Migao Announces Fiscal 2007 First Quarter Financial Results

75% Revenue Growth and 43% Earnings Growth

Migao Corporation (TSX VENTURE: MGO), a China-based leading specialty potash fertilizer producer, is pleased to report that during the first quarter ended December 31, 2006, the Company achieved revenues of $21.7 million and net earnings of $2.4 million, or $0.08 per basic share.

For the three months ended December 31, 2006, Migao's revenues increased by 75% as compared to the first quarter in fiscal 2006 and increased 41% as compared to the recent fourth quarter of fiscal 2006. Similarly, the Company's earnings of $2.4 million is an increase of 43% compared to the same period last year, and an increase of 23% compared to the recent fourth quarter period ended September 30, 2006.

"The expansions at Sichuan and Guangdong announced in November ramped up to full production levels quickly and resulted in the strong revenue growth for the quarter," said Mr. Liu Guocai, Migao's President and CEO. "We will continue adding capacity throughout the year, including additional capacity at existing locations and new sites across China."

The planned expansion of 20,000 tonnes of potassium sulphate production at Guangdong Migao was recently completed ahead of schedule. Combined with the potassium nitrate or potassium sulphate production at the Company's Sichuan Migao and Liaoning Migao subsidiaries, Migao has a total of 200,000 tonnes of current design production capacity.

Gross margin as a percentage of revenues was 21.5% for the quarter ended December 31, 2006, similar to the first quarter a year ago.

Cash and cash equivalents totaled $7.7 million at December 31, 2006. Working capital at December 31, 2006 was $16.2 million.

Income tax during the quarter totaled $0.1 million. Each of Migao's wholly owned operating subsidiaries qualify for a favourable tax program whereby the first two profitable years are tax exempt and the next three years' tax rate is half of the prescribed corporate rate. Income tax paid during the quarter is a result of Sichuan Migao being in its first of the three-year tax reduced rate.

Migao recently announced a $20 million bought deal private placement financing which is expected to close on or about February 22nd. The proceeds of the financing will be primarily used to fund expansion.

Further expansion activity currently in progress includes an additional 20,000 tonnes of potassium nitrate at Sichuan Migao and a new 40,000 tonne potassium sulphate facility in a new industrial park close to Shanghai. The new Shanghai Migao facility is scheduled to be completed later this year.

With the completion of the Shanghai Migao expansion by the end of calendar 2007, the annual design production capacity of potassium nitrate and potassium sulphate will be 260,000 tonnes by the end of calendar 2007. As well, the design production capacity includes an additional 260,000 tonnes per year of by-product.

Conference Call
Migao will be hosting a conference call to discuss the first quarter
results at 10:00am Thursday February 15, 2007. The details are as follows:
Dial in number: 416-695-7848 or 1-866-902-2211
Taped replay (until February 22, 2007): 416-695-5275 or 1-888-509-0081
Taped replay access code: 640265

Migao Corporation, through its wholly owned subsidiaries, owns and operates fertilizer production plants in various strategic locations across China for the production and sales of specialty potash fertilizer (potassium nitrate and potassium sulphate) to the Chinese domestic agricultural market. Please visit www.migaocorp.com.

This press release contains statements that may constitute forward-looking statements, which may include financial and other projections, as well as statements regarding future plans, objectives or economic performance. Forward-looking information involves significant risks, assumptions, uncertainties and other factors that may cause actual future results or anticipated events to differ materially from those expressed or implied and accordingly, investors should not place undue reliance on any such forward-looking statements. Factors that could cause results to vary include those expressed in the Company's filings with Canadian securities regulatory authorities. All information presented herein should be read in conjunction with such filings.

The TSX Venture Exchange has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release.