BLACK EARTH FARMING LTD.: YEAR END RELEASE 2007

Reporting period highlights

*	Total amount of revenue for the 2007 financial year was equal to RUR 521,762
thousand or USD* 21,256 thousand in comparison with only RUR 12,300 thousand or
USD* 501 thousand for the year 2006. The increase is explained by the start of
the extensive crop production in 2007. The sales of crops during the period
comprised about 70 percent of the total amount of revenue and amounted to RUR
358,279 thousand or USD* 14,596 thousand. Revenue of crops for the similar
period in 2006 was RUR 10,361 thousand or USD* 422 thousand. 

*	The financial result was significantly affected by revaluation of
agricultural produce as of 31 December 2007. The revaluation was done in
accordance with the requirements of IAS 41. Total amount of revaluation for
crops harvested in 2007 was equal to RUR 139,188 thousand or USD* 5,670
thousand, which was 27 percent of the total amount of revenue for the period in
question. 

*	Cost of sales for the reporting period amounted to RUR 278,505 thousand or
USD* 11,346 thousand in contrast to last year's figure of RUR 24,903 thousand
or USD* 1,015 thousand. The largest groups of expenses were the following: 1)
Material expenses (38 percent of the total amount of cost of sales); 2)
Depreciation and amortization charge (25 percent); 3) Salary and social taxes
(18 percent); 4) Other direct production costs (19 percent).

*	Loss before income tax amounted to RUR 505,539 thousand or USD* 20,596
thousand. As a result no dividends were either declared or paid during the
period in question. In 2006 the amount of loss before income tax was equal to
RUR 208,011 thousand or USD* 8,475 thousand. The largest income statement items
that significantly affected the result for the twelve months of 2007 were
general and administrative expenses that amounted to RUR 457,346 thousand or
USD* 18,632 thousand. One of the largest expense items that was in included
into general and administrative expense was warrants granted to high management
personnel on the amount of RUR 115,481 thousand or USD* 4,705 thousand. 

*	Earning Per Share for 2007 amounted to USD -0.38, compared to -0.31 in 2006.

*	The period's cash inflow from financing activities amounted to RUR 8,870,177
thousand or USD* 361,366 thousand in comparison with RUR 3,035,528 thousand or
USD* 123,666 thousand. The Company issued 33,600,000 ordinary shares for the
total amount of RUR 7,166,245 thousand or USD* 291,949 thousand in December
2007. Net cash outflow from investing activities was RUR 2,571,743 thousand or
USD* 104,772 thousand. Cash outflow from operating activities was equal to RUR
746,503 thousand or USD* 30,413 thousand. 

*	As of 31 December 2007 the Company controlled about 280,000 hectares of land
in the Black-Earth Region of Russia. 

*	On December 28, 2007 the Company's shares were successfully listed in the
form of Swedish Depository Receipts on the First North market place in
Stockholm.


Financial reporting for the 9 month period ended 30.09.2007 contained certain
allocation mistakes, a correction would improve the operating result of the
company by RUR 128 448 thousands, from RUR (168 588) thousand to RUR (40 104)
thousand. These allocations did not have any impact on gross profit margin and
net income of the company. An explanatory note about the correct allocation
will be made available on the Company's website.

For further information contact:
Gustav Wetterling, Head of Investor Relations, Black Earth Farming Ltd. 
Tel: +44 207 117 81 00