SOURCE: Arrow Resources Development, Inc.

February 20, 2008 09:35 ET

Arrow Engaged to Develop Oil Refinery in Indonesia

NEW YORK, NY--(Marketwire - February 20, 2008) - Arrow Resources Development, Inc. (OTCBB: ARWD) has been engaged by PT. Kilang Pare-Pare Nusantara (Pare-Pare), an Indonesian company, to serve as financial consultant, investment banker and project manager for the development, construction and operation of Pare-Pare's proposed 200,000 barrel per day oil refinery to be located in Pinrang, South Sulawesi Indonesia. Arrow will receive a 50% equity interest in the overall project.

This project is in addition to the company's initial programs in South Konawe, located in the South East Sulawesi province of Indonesia, which includes the cultivation of eucalyptus and corn plantations as both an immediate and long term revenue generating operations.

The first of these plantations includes 72,000 hectares (ha), which includes the development of 40,000 ha to be planted exclusively with corn with an anticipated yield of 6.5 metric tons per hectare per harvest. This plantation will also include 18,000 ha will be 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.

Peter J. Frugone, CEO of Arrow Resources Development, Inc., commented that "these two projects represent both an entry onto the renewable side of the energy business as well as participation in the development of a refinery that will help increase production of the current standard, E-85. We believe that this will contribute to both the short and long-term goals for environmentally sound policies of Indonesia."

The second plantation operation is a total of 90,000 ha which includes the development of 33,000 ha with corn/eucalyptus 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.

Arrow Resources Development, Inc. and its joint venture partners plan on developing 10 plantations of 100,000 hectares each. The plantation will have 50,000 hectares dedicated to the cultivation of corn and the other 50,000 developed with corn and eucalyptus crops. Each of the 10 plantations will include one ethanol production facility with a planned capacity of 1,000,000 liters per day.

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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