Agriterra Limited has agreed terms to acquire, subject to certain conditions precedent, 75 per cent. of the issued share capital of each of Desenvolvimento E Comercialização Agricola Limitada ("DECA"), Compagri Limitada ("Compagri") and Mozbife Limitada ("Mozbife") and for the novation of certain loans to the Company for an aggregate consideration of US$17 million, which will be satisfied by the issue of 200,000,000 Ordinary Shares and the payment of US$2 million in cash (the "Acquisition").

Under the AIM Rules, the Acquisition will constitute a reverse takeover and, as such, is conditional, inter alia, on the approval of Shareholders at an Extraordinary General Meeting to be held on 21 January 2009.

Information on the Acquisition

DECA, Compagri and Mozbife are Mozambique incorporated companies which are each owned 25 per cent. by Goodworth Service Limited, and 75 per cent. by Central African Mining and Exploration Company plc ("CAMEC"), a company which holds approximately 8.5 per cent. of Agriterra's Ordinary Shares and has common directors (Messrs Edmonds and Groves) with the Company.

Investimentos Vesta Limitada ("Vesta") is a wholly-owned subsidiary of DECA.

DECA

DECA, founded in 2005, is based in Chimoio in the Manica Province of Mozambique, with operations primarily encompassing agricultural trading and processing functions. Its headquarters are located on a 20 hectare site and consists of seventeen 1,000 tonne silos, seven warehouses each with capacity for 3,500 tonnes of maize, seven family houses, four single quarters and one guest house, as well as two milling plants, one workshop and a fleet of over 80 vehicles. The Company has a seasonal workforce of 300 people. Chimoio itself has sound infrastructure with an airport, rail terminal and extensive road network.

DECA's operations are run by a team of experienced individuals and comprise the following principal components:

Acquisition of grain from local, smallholder farmers;

Treatment and processing of grain;

Sales of maize meal and bran/harmony chop; and

Installation of infrastructure and logistics to facilitate operations.

Compagri

As part of DECA's planned expansion, a new facility, Compagri, is in the course of being established 400km north of Chimoio in the Tete province. It is proposed that Compagri's operations will mirror those of DECA.

The first phase of development is expected to be finished in February 2009 on the 32 hectare site. Once completed this will house four 1,600 tonne silos, two warehouses each with a 3,500 tonne capacity, one mill, and four staff houses. The site has good communication links and its location will provide access to Malawi which is a potential export market.

Mozbife

Alongside the grain business, the management of DECA have identified cattle ranching and feedlot production as a complementary business as there is a large and growing demand for beef in Mozambique.

Mozbife has been incorporated to begin this process and currently owns one farm near Chimoio, where it has established a small breeding herd. Vesta

Vesta is the non-trading, wholly-owned subsidiary of DECA which formerly held the lease to the land from which DECA operates.

Listing exchange: AIM

Expected first day of trading: 2009-01-22

Expected money raised: NIL