SOIL SUB TECHNOLOGIES LIMITEDABN 39 078 388 155ASX AND MARKET...

SOIL SUB TECHNOLOGIES LIMITED
ABN 39 078 388 155
ASX AND MARKET ANNOUNCEMENT
28 October 2008
CHINESE BIODIESEL PROJECT UPDATE
In August 2007, the Company ratified a Licence Agreement with Hong Kong based Timms Cho Group Limited to
distribute NutriMix™ in China, including the People’s Republic of China, Hong Kong, Taiwan and Macau.
The first project under the agreement with Timms Cho Group Limited is for the use of the NutriMix™ product in a
Chinese government sponsored biodiesel project in the Jiangxi province. Royalty fees of US$62.50 per hectare of
planting under the Biodiesel Project are payable and a minimum criterion of 100,000 hectares for each of the first four
years of the Licence is included in the Agreement. The royalty is payable upon completion of planting of every 100,000
hectares.
The Company expected the first 100,000 hectares to be planted by December 2008, meaning the first royalty payment of
US$6.25 million was expected to be received by the Company in December 2008.
However, the Company has been advised by Michael Cho of Timms Cho Group Limited that “. . . the planting out of the
nursery trees and seedlings will not take place until after the Chinese winter. These delays are in the best interest for
our project and we will advise you [of] any further developments when appropriate.”
Based on the above advice by Michael Cho, it would appear to the Board of Soil Sub Technologies Limited that the first
royalty payment of US$6.25 million originally expected in December 2008 will be deferred.
The Board and Management of Soil Sub Technologies Limited are currently investigating the circumstances further,
including an estimate from the Timms Cho Group Limited as to when the Company can now expect payment.
For further information, contact
Graeme Scott, Executive Chairman
About Soil Sub Technologies Limited:
Soil Sub Technologies Limited has developed intellectual property rights including patents enabling it to
manufacture and market, a highly water retentive, nutrient efficient fully organic growing medium product under
the brand name “NutriMix™”. NutriMix™ is manufactured from renewable waste resources produced by the
processing of other agricultural products which are available in abundance in many parts of the world.
The efficacy of NutriMix™ has been shown in independent international trials, while the commercial utility has
been demonstrated in the Company’s first licence agreement in June 2007 for the use of the product in a Chinese
government sponsored bio-diesel project in the Jiangxi Province.
Soil Sub Technologies Limited
Suite 18, 30 Park Road
Milton QLD 4064
Telephone +61 (0)7 3368 3557
Fax + 61 (0)7 3368 1138
Email [email protected]