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NATIONS ENERGY HAS CONCLUDED AN AGREEMENT TO ACQUIRE NATIONAL CHOICE BIO FUELS INDUSTRIES LTD. AND LHTAKO ENERGY CORPORATION


Nations Energy Corporation("Nations Energy "), is pleased to announce that it has concluded a share exchange agreement (the "Agreement") with Mr. T. Grewal who is the majority shareholder and a founder of National Choice Bio Fuels Industries Ltd. ("National Choice Bio"), a private British Columbia company, pursuant to which Nations Energy has acquired from Mr. Grewal approximately 78% of the issued and outstanding shares of National Choice Bio (the "Transaction"). 

About the Transaction

Pursuant to the terms of the Agreement, Nations Energy has issued to Mr. Grewal Nations Energy common shares in exchange for all the common shares of National Choice Bio which Mr. Grewal owns, the result of which is that National Choice Bio has become a 78% owned subsidiary of Nations Energy. The principal asset of National Choice Bio is its ownership of 49% of the common shares of Lhtako Energy. Nations Energy had previously acquired direct ownership of 20.5% of the common shares of Lhtako Energy. Concurrently with the closing of the Transaction, Nations Energy acquired the option (the “LEC Option”) to purchase from Mr. Grewal all of the 20.5% of the common shares of Lhtako Energy which he owns. Upon the exercise of the LEC Option, Nations Energy would control a direct and an indirect ownership interest in Lhtako Energy of 90%.

The Lhtako Dene First Nation will continue to own a fully participating 10% ownership interest in Lhtako Energy. “This transaction is consistent with the Business plan Nations Energy has for its Biomass Energy projects of securing, managing and optimizing revenue from forestry tenure in conjunction with First Nations Bands. We look forward to building on our relationship with the Lhtako Dene Nation and the success and growth of Lhtako Energy.” said Dale A. Andrews Chief Executive Officer and President of Nations Energy.

Concurrently with the closing of the Transaction, Mr. Grewal also subscribed for an additional 298,000 common shares Nations Energy at a price of $0.50 per Share.

Lhtako Energy

The principal asset of Lhtako Energy is the ownership of a Forest Licence granted by the Province of British Columbia to harvest up to 1,125,000 cubic meters of timber over a 15 year period commencing January 1st, 2010 (the “Forest Licence”). Logs suitable for the production of lumber harvested from the Forest Licence have been and will continue to be sold to arm’s length sawmill operations and provide a significant source of revenue to Nations Energy. Nations Energy has identified a site with 80 acres of land, including a substantial rail siding, in the harvesting area of the Forest Licence. Nations Energy intends to construct a pellet manufacturing facility with a production capacity of 120,000 tons per annually on that site. It is the intention that shavings, sawdust and other fiber residuals created from harvesting timber on the Forest Licence will be retained by Nations Energy under a trading agreement with the sawmills who wish to purchase logs. This fiber will provide a source of secure feedstock for the Nations Energy pellet plant operation.

Management of National Choice Bio and Lhtako Energy

Mr. Grewal will continue as the senior executive officer and a director of National Choice Bio and Lhtako Energy and will join the Nations Energy management group as an Executive Vice President. Mr. Grewal will be responsible for overseeing the Prince George office, business development and relationships with First Nations organizations. Mr. Dustin Meierhofer, who is a Registered Professional Forester, will continue to have responsibility for all matters related to the harvesting operations on the existing Forest Licence and the development and applications for additional forest licences. Mr. Richard Crowell, who is the Senior Vice President Forestry and Operations for Nations Energy, will join the management team of National Choice Bio and Lhtako Energy. Mr. Crowell’s operational responsibility is to oversee all aspects of Nations Energy’s acquisition of forest licences, the construction and operation of pellet plants and the planning and coordination of the construction of complementary biomass power generating facilities. Mr. Crowell brings over twenty five years of leadership experience in the forest industry in the development and management of forest product and related facilities as well as in the value-add or remanufacturing business. His areas of expertise include plant layout & design management, product development as well as project, production and quality management.

The management team of National Choice Bio and Lhtako Energy will report directly to Dale A. Andrews, Chief Executive Officer and President and Robert K. MacLean, Chairman of Nations Energy.

About Nations Energy Corporation

Nations Energy was incorporated in British Columbia, Canada and is a bioenergy company which has been created to produce wood and energy products for European, North American, and Asian Markets from harvesting timber owned by the Company. The Company intends to create a diverse bioenergy and wood products portfolio, including sawmill operations producing for the Asian market, Community-Based Biomass clean power plants with Electricity Purchase Agreements with BC Hydro, wood pellets produced under Offtake Agreements for the European residential and utility markets delivered through a port facility controlled by the Company.

On behalf of the Board of Directors

"Dale A. Andrews"
President, Chief Executive Officer and Director

For further information please contact:
            Robert K. MacLean

            Chairman and Director
            Telephone:  604 609 6162

            Email: robert.maclean@nationsenergycorp.com

FORWARD-LOOKING INFORMATION

Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company’s beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from a conclusion, forecast or projection in such forward-looking information include, among others, risks arising from general economic conditions and adverse industry events. The Company cautions that the foregoing list of material factors is not exhaustive. When relying on forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of thesefactors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.




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Historical Press Releases

This website contains historical and archived press releases for Nations Energy Corp. The information in these press releases is historical in nature, has not been updated, and is current only to the date indicated in the particular press release. This information may no longer be accurate and therefore you should not rely on the information contained in these press releases. To the extent permitted by law, Nations Energy Corp. and its employees, agents and consultants exclude all liability for any loss or damage arising from the use of, or reliance on, any such information, whether or not caused by any negligent act or omission.