Hanfeng Evergreen : Announces Appointment of Interim Chief Financial Officer and Provides Update to Shareholders

TORONTO, ONTARIO--(Marketwired - July 23, 2014) - Hanfeng Evergreen Inc. (TSX:HF) ("Hanfeng" or the "Company") announced today that Wendy Xue has resigned as interim Chief Financial Officer of the Company. Kevin Zhang has been appointed as interim Chief Financial Officer of the Company effective immediately.

Mr. Zhang is a Certified General Accountant, a member of the Association of Chartered Accountants (ACCA, U.K.) and a member of the Chinese Institute of Certified Public Accountants. Mr. Zhang was previously the Chief Financial Officer of Changfeng Energy Inc. from May 2010 to April 2013 and the Chief Financial Officer of McVicar Industries Inc. from August 2008 to April 2010. Mr. Zhang has been acting as a consultant to the Company since May 2014 and was previously employed by the Company as a Senior Accountant.

Operational Update

Since the last operational update provided by the Company, as announced on May 27, 2014 the Company has agreed to sell its wholly-owned subsidiary Hanfeng Slow-Release Fertilizer (Jiangsu) Co., Ltd. for cash consideration of RMB 30 million (approximately Cdn$5.2 million) with the final payment expected to be received by the Company by the end of July 2014. In addition, limited repairs continue to be made at the Company's Heilongjiang (HLJ) plant and there has been no production at the HLJ plant as a result of the summer season and a lack of short-term prospects for customer orders. The Company continues to evaluate alternatives available to it with respect to its business and operations.

Continuous Disclosure and Securities Filings

The Company is continuing its efforts to retain an auditor but, to date, has not been able to identify an auditor that has the desire to take the assignment [and views the potential of finding a suitable auditor in the near term as unlikely]. As a result, the Company does not believe that it will be able to file its outstanding financial statements and accompanying management discussion and analysis or any future financial statements and accompanying management discussion and analysis in the near future and does not intend to do so until the engagement of, and review by, a new auditor. The common shares of the Company remain subject to cease trade orders issued by Canadian securities regulatory authorities and were delisted from the Toronto Stock Exchange effective at the close of market on June 9, 2014.

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 one of world's most significant agricultural markets, the People's Republic of China. Hanfeng is headquartered in Toronto, Ontario.

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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; the outcome of the privatization transaction; the outcome of shareholder disputes in the Indonesian joint venture; supply or purchases of non-compliant products; 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.