BLACK EARTH FARMING LTD NINE MONTHS REPORT COVERING THE PERIOD JANUARY 1 - SEPTEMBER 30, 2008

Reporting period highlights

Net turnover for the first nine months of 2008 amounted to RUR 941,895 thousand
(USD* 37,308 thousand) which includes gain on revaluation of biological assets
and agricultural produce in the amount of RUR 432,244 thousand (USD* 17,121
thousand). Net turnover for the same period in 2007 was equal to RUR 391,242
thousand (USD* 15,496 thousand) with gain on revaluation of biological assets
and agricultural produce in the amount of RUR 218,845 thousand (USD* 8,668
thousand). Due to the currently unfavorable price environment, the Company had
only sold approximately 8% of this year's harvest as of 30 September 2008, the
rest being held in storage. 

Operating loss for the first nine months of 2008 amounted to RUR 175,025
thousand (USD* 6,933 thousand) compared to a loss of RUR 168,588 thousand (USD*
6,679 thousand) for the same period in 2007. The operating income was affected
by general and administrative expenses in the amount of RUR 544,529 thousand
(USD* 21,569 thousand), in comparison the general and administrative expenses
amounted to RUR 186,999 thousand (USD* 7,407 thousand) in the same period 2007.
The largest expense item was personnel expenses - constituting about 56% of the
total amount of general and administrative expense. 

Loss after tax for the first nine months of 2008 amounted to RUR 126,425
thousand (USD* 5,008 thousand) compared with a loss of RUR 145,472 thousand
(USD* 5,763 thousand) for the same period in 2007. 

Cash outflow from operating activities amounted to RUR 1,665,404 thousand (USD*
65,965 thousand) compared to RUR 889,132 thousand (USD* 35,217 thousand) in
2007. The result for the period has been adjusted by depreciation and
amortization charges in the amount of RUR 124,440 thousand (USD* 4,929
thousand). The largest item that affected operating cash flow for the period
was increase in inventories in the amount of RUR 1,011,407 thousand (USD*
40,061 thousand). 

Cash outflows utilized by investing activities amounted to RUR 897,784 thousand
(USD* 35,562 thousand) in comparison with RUR 1,651,791 thousand (USD* 65,427
thousand) in 2007. In 2008 the significant cash outflows were mainly concerned
with acquisition of fixed assets and land plots in the combined total amount of
RUR 1,298,496 thousand (USD* 51,433 thousand), compared to RUR 1,695,420
thousand (USD* 67,155 thousand) in the first half of 2007. 

Cash inflow from financing activities for the first nine months of 2008
amounted to RUR 451,925 thousand (USD* 17,900 thousand) compared to RUR
2,688,988 thousand (USD* 106,510 thousand) for the same period in 2007. 

Basic loss per share was equal to RUR 1.02 (USD* 0.04) for the first half of
2008 compared to a loss per share of RUR 1.90 (USD* 0.08) for the same period
in 2007. 

Cash position as of 30 September 2008 was RUR 5,281,605 thousand (USD* 209,202
thousand). In light of the changing economic environment, the Company's senior
management continues to carefully evaluate its budgetary requirements and has
made some adjustments in terms of strategic capital deployment namely related
to elevator construction. While establishing its own storage capacity still
remains one of key strategic drivers, the Company now believes that cash
conservation theme has become an important imperative and, therefore, the short
term elevator construction projects have been scaled down as compared with
previously announced plans. Cash flow generation is prioritised and the 2009
production plan has been increased. 


As of 30 September 2008 the Company controlled 332,600 hectares of land,
including 83,348 hectares in registered ownership and 8,100 hectares of
registered long term leases. 

On 27 August 2008 Igor Smolkin was recruited as the new CEO of the Company's
Russian subsidiaries Agro-Invest 



Significant events after the end of the reporting period

As of 31 October 2008 the Company had obtained ownership certificates for an
additional 5,602 hectares of land compared to the end of the reporting period,
bringing the total of owned land to 88,950 hectares. 

On 10 November 2008 Michel Orlov - President and Deputy Chairman of the Board
of Directors of Black Earth Farming resigned and Sture Gustavsson - the
Company's Chief Agronomist was appointed as acting president and CEO of Black
Earth Farming Ltd. 


* 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. 


Nine months report conference call

Date: 17 November 2008 

Time: 15:00 CET

Hosts: Acting president and CEO - Sture Gustavsson
AgroInvest CEO - Igor Smolkin
CFO - Michael Shneyderman
IR Director - Gustav Wetterling

Dial-in details: UK: +44 (0)20 7806 1967
USA: +1 718 354 1385
Sweden: +46 (0)8 5051 3792

Participant passcode: 1476357

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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 cultivates
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
332,000 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 2008 Black Earth Farming harvested some 141,900 hectares and in 2009 it will
harvest over 180,000 hectares 


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