EMPIRE INDUSTRIES LTD. AND ATHABASCA CHIPEWYAN FIRST NATION ANNOUNCE LETTER OF INTENT TO FORM A PARTNERSHIP IN THE FORT MCMURRAY REGION
Fort McMurray, Alberta, July 21, 2008 � The Athabasca Chipewyan First Nation Holding Corporation (�ACFN�) and Empire Industries Ltd. (TSX-V: EIL) (�Empire�) jointly announced that they have signed a letter of intent to become partners in the ownership of Sorge�s Welding Ltd. (�Sorge�s Welding�). The new partnership is being created as a result of ACFN purchasing the controlling ownership of Sorge�s Welding from Janet Sorge. Empire will retain its 49% minority interest in Sorge�s Welding, which it purchased December 31, 2006.
Building on its extensive business interests in north eastern Alberta, ACFN made a strategic decision to broaden its business activities to include steel fabrication, piping, field construction and maintenance services for the burgeoning oil sands market in north eastern Alberta and they have chosen to do this in partnership with Empire Industries as co-owners of Sorge�s Welding. The new partnership is scheduled to close in August.
“ACFN wants to help Sorge�s Welding succeed in performing a reasonable amount of the estimated four million man-hours of outsourced welding and maintenance services in the region,� stated Chief Allan Adam. �We also want Sorge�s Welding to aggressively pursue the steel fabrication and installation services portion of the more than $100 billion of oil sands capital projects as a local, aboriginal controlled contractor. We see this investment as one of the best ways to have our First Nation Band�s youth have a clear path towards new challenging careers in the skilled trades, construction and maintenance management and even engineering.�
Janet Sorge stated, �Richard and I have built an excellent Aboriginal controlled company over the past 20 years but we both knew we had to ensure that what we built could continue to grow and capitalize on the tremendous construction and maintenance opportunities in the Fort McMurray region of Alberta. Having my First Nation Band buy our controlling interest in Sorge�s Welding was the best way to accomplish this goal.� Richard Sorge added: �I am fully committed to staying on as CEO of Sorge�s Welding to ensure a smooth transition of ownership and help the company take its place as a leader amongst Aboriginal controlled businesses in the Ft. McMurray region. This is not my retirement announcement. Rather, it is a move that demonstrates our personal commitment to increasing the benefits to the Aboriginal community arising from the massive, oil sands development plans as well as expanding the effectiveness of our company�s strong apprenticeship programs we�ve put in place over the years.�
Guy Nelson, CEO of Empire Industries Ltd., commented: �This innovative partnership has been created specifically to allow the oil sands industry to avail themselves of a globally competitive, Aboriginal controlled partnership focused on steel fabrication, construction and maintenance services. With Empire�s numerous plants in Alberta, Manitoba and B.C., we are well positioned to support the Sorge�s Welding field construction and maintenance services team, creating even more opportunities for us to employ both skilled and apprentice trades people from the First Nations in the Ft. McMurray area and across the country.�
About Sorge�s Welding Ltd.
Sorge’s Welding Ltd. was founded in 1989 as an Aboriginal controlled, certified steel fabricator and field installation contractor based in the Fort McMurray region of North Eastern Alberta. Empire Industries Ltd. became a minority partner of Sorge�s Welding Ltd. at the end of 2006. The partnership brings expanded capabilities and depth of product and capacity to Sorge�s Welding Ltd. Business operational principles for all work performed by Sorge�s Welding are; safety, reliability, quality and unparalleled service.
About Athabasca Chipewyan First Nation.
The ACFN reserve lands are located on the southwest shore of Lake Athabasca. The First Nation offices are located in Ft. Chipewyan, Alberta approximately 200 aerial miles from Ft. McMurray, Alberta. Ft. Chipewyan is Alberta�s oldest continuous European settlement dating back to 1788 when the North West Company established an outpost there. The ACFN Holding Corporation owns controlling interests in a number of businesses including; Denesoline Environment, Tech Sonic Services, Chip Manufacturing, Dene West and Poplar Point Camp Services, and AC&T Civil Contractors .