Active Control Technology Inc. (TSX-V:ACT) today announced that it has signed a binding and exclusive partnership agreement to sell ActiveMine TM, the premier wireless communications and locating system for mines, in China.

Under the agreement, ACT will ultimately form a cooperative joint venture with two China-based partners – a mining technology developer that is a wholly-owned subsidiary of one of China’s major mining companies, and an established provider of mining services to the country’s coal mining industry.

China has the largest number of coal mines in the world and represents a market opportunity of $3 billion, according to management's estimates. The country is moving aggressively to improve underground coal mining safety and increase mining output to meet its growing demand for coal: technologies like ActiveMine, which provides both operating efficiencies and safety features through 100% wireless Wi-Fi communications, are expected to play a major role.

“This is a watershed agreement for Active Control in building the foundation to exploit what we believe is the largest opportunity for ActiveMine sales in the world,” said ACT President and CEO Steve Barrett. “This venture builds upon our recent successes in the U.S. market, on a potentially much larger scale.”

The cooperative joint venture with ACT’s China-based partners will be finalized upon receiving Chinese Government certifications for ActiveMine. The cooperative joint venture will be based on the agreement signed this week, which also establishes a business plan for the first two years of operation. This includes the installation of an ActiveMine demonstration system in China later this year and the opening of a Beijing office.

The demonstration system will be installed in an underground longwall mine owned by ACT’s China partner, and located in Shanxi province. The mine, which was visited last week by ACT President and CEO Steve Barrett and ACT Director Peiwei Ni, will be used for tours by prospective customers and for government certifications. The site’s proximity to Beijing, where most of the country’s coal mining companies are headquartered, makes it ideal for these purposes.

The Beijing office will serve as Active Control’s hub over the next 12 months to achieve key milestones in association with its Chinese partners:

• Undertake “mining”, “intrinsically safe” and “functionality” certifications of ActiveMine under Chinese government regulations;
• Plan, stage, install and support the demonstration site;
• Initiate introductory sales outreach to coal mining companies ; and
• Pursue other sales opportunities with surface and non-coal mines which do not require “intrinsically safe” certification for communications equipment.

About ActiveMine
The ActiveMine communications, data and tracking system enables monitoring of production, personnel and equipment in all types of surface and underground mining environments, including coal and base metal mines. The system is designed to:

• Operate on a 100 percent wireless Wi-Fi network backbone.
• Be less susceptible to water and mechanical damage of all sorts, including rock fall.
• Use open-standards technology.
• Meet federal MINER Act requirements for wireless systems as established in MSHA policies.
• Enable miners who become isolated underground to stay linked, even when they are distant from one another and cut off from the outside world – a capability made possible by the system’s unique “StarfishTM” feature.
• Provide four-day intrinsically safe battery back-up and power supply.
• Provide a wireless communications and data network above-ground, linked seamlessly to underground networks.

About Active Control Technology
ACT designs and markets wireless network control and communication systems for buildings and extreme environments. Located in Burlington, Ontario, Canada, the company trades publicly on the TSX Venture Exchange under the symbol ACT. For more information, visit the company's web-site at www.activecontrol.com.