TSX-V TRADING SYMBOL: CEC
VANCOUVER, June 2 /PRNewswire-FirstCall/ - Compliance Energy Corporation(the 'Company') announces that it has expanded the Memorandum of Understanding('MOU') which was originally signed with ITOCHU Corporation and LGInternational Corp. ('the Parties') on January 31, 2008. The expanded MOUincludes additional lands, outlines specific joint venture participatinginterests, and increases the financial consideration. The original MOU, whichprovided for the development of the Raven Coal Project encompassingapproximately 3100 hectares, has been expanded to include the Bear CoalProject, and the remainder of the West Fraser Mills Ltd. ('WFM') option landson Vancouver Island (hereinafter collectively called the 'Comox BasinHoldings') for a total of approximately 29,000 hectares.
Under the terms of the expanded MOU, the Parties have agreed to increasetheir financial contribution. They will now fund up to $12.0 million to earn a40% interest in the Comox Basin Holdings subject to the favourable outcome ofongoing due diligence and the execution of final agreements. Of this total,$600,000 has already been paid to secure exclusivity. The remaining $11.4million will be utilized to fund: a) all the activities necessary to reach aproduction decision on the Raven Coal Project including public consultation,additional drilling, environmental assessment and transportation studies, anda feasibility study; and b) payments to WFM to secure the transfer of title tothe option lands. The expanded MOU also contemplates that subject tosatisfactory results of the feasibility study the Parties would provide debtfinancing for the development of the Raven Coal Project.
ITOCHU Corporation is a major Japanese trading house and, among otherthings, has extensive experience in the development of coal mines and themarketing and sale of coal globally and has investments in coal mines inAustralia and Indonesia. ITOCHU had annual revenues of $22 billion US and NetIncome of $1.5 billion in the fiscal year ended March 2007.
LG International Corp. is a leading general trader in Korea with aworldwide overseas branch network and has abundant experience in coal miningdevelopment and the marketing and sales of coal worldwide. LG InternationalCorp.
