BLACK EARTH FARMING LTD.: BLACK EARTH FARMING LTD THREE MONTHS REPORT COVERING THE PERIOD JANUARY 1, 2008 - MARCH 31, 2008

Highlights of the first quarter 2008

* Total revenue for the first three months of 2008 amounted to RUR 250,711
thousand (USD* 10,662 thousand) compared to RUR 9,727 thousand (USD* 414
thousand) for the same period in 2007. Sales of crops for the first three
months of 2008 comprised RUR 212,077 thousand (USD* 9,019 thousand). All the
harvest from 2007 had, as previously announced, been contractually priced and
sold by 20 February 2008, however, since delivery of some of these volumes took
place after the reporting period, the accounting realization of those sold
volumes will be postponed until next reporting period. Total revenue for the
first three months 2008 consequently contains a revaluation of agricultural
produce equal to RUR 32,377 thousand (USD* 1,377 thousand). Sales of milk, meat
and services amounted to RUR 6,257 thousand (USD* 266 thousand). 

* Cost of sales for the first quarter of 2008 amounted to RUR 162,527 thousand
(USD* 6,911 thousand) in comparison with RUR 10,134 thousand (USD* 431
thousand) for the first quarter of 2007. 

* Total amount of general and administrative expenses for the first quarter of
2008 was equal to RUR 157,343 thousand (USD* 6,691 thousand) in comparison with
RUR 70,028 thousand (USD* 2,978 thousand) for the same period in 2007. The
largest expense that was included into general and administrative expenses was
personnel expenses, which amounted to RUR 75,120 thousand (USD* 3,194 thousand)
or 48 percent of the total amount. Personnel expenses for the same period in
2007 was RUR 28,698 thousand (USD* 1,220 thousand). 

* Operating loss amounted to RUR 90,334 thousand (USD* 3,840 thousand),
compared to a loss of RUR 128,119 thousand (USD 5,448 thousand) for the same
period in 2007. 

* The period contained a significant Financial Income item equal to RUR 264,380
thousand (USD* 11,243 thousand) in comparison with RUR 14,457 thousand (USD 615
thousand) in the same period last year. 

* Profit before tax amounted to RUR 98,502 thousand (USD* 4,190 thousand),
compared to a loss of RUR 114,588 thousand (USD 4,872 thousand) for the same
period last year. 

* Net profit for the first quarter of 2008 was equal to RUR 93,463 thousand
(USD* 3,976 thousand) in comparison with a net loss for the same period in 2007
which was equal to RUR 111,924 thousand (USD* 4,759 thousand). 

* Earnings per share for the period amounted to RUR 0.76 per share (USD* 0.03
per share) compared to a loss per share of RUR 1.46 (USD 0.06) for the same
period last year. The number of outstanding shares as at 31 March 2008 was
124,491,667. 

* Cash outflows utilized by investing activities amounted to RUR 793,487
thousand (USD* 33,743 thousand) in comparison with RUR 765,605 thousand (USD*
32,557 thousand) for the same period 2007. Cash outflows concerned with
acquisition of fixed assets and land plots were in the amounts of RUR 836,139
thousand (USD* 35,557 thousand) and RUR 41,894 thousand (USD* 1,782 thousand)
respectively. 

* A significant acquisition of land and farming facilities in the central Black
Earth region was finalized in the first quarter, adding a total of 24,800
hectares to the Company¡¦s control, as well as a 60,000 ton capacity elevator,
machinery and facilities. 

* The Company controlled about 325,000 hectares of land as at 31 March 2008,
including about 69,000 hectares in registered ownership. In 2008 the Company is
planning to crop 148,267 hectares. 

~ The USD equivalent figures are provided for information purposes only and do
not form part of the interim consolidated financial statements ¡V refer to note
2 (d) in the complete interim report.. 

See attached complete report.

For additional information, please contact:

Gustav Wetterling, IR Director, Black Earth Farming Ltd., tel: +44 207 117 81 00

Notes to Editor:

Black Earth Farming Ltd. is a leading farming company operating in Russia. It
acquires, owns and cultivates agricultural land assets primarily in the fertile
Black Earth region in southwest Russia. Black Earth Farming has gained a strong
market position in the Kursk, Tambov, Lipetsk, Samara, Voronezh and Ryazan
areas, controlling about 325,000 hectares of what perhaps is the world¡¦s most
fertile soil. Black Earth Farming will continue to acquire farmland in order to
draw full benefits of economies of scale in its operations. 

In 2007, Black Earth Farming harvested approximately 53,000 hectares with
crops, of which the greater part was wheat. In 2008, Black Earth Farming plans
to harvest roughly 150,000 hectares. 

Founded in 2005 by Michel Orlov, the company has been developed by the listed
investment companies Vostok Nafta Investment Ltd. and Investment AB Kinnevik
(publ). 


Black Earth Farming¡¦s Certified Advisor on First North is E. Öhman J:or
Fondkommission AB 

(For full report see attached file.)