Hi there, Agriterra Ltd (AIM; AGTA), the AIM listed company focussed on the agriculture sector in Africa, has announced an agreement to sell its legacy oil asset in Ethiopia to Marathon Oil for US$50 million.

The price is down 24%.

The market capitalisation of the Company is £40m, in-spite of the cash injection from Marathon of U$50 million plus $17 million due to the Company in respect to its additional legacy oil asset in South Sudan.

The potential total cash injection is therefore c.£40m, equivalent to the market cap. Above the cash, the business has four divisions being ranching, grain processing, cocoa and palm oil, of which three are revenue generating: Mozbife, the ranching operation has over 4,000 head of cattle, valued at an estimated minimum of $1,000 per head, with 10,000 head targeted by 2015.

The 1,350 hectare Mavonde Stud Ranch is stocked with ~1,000 Beefmaster cattle and the breeding herd has achieved consistent pregnancy rates of over 80%.

Construction of a U$1.5 million 48 billion litre dam has been completed with capacity to irrigate in excess of 4,000 hectares and provide 132kV of hydroelectric power for the irrigation pumps.

This increases the head to hectare ratio from 1.5 to 7 head per hectare.

Negotiations are underway to acquire additional land to enlarge the Mavonde ranch to 5,000 hectares which will allow for the ramp up of breeding programmes.

The Company also owns the 15,000 hectare Dombe Ranch located in Central Mozambique which is being stocked in addition to a twelve pen line feedlot with a capacity of 2,000 head.

A U$2.4m abattoir at Chimoio is nearing completion with a targeted capacity of 4,000 head per month processing rate.

Butchers shops are to open shortly to increase margins achieved on beef operations, maximising the benefits from a full value chain and complete the “field to fork” strategy. The Company’s maize business has been in operation since 2005 and is cash generative with healthy margins.

Revenues for the 12 months to 31 May 2011 were in excess of U$13.5 million.

The flagship facility at Chimoio, which buys from c.

350,000 farmers, has a storage capacity of 50,000 tonnes of maize and processing capacity of 40,000 tonnes of maize per annum.

A second site in Tete has also been constructed and is expanding, having produced $2.2 million in revenues during the same period. In Sierra Leone, Agriterra will focus on growing its cocoa trading operations, in addition to establishing cocoa plantations with the aim of becoming a significant regional producer for the growing international markets.

Established in 2008, Tropical Farms Ltd provides a high quality, sustainable and traceable cocoa buying operation head quartered in Kenema in the eastern region of Sierra Leone.

It operates through 12 buying operations and utilises a direct buying register of approximately 3,500 farmers across the country, with the target to have forty by Q4 2012.

Agriterra is developing TFL infrastructure from Freetown to upcountry Sierra Leone, which includes a 15 acre collateral management facility in Freetown and 2,000 sq m site in Kenema.

Importantly it is the first Sierra Leonean member of the Federation of Cocoa Commerce (FCC), an international trade organisation representing all areas of the cocoa supply chain.

The Company is also in advanced discussions to secure a cocoa plantation business in south-east Sierra Leone. Finally the Company has a 50 year lease over 45,000 hectares of brownfield agricultural land in Pujehun District in the Southern Province of Sierra Leone, an area suitable for palm oil. The Asset Value as at the end of November 2011 was c.$30milllion, which was before a $15 million investment conducted at 3p per share in December 2011. Just to reiterate, the Company has a defined growth strategy, revenue from three divisions, a tangible asset value, potential cash injection of c.

£40m and a current market cap of £40m. Many thanks, Susie [cid:image003.png@01CDA18C.318D9C70]