BLACK EARTH FARMING LTD 12 MONTHS REPORT COVERING THE PERIOD JANUARY 1 - DECEMBER 31, 2008

BLACK EARTH FARMING LTD 12 MONTHS REPORT COVERING THE PERIOD JANUARY 1 -
DECEMBER 31, 2008 

Reporting period highlights

Net turnover for twelve months 2008 amounted to RUR 717,748 thousand (USD*
24,430 thousand) which includes gain on revaluation of biological assets and
agricultural produce in the amount of RUR 13,475 thousand (USD* 459 thousand).
Net turnover in 2007 was equal to RUR 521,762 thousand (USD* 17,758 thousand)
with gain on revaluation of biological assets and agricultural produce in the
amount of RUR 139,188 thousand (USD* 4,737 thousand). As of 31 December 2008
the Company had sold approximately 18% of 2008's harvest, the rest being held
in storage. 

Operating loss for twelve months 2008 amounted to RUR 781,180 thousand (USD*
26,588 thousand) compared to a loss of RUR 166,458 thousand (USD* 5,666
thousand) in 2007. The operating income was affected by general and
administrative expenses in the amount of RUR 767,125 thousand (USD* 26,110
thousand), in comparison the general and administrative expenses amounted to
RUR 348,539 thousand (USD* 11,863 thousand) in 2007. The largest expense item
was personnel expenses - constituting about 55% of the total amount of general
and administrative expense. As part of the operating loss, the Company reported
a loss on land write-off in the amount of RUR 84,507 thousand (USD* 2,876
thousand); this reflects the Company's decision to discontinue any and all
further land registration expenditures on the 16,852 hectares of land. 

Loss after tax for twelve months 2008 amounted to RUR 733,623 thousand (USD*
24,969 thousand) compared with a loss of RUR 387,553 thousand (USD* 13,191
thousand) in 2007. 

Cash outflow from operating activities for twelve months 2008 amounted to RUR
1,940,707 thousand (USD* 66,055 thousand) compared to RUR 727,396 thousand
(USD* 24,758 thousand) in 2007. The result for the period has been adjusted by
depreciation and amortization charges in the amount of RUR 182,747 thousand
(USD* 6,220 thousand). The largest item that affected operating cash flow for
the period was increase in inventories in the amount of RUR 1,154,566 thousand
(USD* 39,297 thousand). 

Cash outflows utilized by investing activities for twelve months 2008 amounted
to RUR 1,485,544 thousand (USD* 50,562 thousand) in comparison with RUR
2,602,907 thousand (USD* 88,594 thousand) in 2007. In 2008 the significant cash
outflows were mainly concerned with acquisition of Property, Plant & Equipment
and land plots in the combined total amount of RUR 1,527,357 thousand (USD*
51,985 thousand), compared to RUR 2,224,120 thousand (USD* 75,701 thousand) in
2007. 

Cash inflow from financing activities for twelve months 2008 amounted to RUR
401,238 thousand (USD* 13,657 thousand) compared to RUR 8,870,177 thousand
(USD* 301,908 thousand) for the same period in 2007. 

Basic loss per share was equal to RUR 5.91 (USD* 0.20) twelve months 2008
compared to a loss per share of RUR 4.86 (USD* 0.17) in 2007. 

Cash position as of 31December 2008 was RUR 4,604,591 thousand (USD* 156,723
thousand). In light of the changing economic environment, the Company's senior
management continues to carefully evaluate its budgetary requirements. 

As of 31 December 2008 the Company controlled 317 thousand hectares of land,
including 95 thousand hectares in registered ownership and 8 thousand hectares
of registered long term leases. A total of 16,852 hectares of non-owned land
will as of 31 December 2008 be excluded from the calculation of total
controlled land due to the Company's decision to terminate the land
registration process for land plots controlled by these two subsidiaries. More
details can be found in the full report and in note 14 to the financial
statements. 

The board has decided to instate Sture Gustavsson as formal president

No dividend payment has been proposed.


Significant events after the end of the reporting period

As of February 16, 2009 Black Earth Farming Ltd. is traded on First North
Premier. First North Premier is a new segment within First North reserved for
companies that comply with higher disclosure and accounting standards than the
regular First North rules such as the main market disclosure rules. 


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


Twelve months report conference call

Date: 27 February 2009 

Time: 15:00 CET

Hosts: BEF President - Sture Gustavsson
AgroInvest CEO - Igor Smolkin
CFO - Michael Shneyderman
IR Director - Gustav Wetterling

Dial-in details: UK: +44(0)20 7138 0826
USA: +1 212 444 0481
Sweden: +46(0)8 5051 3785

Participant confirmation code: 6439539

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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, publicly listed in
Stockholm and operating in Russia. It acquires, owns and farms 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 over 317,000 hectares
of what perhaps is the world's most fertile soil. 

In 2008 Black Earth Farming harvested some 141,900 hectares and in 2009 it
plans to harvest over 180,000 hectares, effectively making it one of the
world's largest farming companies by planted area. 


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


(for complete report see attached file)