ERA Carbon Offsets Ltd.

ERA Carbon Offsets Ltd.

December 18, 2009 19:00 ET

ERA Carbon Offsets Ltd. Option Re-Pricing Approved

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 18, 2009) - ERA Carbon Offsets Ltd. (ERA or the "Company") (TSX VENTURE:ESR) announces that, based on shareholders' approval received at its annual shareholder meeting on September 10, 2009, the Company has made application to the TSX Venture Exchange to re-price 1,150,000 previously granted incentive stock options (the "Options"). The Options were originally granted to insiders with an exercise price of $1.00; and are being re-priced to $0.41 per share, being the closing price as at the day before publication of the AGM notice. The Options were re-priced to bring them more in line with market prices of the Company's common shares so as to ensure that the interests of management are aligned with shareholders' interests and to link performance compensations to enhancement of shareholder value.

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 HSE-Entega, Rolling Stone Magazine, Shell Canada Ltd., Air Canada, the Motion Pictures Producers Industry Association, and the Globe Foundation.

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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