Maple Energy provides an update on its ongoing ethanol project (the "Ethanol Project"), including the completion of an additional US$25 million of funding pursuant to the terms of the Company's existing project finance debt facility and the closing of a US$6 million medium term loan to refinance outstanding indebtedness of one of the Company's significant subsidiaries, Maple Gas Corporation del Peru S.R.L. (Maple Gas).

Maple is making excellent progress on the Ethanol Project, and the Company expects to commence commercial operations of the Ethanol Project during the fourth quarter of 2011.

Third Disbursement of Funds from Debt Facility

The third disbursement of US$25 million under the US$148.5 million senior secured debt financing (the "Debt Financing") for the Ethanol Project has occurred. The Company will use this capital to fund spending on the Ethanol Project and advance the Ethanol Project towards commencement of commercial operation. The funds were provided by the senior lenders pursuant to the terms of the Debt Financing. For more information on the terms of the Debt Financing, please see the Company's release dated 29 March 2010.

Ethanol Project Update

Ethanol Project Overview

The Ethanol Project is an estimated US$254 million, greenfield project on the northern coast of Peru consisting of (i) a 7,800 hectare sugar cane plantation in the initial phase which will provide sugar cane feedstock to the Ethanol Project and which includes main water delivery and drip irrigation systems, (ii) an ethanol plant (the "Ethanol Plant") with capacity to process up to 5,000 tonnes per day of sugar cane and produce up to 35 million gallons of ethanol per year, (iii) a 37-megawatt ("MW") power plant to supply all of the Ethanol Project's power requirements with the sale of any excess power, expected to be approximately 17 MW, to the Peruvian national power grid, (iv) a 60-kilovolt electric transmission line, approximately 36 kilometres in length, to connect the Ethanol Project facilities to the power grid and a 33/22.9-kilovolt distribution system for the plantation and pump stations, and (v) third-party operated and owned ethanol storage, loading, and shipping facilities near the Port of Paita.

Agriculture and Irrigation

The Company plans to plant 7,800 hectares of sugar cane in the main estate in the first phase of development of its land in the Ethanol Project area. Substantially all of the land for this first phase of development has been cleared. Maple has planted approximately 3,100 hectares of the main estate since commencing the planting of commercial sugar cane in early January 2011 using seed cane from its 345 hectare seed cane farm.

The Macacara Pump Station is currently in operation extracting water from the Chira River for delivery through a pipeline and canal system to the 660,000 cubic metre Macacara Reservoir which is in operation. The El Arenal Pump Station and the El Arenal Reservoir, with a capacity of 110,000 cubic metres, have been completed and are expected to be in operation during the second half of 2011 prior to Maple commencing the planting of the western portion of the main estate. The two river pump stations will be used to supply all the water requirements for the 7,800 hectares being developed in the first phase.

Construction is completed on 39 kilometres of the approximate 43-kilometre water pipeline system which forms part of the main water delivery system for the Ethanol Project. This system will supply water to 13 drip irrigation system pumping stations which will deliver water to the drip irrigation systems for the sugar cane plantation. The civil works for 11 of these pumping stations have been completed, six of these stations are available for operation, and five are currently in operation delivering water to the plantation. Drip tape for the irrigation systems has been installed in approximately 4,300 hectares of the plantation including the systems for the seed cane farms.

Industrial Facilities

Uni-systems, Inc. has manufactured approximately 98% of the sugar cane handling, juice extraction, and juice treatment equipment (collectively, the "Uni-systems Equipment") required for the Ethanol Plant. Substantially all of this equipment has been delivered to the Ethanol Project site. The fermentation, distillation, and dehydration equipment (collectively, the "Praj Equipment") necessary to produce fuel-grade ethanol has already been manufactured by Praj Industries Limited, and all of the Praj Equipment is at the Ethanol Project site. The boiler and steam generation equipment being manufactured by Uni-systems and Allsoft Engenharia e Informatica Industrial Limitada (also known as Mitre) is 100% completed, and substantially all of this equipment is now on site. The turbogeneration equipment, with planned capacity to produce up to approximately 37 MW, has already been manufactured by Siemens, and all of this equipment has been delivered to the site.

Haug S.A. (Haug), the contractor in charge of the construction of the Ethanol Plant, commenced the construction activities for the installation of these major equipment packages in September 2010 and has completed substantially all of the civil works for the major equipment packages for the Ethanol Plant. Significant progress was made on the erection and installation of all major equipment for the Ethanol Plant during the second quarter. Approximately 70% of the Uni-systems Equipment and Praj Equipment has been erected and installed, and the boiler and steam generation equipment is now approximately 75% erected and installed. The major components of the steam turbine and generator for the power generation facilities have been installed.

Haug also began construction and installation of the 60-kilovolt transmission line and the electric distribution system for the plantation and pump stations in the first quarter of this year. The 60-kilovolt electric transmission line was completed in May 2011, and certain portions of the electric distribution system for the pump stations have also been completed. In May 2011, the Company energised the electric transmission line and began purchasing electricity from a third-party generator on the national power grid.

In addition, Penta Tanks Terminals S.A. ("Penta") is continuing its works on the ethanol storage, loading, and shipping facilities near the Port of Paita. Penta completed all foundation works for the storage tanks in the first quarter of this year, and the fabrication of such tanks, except for the tank roofs, was completed in the second quarter of this year. The submarine pipeline to be used to transport ethanol from the storage tanks to ships has been approximately 60% fabricated. These storage, loading, and shipping facilities are expected to be in operation and available for use when the Ethanol Project commences commercial operation.

Medium-Term Credit Facility for Maple Gas

On 7 July 2011, Maple Gas entered into a US$6 million, three-year secured credit facility (the "Facility") with Banco Internacional del Perú, and Maple drew down the full available amount of US$6 million on 22 July 2011. The Facility is denominated in US Dollars at a fixed interest rate of 6.95% for any amounts drawn under the Facility. The Maple Companies, Limited, a subsidiary of Maple, is guaranteeing the payment obligations under the Facility. The net proceeds from the Facility are being used primarily to fully repay the outstanding indebtedness under an existing medium term loan facility with Banco de Crédito del Perú. By executing this refinancing operation, Maple Gas will achieve lower interest expenses.

Rex Canon, CEO of Maple Energy, commented today: "We are making great progress with the development of the sugar cane plantation and the planting of commercial sugar cane on the main estate. Construction activities on the Ethanol Plant are advancing at a rapid pace, and a significant portion of the major equipment for the Ethanol Plant has now been erected and installed. We remain on track to begin commercial production of ethanol in the fourth quarter of 2011.

"The refinancing of existing debt of Maple Gas with proceeds of the Facility demonstrates Maple's continuing efforts to improve cash flow from its ongoing hydrocarbon operations as the Company aims to increase the profitability of these operations."

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