ERA Carbon Offsets Ltd.
TSX VENTURE : ESR

ERA Carbon Offsets Ltd.

July 28, 2009 09:15 ET

ERA Carbon Offsets Ltd. Announces Sale Agreement with HEAG Sudhessische Energie AG (HSE) and Granting of Options

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 28, 2009) - ERA Carbon Offsets Ltd. (TSX VENTURE:ESR), through its wholly owned subsidiary, ERA Ecosystem Restoration Associates (ERA), is pleased to announce that it has successfully concluded a Sales Agreement, previously announced in its Press Release dated June 10, 2009, with the German energy company "HEAG Sudhessische Energie AG" (HSE), for the delivery of 500,000 tonnes of Verified Emissions Reductions (VERs) in 2009 and 2010.

The transaction, which concluded with the execution of a Verified Emissions Reductions Sales Agreement (VERSA), will deliver 300,000 tonnes of validated VERs in the third and fourth quarter of 2009, and 200,000 tonnes of VERs in the first quarter of 2010, at an average price of $8.00 USD per tonne. The VERs sold to HSE will be validated and verified to the ISO 14064-2 and Climate, Community and Biodiversity Alliance (CCBA) standards. ISO 14064-2 is the proposed requirement for verification under the Canadian Federal Offset System for Greenhouse Gases (as published June 10, 2009). CCBA is the leading voluntary international standard for projects that simultaneously minimize climate change, support sustainable development, and conserve biodiversity.

The VERs sold to HSE are generated through ERA's Community Ecosystem Restoration Program (CERP) which has been operational in the Lower Fraser Valley of British Columbia since September 2005. CERP is a large scale urban forest restoration program that began in the District of Maple Ridge in 2006, which now includes projects in the District of Mission, the City and Township of Langley, and within Metro Vancouver. The CERP program is supported by the sale of VERs generated through ERA's ecosystem restoration and reforestation endeavors in degraded riparian areas. The VERs sold to HSE will be registered on the TZ1 Environmental Registry, an international carbon offsets registry which supports transactions in high quality voluntary carbon offsets through a credible, externally audited retirement facility. VERs are utilized by ethical organizations looking to reduce their carbon footprint by increasing their sustainability endeavors. Entega Vertrieb GmbH & Co. KG (Entega), a division of HSE, will utilize the offsets to create a CO2-neutral energy product for its customers throughout Germany. Entega is one of Germany's largest electricity and gas supply companies.

Dr. Robert Falls, CEO of ERA commented, "We are very pleased to be working with HSE, a very well established and progressive energy company based in Darmstadt, Germany. The leadership of HSE has endeavored to fully understand their carbon impact as a company and have made the decision to become more sustainable through a variety of approaches, which include offsetting carbon emissions through ERA. HSE is an energy company that benefits greatly from capturing and utilizing some of the earth's most valuable natural resources. In committing to the restoration of degraded riparian ecosystems through ERA's forestry offsets, they have chosen to replenish earth's natural resources to mitigate their overall carbon impact. We believe their leadership represents further confirmation of the growing appetite for high quality forest-based offsets in the developing international carbon market."

Dana Veith, Innovations Manager for HSE stated, "We are excited to be involved in the development of significant reforestation projects with ERA. Healthy forests are the only viable way known to remove vast amounts of carbon dioxide from the atmosphere. Europe, along with the rest of the world, are now awakening to this fact and taking action, and for an energy company like HSE, renewing earth's natural resources is a positive step towards long term sustainability. We look forward to offering our customers a carbon neutral energy product."

ERA Carbon Offsets Ltd. would also like to announce that it will grant to various employees and consultants a total of up to 475,000 options. The options are exercisable at a price of $0.44 per share with an exercise period of five years from the date of grant.

About HSE and Entega.

HEAG Sudhessische Energie AG (HSE) is a German based energy and infrastructure company based in Darmstadt. Together with its subsidiaries, HSE provides retail, industry, and residential communities with electricity, natural gas, water, and technical services. As one of Germany's largest electrical and natural gas suppliers, Entega Vertrieb GmbH & Co. KG (Entega) is focused on the provision of modern, sustainable energy. As an energy supplier utilizing and harnessing natural resources from the earth, Entega has a responsibility to the people we serve and to the world we inhabit. It is this awareness that motivates us to not only focus on protecting the environment, but to also renew the environment in order to help mitigate the effects of climate change. To this end, Entega works to shape and support an energy supply system that does not endanger the ability of future generations to grow and prosper. By actively supporting sustainability, our customers drive the ecological change that ensures renewable energy and renewable thinking are no longer a niche idea, but the norm. Our aim at Entega is simple: a carbon neutral energy supply that remains affordable. By linking the provision of energy with the provision of a sustainable future, we can create a win-win scenario for both the environment and the economy. That is what Entega calls a sustainable provision of a modern day energy supply. "Entega - Ernergie der nachsten Generation", "Entega - Energy of the next Generation".

About ERA Carbon Offsets Ltd.

ERA is a Canadian based pioneer in forest-based carbon offset programs and project development. Through its subsidiary, ERA Ecosystem Restoration Associates Inc., ERA produces significant measurable carbon sequestration benefits that are validated and verified to international standards and sold to purchasers interested in offsetting their greenhouse gas footprints as a means of mitigating the effects of climate change. ERA is producing EcoNeutral® offsets from the company's "Community Ecosystem Restoration Program" (CERP) in the Lower Fraser Valley, near Vancouver, British Columbia. ERA is also developing projects in Africa, South America, and the United States. ERA has generated ISO-validated and verified EcoNeutral® carbon offsets from the CERP project to supply clients and offset users that include Rolling Stone Magazine, Shell Canada Ltd., Air Canada, the Motion Pictures Producers Industry Association, and the Globe Foundation.

Additional information on ERA can be found on the corporate website www.eraecosystems.com or by contacting investor@econeutral.com.

On behalf of the Board of Directors of ERA CARBON OFFSETS LTD.

Robert Falls, Chief Executive Officer

FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, the continued advancement of the company's general business development, research development and the company's development of forest-based carbon offsets. When used in this document, the words "anticipate", "believe", "estimate", "expect", "intent", "may", "project", "plan", "should" and similar expressions may identify forward-looking statements. Although ERA Carbon Offsets Ltd. believes that their expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include fluctuations in the marketplace for the sale of carbon credits, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our filings made with Canadian Securities Regulators.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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