Leaf Resources announced that construction is complete, and production has commenced at Essential Queensland Pty Ltd.'s Apple Tree Creek plant. The first batches of terpene and rosin have been produced and management is preparing to operate the plant on a 2 shift, 24x7 basis. Over the next two to three months plant operations will be fine-tuned, and production will be increased to meet the Company's targeted 8,000 tonnes per annum run rate of pine chemical production. Supply of raw material is consistent with the plant's requirements. Woodchip sales have commenced and chemical sales will begin in the coming weeks. The Company is working to increase capacity of chemical production at the current site.