,000 tonnes/annum SCU plant and a 50,000 tonnes/annum blended SCR plant. In the Shanxi province, Hanfeng operates with its joint venture partner a 50,000 tonnes/annum SCU plant. In the Shandong province, Hanfeng along with its joint venture partner operate a 100,000 tonnes/annum PCU facility and is currently expanding capacity for another 140,000 tonnes/annum. The scheduled completion date is the first quarter of fiscal 2011.

In the Northeast China Region, Hanfeng operates its’ largest facility in the Heilongjiang province. Currently operating is a 100,000 tonnes/annum SCR plant, a 200,000 NPK plant, a 50,000 tonnes/annum coated SCF facility, a 50,000 tonnes/annum PSCF facility and a 50,000 tonnes/annum blending facility.

Jiangsu Slow-release Blending Plant

Location	Jiangyan, Jiangsu Province, China
Fertilizer	Value-added blended fertilizer
Production Capacity	50,000 tonnes/annum
Primary Market	Urban greening and agriculture

Hanfeng's state-of-the-art fertilizer plant began production in Shanghai in April 2004, blending slow-release NPK fertilizers using SCU supplied by the Nu-Gro Corporation of Canada. In Q3/2006, Hanfeng decided to move the blending equipment to its Jiangyan site (same site as its Jiangsu NPK plant and SCU plant), and at the same time, increase the production capacity from 20,000 tonnes per annum to 50,000 tonnes per annum.

Jiangsu Slow-Release SCU (Sulfur Coated Urea) Plant

Location	Jiangyan, Jiangsu Province, China
Fertilizer	Sulfur Coated Urea
Production Capacity	100,000 tonnes/annum
Primary Market	Agriculture

In November 2004, Hanfeng acquired an exclusive license for Nu-Gro Corporation's SCU technology and know-how for the Chinese market. The plant has received favorable tax and economic incentives from the government commencing in the first profitable year and for a period of time thereafter, as well as preferred pricing for water and electricity.

The Jiangsu SCU Plant is the first advanced SCU fertilizer plant in China with a commercial production capacity of 100,000 tonnes per annum. The sales teams have been pursuing advance sales, and have already signed a three-year sales contract for 20,000 tonnes per year of SCU with a major provincial fertilizer manufacturer.

Jiangsu NPK Plant

Location	Jiangyan, Jiangsu Province, China
Fertilizer	High-concentration urea-based compound fertilizer by tower granulation
Production Capacity	100,000 tonnes/annum
Primary Market	Agriculture

In March 2005, Hanfeng acquired an exclusive ten year license for world-leading NPK fertilizer technology and know-how from Shanghai Keyi Fertilizer Engineering Technology Center, a government research institute. The fertilizer to be produced by this process is a premium product due to their uniform round shape and high concentration of nutrients. Unlike fertilizer blended from separate materials, each compound granule contains a fixed ratio of nitrogen (N), phosphate (P) and potash (K), facilitating uniform application of all the key nutrients. This plant is being constructed on the same site as the Jiangsu SCU plant, leveraging the infrastructure to create economies of scale. This plant will enjoy the same tax benefits as the SCU plant. An active sales and marketing program has resulted in letters of intent for approximately 50,000 tonnes of sales orders for 2006 delivery.

Heilongjiang NPK Plant

Location	Shangzhi, Heilongjiang Province, China
Fertilizer	Homogenous NPK compound fertilizer using advanced urea melting granulation technology
Production Capacity	100,000 tonnes/annum
Primary Market	Agriculture

The purchase includes the 100,000 tonnes/annum fertilizer plant, N, P and K warehouses, a finished products warehouse, a 3-storey office building, land use rights for 49 years for 26 acres, and ownership of newly developed proprietary urease inhibitor slow release technology and urease formaldehyde (UF) technology, both under patent protection. Hanfeng will be receiving the standard tax incentive of 0% income tax rate for the first two years, and 50% of statutory rate for the following three years. The plant has existing customers and sales infrastructure, and in March 2006, announced 20,000 tonnes of sales orders for 2006 delivery from existing customers.

Heilongjiang Prill Tower NPK Plant

Location	Shangzhi, Heilongjiang Province, China
Fertilizer	High-concentration urea-based compound fertilizer by tower granulation
Production Capacity	200,000 tonnes/annum
Primary Market	Agriculture

Uses the same exclusive ten year license for world-leading NPK fertilizer technology as the Jiangsu NPK plant. The fertilizer to be produced by this process is a premium product due to their uniform round shape and high concentration of nutrients. Unlike fertilizer blended from separate materials, each compound granule contains a fixed ratio of nitrogen (N), phosphate (P) and potash (K), facilitating uniform application of all the key nutrients. This plant is being constructed on the same site as the recently acquired premium NPK plant in Heilongjiang, leveraging the infrastructure to create economies of scale.

Heilongjiang SCF Plant

Location	Shangzhi, Heilongjiang Province, China
Fertilizer	Coated single and compound
Production Capacity	50,000 tonnes/annum
Primary Market	Agriculture

Heilongjiang PSCF Plant

Location	Shangzhi, Heilongjiang Province, China
Fertilizer	Polymer coated single and compound
Production Capacity	50,000 tonnes/annum
Primary Market	Agriculture

Heilongjiang Slow-release Blending Plant

Location	Shangzhi, Heilongjiang Province, China
Fertilizer	Value-added blended fertilizer
Production Capacity	50,000 tonnes/annum
Primary Market	Agriculture

Shanxi Fengxi SCU Plant

Location	Yuncheng, Shanxi Province, China
Fertilizer	Sulfur Coated Urea
Production Capacity	50,000 tonnes/annum
Primary Market	Agriculture
JV Partners	Shanxi Fengxi Fertilizer Industry (Group) Ltd. and Agrium Advanced Technologies

Minghua Shandong Plant

Location	Shandong Province, China
Fertilizer	Polymer Coated Urea
Production Capacity	100,000 tonnes/annum
Primary Market	Agriculture
JV Partners	Shandong Mingshui Great Chemical Group

Indonesia NPK Plant (Under Construction)

Location	Surabaya, Indonesia
Fertilizer	NPK
Production Capacity	150,000 tonnes/annum
Primary Market	Agriculture
JV Partners	PT. Matahari Kahuripan Indonesia and PT. Sumber Agrindo Sejahtera