December 17, 2012

Agriterra Ltd. announced a positive update from its beef ranching and corn buying, processing and farming operations in Mozambique, with 115% increase in group revenues in first half of financial year to November 30, 2012.

Euan Kay, Agriterra executive director said, "The first half of this financial year has been highly successful with our grain processing operations performing extremely strong, and our beef operations expanding and beginning to generate material revenues for the group".

Their investment programmes, which were executed at both their beef and grain operations, have created a solid foundation for sustainable growth and expansion, and this is now translating into significant revenue generation.  Their Chimoio abattoir is fully operational with production slaughter that commenced on December 3, 2012.

Abattoir operations continue to build towards full capacity at 4,000 head per month from current throughput of over 200 head per month, and their retail unit in Chimoio commenced on December 11, 2012 with additional retail unit to open in Tete by end of this month.

Agriterra Ltd is an AIM listed agricultural company with four divisions: beef, corn, cocoa and palm oil.  Its cattle ranching business, Mozbife, has a herd in excess of 4,500 head, a land holding of over 17,350 hectares, a feedlot, a 4,000 head per month capacity abattoir and retail units.  In addition to selling meat from its own herds, throughput for the feedlot and abattoir will be supplemented using cattle bought in from local communities.

The Company's corn buying and milling operations, DECA and Compagri, are located in Chimoio and Tete in central and north-western Mozambique respectively.  These collect corn from circa 350,000 farmers using the Company's own vehicle fleet, process it into corn meal, the African staple, and then sell it back to the local market, into supermarkets and to the World Food Programme.