BLACK EARTH FARMING LTD.: STRONG DEMAND IN BLACK EARTH FARMING'S IPO

Black Earth Farming Ltd. ("Black Earth Farming"), a leading farming and land
owning company operating in Russia, announces a strong demand for Swedish
Depository Receipts (SDRs) in its initial public offering on OMX First North in
Stockholm, Sweden. 

* The offer was several times oversubscribed.

* The offering price of the Black Earth Farming SDRs has been determined at SEK
50 per SDR. 

* Black Earth Farming issued SDRs for a total value of SEK 1,680 million,
equivalent to approximately 28.1 percent of the share capital and votes in
Black Earth Farming. 

* Black Earth Farming has been approved for admission to First North. First day
of trading is expected to be December 28, 2007. The ticker will be BEF. 

Black Earth Farming has attracted significant interest from institutional
investors in large parts of the world. Following the offering, Black Earth
Farming will have in excess of 5,000 holders of SDRs. 

The strong demand has resulted in the Board of Directors deciding to utilise
the option to upsize the offering, which totals SEK 1,680 million in gross
proceeds to Black Earth Farming. The amount equals 33,600,000 SDRs being
issued, corresponding to 28.1 percent of the share capital and votes. Black
Earth Farming has undertaken to issue a further 4,800,000 SDRs at the request
of E. Öhman J:or Fondkommission AB during the first 30 days following the first
day of trading at First North, in order to cover any overallotment or to effect
stabilizing transactions in connection with the offering. Following the
offering, but excluding any overallotment option, 119,566,667 SDRs will be
outstanding. 

Statement from the President

Michel Orlov, founder and President of Black Earth Farming said: 
"We are proud to see the overwhelming trust in Black Earth Farming, both from
Swedish and international investors. It is a confirmation that investors share
our belief and excitement for the industry and Black Earth Farming's
opportunities. It gives us the strength to continue to build one of the most
efficient farming companies in the world". 

E. Öhman J:or Fondkommission AB was appointed Global Co-ordinator and
Bookrunner and Nomura International plc was appointed Joint Lead Manager in
connection with the offering. Pareto Securities AS and UniCredit CAIB UK Ltd
were appointed Co-lead Managers. Bankaktiebolaget Avanza and Nordnet Bank AB
were appointed Net Managers. 


For additional information, please contact:

Michel Orlov, Founder and President, Black Earth Farming, tel: +44 153 412 33 55

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

Oscar Hyléen, Brunswick Group LLP, tel: +46 733 90 47 60 


Notes to the Editor:

Black Earth Farming Ltd. is a leading farming and land owning 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 was
among the first foreign financed companies to make substantial investments in
Russian agricultural land assets, and because of its early establishment, Black
Earth Farming has now gained a strong market position in the Kursk, Tambov,
Lipetsk, Samara, Voronezh and Ryazan areas, controlling 277,000 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 52,000 hectares of crops,
of which the greater part was wheat. 

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). 
__________

This press release is not for distribution, directly or indirectly, in or into
the United States (including its territories and dependencies, any State of the
United States and the District of Columbia), Canada, Australia or Japan. This
press release does not constitute or form a part of any offer or solicitation
to purchase or subscribe for securities in the United States. The securities
mentioned herein have not been, and will not be, registered under the United
States Securities Act of 1933 (the "Securities Act"). 

Securities may not be offered or sold in the United States except pursuant to
an exemption from the registration requirements of the Securities Act. There
will be no public offer of securities in the United States. No offer is
directed at individuals whose participation would require additional
prospectus, registration or other measures beyond those prescribed by Swedish
law, or would violate applicable rules in such countries. Any prospectus or
application form relating to any offer, may not be distributed in any country
in which the distribution of an offer or any offer itself requires measures as
outlined above, or are contrary to the regulations in such countries.