ERA Carbon Offsets Ltd.
TSX VENTURE : ESR

ERA Carbon Offsets Ltd.

January 28, 2011 09:00 ET

ERA Carbon Offsets Shareholders Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 28, 2011) - The year 2010 was characterized by sustained growth and execution for ERA Carbon Offsets Ltd. ("ERA") (TSX VENTURE:ESR).

Highlights:

  • The Company raised $5,520,000 (CDN) in a non-brokered financing through the issuance of 7,360,000 shares at $0.75 per share
  • ERA advanced new projects in British Columbia and Africa, including a marquis project located on Denman Island which was developed with the participation of the Government of B.C.
  • The Company executed a 3 year $11,000,000 (CDN) Carbon Offset Sales Agreement
  • ERA's executive, management, and sales teams were bolstered through the recruitment of experienced professionals to address the Company's growing needs
  • The Company sustained a strong financial position throughout 2010
  • ERA's 2011 revenues will triple to at least $7,500,000 (CDN)

$11 Million Three Year Sales Agreement Executed

On December 13, 2010, ERA announced the execution of a Carbon Offset Sales Agreement with the Forest Carbon Group AG, in Germany. The agreement will see the delivery of over 1 million tonnes of validated and verified carbon offsets over a 3 year period, and ongoing sales in subsequent years are anticipated.

Denman Island Project Announced with B.C. Government

On October 12, 2010, the Honourable Barry Penner, Minister of the Environment, and ERA's C.E.O. Dr. Robert Falls, announced a unique private-public partnership regarding a unique project located on B.C.'s Gulf Islands. The Denman Island Project will protect and ensure the restoration of one of the province's most important ecozones, while generating hundreds of thousands of tonnes of carbon offsets. Mr. Alexander Zang, a representative of the offset buyer (Forest Carbon Group AG), participated in the Press Conference, demonstrating European support for ERA's programming and a growing appetite for high quality forest carbon offsets the Company produces.

Sixteenth Conference of the Parties (COP 16) and African Programming

ERA has been advancing opportunities to develop projects in Africa for several years. However, until recently, process barriers and policy uncertainties have impeded progress. This situation changed as a result of policy and business developments occurring during COP 16 in Cancun, which established key foundations for forest-based carbon offset fungibility in post 2012 trading mechanisms.

The projects ERA is developing in Africa are expected to produce over one million tonnes of carbon offsets per annum, which could be fungible in compliant markets in both Europe and the US. These projects would grow ERA's sales and revenues dramatically and further broaden the Company's international scope.

To support its African programming ERA has secured highly qualified partners in African project development and the banking sector. Details regarding ERA's African programming will be released in the first and second quarters of 2011.

New President, C.F.O. and Director Appointed

In November 2010, Mr. Frédéric Jacquemont was appointed as President of ERA Carbon Offsets Ltd. (Dr. Robert Falls remains the Company's C.E.O and Chairman). Frédéric's international career spans 19 years as an environmental researcher, business consultant and legal counsel for development agencies, environmental institutions, and carbon offset development companies. Before joining ERA, Frédéric was Legal Counsel for CarbonBase GmbH, based in Germany. Frédéric began research into climate protection and law at the University of Frankfurt/Main. Frédéric will be directly engaged in the day to day operations of the Company, and has been appointed as a director of the Company.

In March 2010, Mr. Jeff Calvert was appointed as C.F.O. and Director of Human Resources. Jeff has 20 years experience in sales, marketing and business development with international Fortune 500 companies and smaller, technology driven clean tech firms. Jeff joined ERA from Borealis Carbon Offsets, where he was founder and Managing Director. Jeff, a professional engineer licensed in Ontario, holds an MBA from Royal Roads University in Victoria, British Columbia.

North American Sales Team Established

In December 2010, ERA secured the services of Steve Baczko, to lead a new Sales and Marketing function for North America. Steve is well respected in the carbon space, and was Head of North American Voluntary and New Markets for EcoSecurities until 2010, when JP Morgan took control of the $300 million company. Steve will be supported by Aynsley Toole, formerly with Equator L.L.C., and will work with David Rokoss, ERA's Director of Business Development. This team will be establishing aggressive sales objectives for 2011, with a focus on both Corporate Social Responsibility (CSR) and pre-compliant markets.

Investor Relations Program Developed and Senior Capacity Secured

The main focus of ERA Carbon Offsets' investor relations plan is the education of the investment community concerning the magnitude and growth of the carbon industry, and more specifically ERA's stature and ability to play into it. Consequently, ERA is developing a strategy and operational plan for getting "the ERA story" out. The first step in this process was to secure Alex Langer to work on Investor Relations (IR) on a full-time basis. Before joining ERA, Alex worked in the investment community with Cannacord Financial. Over the next year Alex will be making presentations and participating in webinars with a range of parties in North America and in Europe. Alex will participate in these events with ERA's visionary co-founder Dr. Robert Falls.

ERA was also very pleased to announce in November 2010, that Mr. Paul DiPasquale joined the ERA team as a Senior Advisor. Paul brings to ERA a wealth of expertise and experience in both the brokerage and securities industries. Paul's career started with Richardson Securities in 1969 and he most recently served as Executive Vice President and Branch Manager for Canaccord Financial. Before this, Paul held executive positions at Brink, Hudson & LeFever Ltd., Yorkton Securities Inc., Haywood Securities Inc., Gardiner Watson Ltd., and Walwyn Stodgell.

International Emissions Trading Association (IETA) Membership and Participation

In Q2 2010, ERA became a member of IETA to support ERA's interests vis-a-vis government policy and programming, and other strategic industry matters. ERA participates regularly in IETA's Canadian Working Group, which closely monitors policy developments both in Canada and the U.S.

At COP 16 in Cancun, ERA sponsored and participated in two IETA side events - one underscored the critical role of ecosystem restoration in climate mitigation, the other announced the readiness of African countries for REDD (Reduced Emissions from Deforestation and Forest Degradation) projects. To ensure the success and profile of these sessions, ERA and IETA secured world experts from such organizations as the World Resources Institute, the French bank BNP Paribas, Wildlife Works Carbon, the Forest Carbon Group AG, and the Democratic Republic of Congo.

Sustained and Growing Revenues

ERA filed its 3rd quarter financial report, which reflected sustained revenues for carbon offset sales in 2010. Revenues grew from $450,000 in 2008, to $2,900,000 in 2009. Revenues in 2010 are expected to be slightly lower than in 2009. Revenues are expected to grow dramatically in 2011 based on contracted deliveries. Sales revenues in 2011 are expected to triple those of 2010.

Robert Falls, Ph.D., R.P.Bio., Chairman & Chief Executive Officer

About ERA Carbon Offsets Ltd.

ERA is a Canadian pioneer in forest restoration and conservation carbon offset projects. The Company's Community Ecosystem Restoration Program located in the Lower Fraser Valley, British Columbia, began in 2005 in the District of Maple Ridge, and has grown to include five communities including Metro Vancouver. ERA has delivered over 1,000,000 tonnes of carbon offsets to the voluntary market and is engaged in forest carbon projects in Canada, Africa, New Zealand and the Hawaiian Islands to supply the North American and the international voluntary and pre-compliant markets. ERA's clients and product users include Air Canada, Catalyst Paper, HSE – Entega, Rolling Stone Magazine, Shell Canada Limited, The Forest Carbon Group AG, and The Globe Foundation of Canada. ERA's carbon offsets are being validated to the ISO 14064, CCBA, PFSI-VER and VCS standards.

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

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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