Migao Corporation Signs 50,000 Tonne Contract to Supply Potash Fertilizer

Secures Supply of Potassium Chloride

Migao Corporation, (TSX:MGO) a China-based specialty potash fertilizer producer, is pleased to announce that it has received major purchase orders to supply 50,000 tonnes of potassium sulphate.

The potassium sulphate is to be supplied by Migao's wholly-owned subsidiary Guangdong Migao and delivered by rail to three surrounding provinces for application on high value crops. Delivery of the potassium sulphate is to be completed by January 30, 2009.

"As a result of this order and other commitments for our specialty potash-based fertilizers, all of our production, across all of our facilities, is sold forward until March 2009," said Mr. Liu Guocai, Migao's CEO. "We continue to experience strong demand for our fertilizers from the high value crop market sectors we serve throughout China. For farmers to achieve the yield and quality consumers are demanding for crops such as tobacco, fruits and vegetables they must continue to apply our fertilizers in the prescribed manner."

Migao is also pleased to report it has secured long-term supply of potassium chloride, a major input for its processing of potassium sulphate, from its Russian supplier. The term of the supply agreement extends to August 31, 2009 from the previous term of March 31, 2009. The amount of potassium chloride secured under the revised contract will fully satisfy Migao's needs including new production capacity coming on line during the term of the agreement. Pricing of the potassium chloride is subject to prevailing prices at the time of each delivery, which is anticipated to be on a monthly basis.

Migao Corporation, through its wholly owned subsidiaries, owns and operates fertilizer production plants in various strategic locations across China for the production and sale of specialty potash fertilizer (potassium nitrate and potassium sulphate) to China's high value agricultural market. Migao Corporation is subject to, and complies with strict government regulations that govern safety, quality and environmental protection. Please visit www.migaocorp.com for further information.

This news release may include forward-looking statements within the meaning of certain securities laws. Forward-looking statements involve inherent risks and uncertainties, both general and specific, which give rise to the possibility that predictions, forecasts, projections and other forward-looking statements will not be achieved. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. We caution readers not to place undue reliance on these statements as a number of important factors, could cause actual results to differ materially from the estimates expressed in such forward-looking statements.

Factors that may cause actual results to differ materially from expectations, and about material factors or assumptions applied in making forward-looking statements, may be found under the "Risk Factors" sections in our Annual Information Form and annual MD&A. Except as required by Canadian securities laws, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf; such statements speak only as of the date made. We cannot assure readers that actual results will be consistent with these forward-looking statements, and the differences may be material. The forward-looking statements included herein are expressly qualified in their entirety by this cautionary language.

SOURCE: Migao Corporation

Migao Corporation Jay Hussey Vice President Corporate Finance (416) 869-1108 ext 104 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Migao Corporation Randall Smallbone Chief Financial Officer (416) 869-1108 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Website: www.migaocorp.com