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Press release from Marketwire

Hanfeng Provides Strategy and Operational Updates

Enters Agreement to Sell Equity Ownership of Non-Core Joint Ventures of Shandong and Shanxi in China Company Announces Plans for New 600,000 Metric Ton Facility at Its Indonesian Joint Venture Confirms Base Load of 300,000 MT in Orders for Indonesian Joint Venture for Calendar 2012

Monday, April 30, 2012

Hanfeng Provides Strategy and Operational Updates08:30 EDT Monday, April 30, 2012TORONTO, ONTARIO--(Marketwire - April 30, 2012) - Hanfeng Evergreen Inc. (TSX:HF) ("Hanfeng" or the "Company"), a leading producer and supplier of customized value-added fertilizer solutions in emerging markets, today provided several strategic and operational updates.ChinaHanfeng has entered into a definitive agreement with Heilongjiang Jifeng Investment Management Co. Ltd. ("Jifeng"), a private arms-length China based investment company focused in the agriculture and real estate sectors, whereby Jifeng will purchase the Company's 50 percent interest in each of the 50,000 MTPA Shanxi Fengxi Joint Venture plant ("SXJV") located in the Shanxi province and the 100,000 MTPA Mingua Shandong Joint Venture plant ("SDJV") located in the Shandong province, for cash consideration of approximately C$7.4 million (RMB 47.1 million) (the "Transaction"). The Transaction is expected to close on or before May 31, 2012. Hanfeng expects to realize a non-cash asset write-down of approximately $500,000, pre-tax, in the quarter ended March 31, 2012 in relation to this transaction.Under the terms of the Transaction, Jifeng will acquire Hanfeng's ownership in the joint venture plants and operations, but will not obtain the right to use the Hanfeng brand name for any fertilizer products produced by the SXJV or SDJV. Additionally the right to use the Company's sulfur coated urea ("SCU") technology, which is exclusively licensed to Hanfeng by Agrium Inc. will not transfer to Jifeng. Hanfeng decided to sell the SDJV and SXJV assets in order to focus its China-based resources on its 100 percent owned facilities where it enjoys key strategic advantages including full control of the entire production and sales process for its products, which on average enables the Company to generate higher margins. While Hanfeng previously partnered with large-scale conventional fertilizer producers in order to expand geographically, it has now evolved its strategy. Going forward, the Company will execute its strategic expansion by partnering with large market leaders and end-users like the Beidahuang Group of Companies ("Beidahuang") in China, and its partners PT. Matahari Kahuripan Indonesia ("Makin") and PT. Sumber Agrindo Sejahtera ("Sejahtera") in South-East Asia. Companies like these are early adopters and strong, prominent reference accounts for the environmental and economic benefits of Hanfeng's suite of multi-nutrient customizable SCR solutions. Through its association with these globally recognized companies, Hanfeng further enhances its brand and ensures off-take in its two key markets."Hanfeng continues to advance and expand its portfolio of products, including customized SCR which adds various micronutrients in addition to slow-release NPK and nitrogen enhancers. Our partners, through their own strong technical teams have assessed and validated the design and formulation of our technologically-advanced fertilizer solutions, as well as our after sales-service and support," stated Xinduo Yu, President and CEO of Hanfeng. "As we expand our South-East Asian markets, we expect to grow with these partners, as well as other companies in new jurisdictions utilizing our proven track record of producing products that increase yield, improve economics, and reduce environmental impact."IndonesiaThe Company is pleased to announce that through its 34 percent owned subsidiary, PT Hanampi Sejahtera Kahuripan (the "Indonesian Joint Venture"), it has agreed to construct a second facility in Indonesia with its joint venture partners Makin and Sejahtera. The proposed 600,000 metric ton per annum ("MTPA") joint venture facility (the "Kalimantan Facility") will be located in southern Kalimantan, on the Indonesian portion of the Island of Borneo. Kalimantan is a major producer of oil palm and is home to one of Makin's largest oil palm plantations. The production facility will be comprised of a 250,000 MTPA NPK plant, a 100,000 MTPA polymer coated SCU ("PSCU") plant, and a 250,000 MTPA bulk blending plant. The NPK plant will utilize Hanfeng's Methelyne Urea formulation in the NPK blend, which more precisely controls the releasing period of the nutrients. The estimated gross capital cost for the new facility is US$30 million, or approximately US$10.2 million net to Hanfeng (Hanfeng controls a 34 percent interest in the Indonesian Joint Venture). Once completed in late 2014, Hanfeng's Joint Venture will have over 1 million MT of slow and controlled release ("SCR") production and bulk blending capacity in Indonesia to service the growing Indonesian and South-East Asian market.The Company is also pleased to announce that it has confirmed commitments for at least 230,000 metric tons of SCR fertilizer products primarily from its joint venture partners in Indonesia. In addition, there is a confirmed commitment for an initial order totaling 70,000 MT to be delivered to Thailand, which represents a potential new market for the Company's products. Given that Thailand is a world leading sugar-cane and rubber producer, this makes it an important slow-release fertilizer market for the Company. About Hanfeng Evergreen Inc.Hanfeng is a leading producer and supplier of value-added fertilizer solutions in emerging markets. It is the largest producer of slow and controlled release fertilizer in two of world's most significant agricultural markets: the People's Republic of China ("China") and the Republic of Indonesia. As the first company to introduce slow and controlled release fertilizers into China's agriculture market, Hanfeng has established itself both as a market leader and innovator. A Canadian Company, Hanfeng is headquartered in Toronto, Ontario and its shares trade on the Toronto Stock Exchange under the ticker HF. This press release contains forward-looking statements based on current expectations. Forward-looking statements include, without limitation, statements evaluating market and general economic conditions, and statements regarding growth strategy and future-oriented projected revenue, costs and expenditures. Actual results could differ materially from those projected and should not be relied upon as a prediction of future events. A variety of inherent risks, uncertainties and factors, many of which are beyond Hanfeng's control, affect the operations, performance and results of Hanfeng and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. Some of these risks, uncertainties and factors include the impact or unanticipated impact of: current, pending and proposed legislative or regulatory developments in the jurisdictions where Hanfeng operates, in particular in China and the Republic of Indonesia; changes in tax laws; political conditions and developments; intensifying competition from established competitors and new entrants in the fertilizer industries; technological change; currency value fluctuation and changes in foreign exchange restrictions; changes in Chinese government support or restrictions on foreign investment; general economic conditions worldwide, as well as in China and South East Asia; Hanfeng's success in developing and introducing new products and services, constructing and operating new manufacturing facilities, expanding existing distribution channels, developing new distribution channels and realizing increased revenue from these channels. This list is not exhaustive of the factors that may affect any of Hanfeng's forward-looking statements. Risks and uncertainties about Hanfeng's business are more fully discussed in the Company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada. Hanfeng undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results or for any other reason. Readers are cautioned not to put undue reliance on forward-looking statements. FOR FURTHER INFORMATION PLEASE CONTACT: Niral V. MerchantHanfeng Evergreen Inc.Chief Financial Officer+1 (416) 368-8588nmerchant@hanfengevergreen.comwww.hanfengevergreen.comORInvestor RelationsKevin O'Connor+1 (416) 962-3300ko@spinnakercmi.com