BLACK EARTH FARMING LTD.: BLACK EARTH FARMING LTD SIX MONTHS REPORT COVERING THE PERIOD JANUARY 1, 2007 - JUNE 30, 2007

Important events for the first half year 2007 

In the period 1 Jan 1, 2007 - Jun 30, 2007, total revenue amounted to 213,882
kRUR / 8,285 kUSD*. The revenues are primarily attributable to gains from a
revaluation of the crop as of Jun 30, 2007 and which amounted to 199,606 kRUR /
7,732 kUSD*. The revaluation has been done in accordance with IAS 41. Gain on
revaluation of biological assets represents the difference between the cost and
the fair value of finished goods and work in progress (The Company did not
revalue its biological assets in previous periods). 

· Other revenues amounted from plowing and transportation services provided to
third parties (total amount of other revenue amounted to 14,159 kRUR / 548
kUSD*). As the industry is subjected to seasonality the main revenue is
expected in the second half of the year and especially in the forth quarter. 

· Cost of sales consisted of direct and indirect costs and amounted to 12,374
kRUR / 479* kUSD (there was no cost of sales for the first half of 2006).
Direct costs for the grain segment include costs for seeds, fertilizers,
chemicals, fuels and outsourced services. Indirect costs include labour costs,
depreciation, repayment and other. 

· Loss before tax has decreased by 44,039 kRUR / 1,707 kUSD* and amounted to
13,461 kRUR / 521 kUSD* (57,500 kRUR/ 2,228* kUSD) for the first six months of
2007. During the period no dividends were neither paid out nor declared. 

· Net loss for the first six months of 2007 amounted to 69,611 kRUR / 2,697
kUSD*. 

· As of Jun 30, 2007 Black Earth Farming Limited ("BEF" or "The Company") had
approximately 236,000 hectares of land under its control, which constitutes an
increase of approximately 107,000 hectares since the beginning of the year. 


Important events for the second quarter 2007

· Total revenue for the period amounted to 204,155 kRUR / 7,909 kUSD* and was
primarily attributable to gains from a revaluation of the crop as of Jun 30,
2007 and which amounted to 199,606 kRUR / 7,732 kUSD*. 

· In the period from the March 1, 2007 until June 30, 2007 the group generated
a net profit amounting to 42,313 kRUR / 1,641 kUSD*, which is mainly
attributable to gains from revaluation of the biological assets as per Jun 30,
2007. 

· Operating profit before income tax for the second quarter of 2007 comprised
101,127 kRUR / 3,919 kUSD* in comparison with the loss for the similar period
of the last year (24,574 kRUR / 951 kUSD*). 

(For complete report see attached file)

For additional information, please contact:

Gustav Wetterling, IR Director, Black Earth Farming Ltd, Tel: +7 916 610 20 15


Black Earth Farming was founded in 2005. The company is focused on acquiring
and owning farm land in Russia and the former CIS countries as well as
establishing a leading agricultural operation on the acquired land. The company
has been developed by the listed investment companies Vostok Nafta Investment
Ltd and Investment AB Kinnevik, which together still are the principal
shareholders in the company. Black Earth Farming has successfully raised more
than USD 200 million in the equity and debt markets to finance its land
acquisitions. It has also attracted internationally leading farm managers to
manage a world class agricultural operation. 

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