Cleanfield Enters Into Letter of Intent for Chinese Joint Venture
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ANCASTER, ONTARIO, Sep 12 (MARKET WIRE) -- Cleanfield Alternative Energy Inc. ("Cleanfield")(TSX VENTURE: AIR) is pleased to announce that its wholly-owned subsidiary, Cleanfield Energy Corp. ("CEC"), has signed a letter of intent (the "LOI") to form a joint venture company (the "JV Company") with Zhejiang Jingye Technology Co. Ltd. ("ZJT"), an arm's length party based in Huzhou, Zhejiang, China. Pursuant to the terms of the LOI, the JV Company will be established in China and will be jointly owned by CEC and ZJT. The JV Company will become the exclusive distributor of Cleanfield's V3.5 turbines in China. Furthermore, the JV Company will construct a new manufacturing facility in China and manufacture Cleanfield's V3.5 turbines and other renewable energy products for Chinese and international markets. The proposed joint venture is subject to certain conditions, including the parties entering into a formal joint venture agreement and receiving all required regulatory and third party approvals. In connection with the proposed joint venture, ZJT intends to make up to $3 million equity investment in Cleanfield and will pay to Cleanfield a $1 million deposit after ZJT receives necessary regulatory approval to transfer the funds. The deposit will be held in trust and will be used to subscribe for Cleanfield's common shares upon the execution of the formal joint venture agreement subject to compliance with the rules of the TSX Venture Exchange. The deposit will be returned to ZJT if the parties do not reach a formal joint venture agreement. CEC and ZJT hope to enter into a formal joint venture agreement within 45 days of Cleanfield's receipt of the deposit. "We are very pleased to be establishing this joint venture with ZJT," said Tony Verrelli, President and CEO of Cleanfield. "Cleanfield will be well-positioned to participate in China's rapidly developing renewable energy industry. China is key to our global strategy as we commence our global expansion. We view ZJT as an ideal strategic partner." Forward Looking Statements This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "anticipated", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Cleanfield is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. Cleanfield cannot assure investors that actual results will be consistent with these forward looking statements and Cleanfield assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances. About Cleanfield Alternative Energy Cleanfield Alternative Energy is the parent company of Cleanfield Energy(TM) and is committed to the development of renewable energy products for both consumer and commercial applications. THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. Contacts: Cleanfield Alternative Energy Tony Verrelli President/CEO (905) 304-5223 Website: www.cleanfieldenergy.com Copyright 2008, Market Wire, All rights reserved. -0-
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