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MPAC Industries Corp.: Corporate Update and Work Status at Soma Mine

Tuesday, July 31st, 2007

MPAC Industries Corp. is pleased to announce that it has secured the required promissory note from E.E. Madencilik Dagitim Sanay Ticareti ve Pazarlama Ltd. Sti (“E&E”) in accordance with the terms of the recently announced definitive agreement with E&E.
The Note is in the amount of two (2) million US Dollars as called for in the Agreement, and guarantees the future payments from E&E for the delivery of refined coal.
MPAC has now taken possession of the selected site on the coal mine and will shortly begin the Site preparation for the installation of its Coal Refining Plant.
The Company has reviewed several proposals for the coal preparation and crushing equipment required, and has now selected the manufacturer for the same and intends to place this order shortly. Other contracts for the remainder of the Plant circuit are being reviewed and are intended to be let in an orderly manner. Certain equipment from the pilot plant will be incorporated into the circuit where possible, while other (surplus) pilot equipment will be either stored for future expansion or sold.
Barring any unforeseen eventualities, the Company’s start up phase and timelines advancing into commercial production continue to fit comfortably within the schedule set by MPAC.
The Company would also like to make the following observation to its shareholders: The Soma mine has been in operation for a number of years and has held its coal mining license in good standing since 1996. The license has been successfully renewed every year since its grant, with the current year’s license having just been renewed in June 2007.
The situation that MPAC encountered in Tokat / Zile appears now to be shared by other Canadian companies who are, or were also attempting to bring mining ventures into commercial production for the first time under a new grant of mining license. Fortunately, this is not the case for the Soma mine, as this particular mining operation has been in good standing for the past eleven years.
Our shareholders should also be cognizant of the fact that Turkey’s mining laws have changed only some five years ago – becoming more accommodating to foreign companies. With Turkey’s pending application to become a member of the European Union (“EU”), many of the Turkish rules and regulations are constantly being reviewed and amended to ensure their accord with those of the EU. This is particularly true for new ventures, which cannot avail themselves of any grandfathering rules.
The Company has been very aware of the learning curve involved in Turkey, and for any company that ventures into a foreign country, and MPAC has repeatedly made this known to its shareholders in its News Releases and MD&A filings.
Being mindful of this, and now that MPAC carries a seal of credibility in Turkey for its Coal Refining technology, the Company’s preference is to only, for the near term, seek out currently operating coal mines in Western Turkey for future expansion.

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