SOURCE: Arrow Resources Development, Inc.

December 05, 2007 09:44 ET

Arrow Revenue Projection for Its Initial Mixed Use Developments

NEW YORK, NY--(Marketwire - December 5, 2007) - Arrow Resources Development, Inc. (OTCBB: ARWD) has detailed its development projects with its joint-venture partners for the coming year. The Company has refocused some of the agricultural portions of its operations due to the recently revised Indonesian/World Bank regulations for agricultural/forestry operations.

The initial programs in South Konawe, located in the South East Sulawesi province of Indonesia, include the cultivation of two mixed crop eucalyptus/corn plantations as both an immediate and long-term revenue generating operations.

Corn has significant value as corn feed for livestock, a food product, and a basic raw material for the production of ethanol. The first of these plantations includes 72,000 hectares (ha), which includes the development of 40,000 ha of land to be planted exclusively with corn with an anticipated yield of 6.5 metric tons per hectare per harvest. The project's gross revenue for the first year (2008) of operations is projected to be $195,000,000, with net proceeds to Arrow being $19,500,000.

This plantation will also include 18,000 ha planted with eucalyptus, with corn in-between, with an anticipated yield of 4.8 metric tons per hectare per harvest. The balance (14,000 ha) of the plantation is reserved for open space and community housing.

The second plantation operation is a total of 90,000 ha which includes the development of 33,000 ha with corn/eucalyptus and an anticipated yield of 4.8 metric tons per hectare per harvest. Approximately 18,000 ha on this plantation will be devoted to the development of long-term growth trees (such as teak, mahogany, etc.) with the remaining 39,000 ha to be a natural preserve animal habitat. This corn plantation will supply the Group's planned ethanol production facility, with a planned capacity of 1,000,000 liters per day, which will be sold locally into a market with very strong demand.

Planting corn in the spaces between the trees will enable the company to maximize revenue while fertilizing the trees by using its post-harvest byproduct to continuously enrich the soil. In the short term, while waiting for the eucalyptus trees to mature for harvest, the Company can anticipate three harvests annually (the local climate allows for continuous growth with a mature plant being produced in approximately 100 days).

The Company's first ethanol plant (1,000 ha) is located in the Bay of Lapuko, which was provided to the company by the local government for the purpose of constructing its harbor facility and industry complex. This location is within close proximity to the city of Kendari and within 10-15 KM from the Company's corn and eucalyptus site, making it ideal for direct shipment at significantly reduced transportation costs.

Forward-looking Statement

Certain statements in this press release constitute "forward-looking statements" relating to Arrow Resources Development, Inc. and its subsidiaries within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding future events, our financial performance and operating results, our business strategy and our financing plans are forward-looking statements. These statements are only predictions. Known and unknown risks, uncertainties and other factors could cause actual results to differ materially from those contemplated by the statements. In evaluating these statements, you should specifically consider various factors that may cause our actual results to differ materially from any forward-looking statements.

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