News and Press Releases

Sino Agro Food, Inc. Begins Construction on First Demonstration Fishery Farm in China using the Company’s Recirculating Aquaculture System Technology

May 19, 2010

GUANGZHOU, China--()--Sino Agro Food, Inc. (Pink Sheet: SIAF), an emerging integrated, diversified agriculture technology and organic food company with subsidiaries operating in China, is pleased to announce it has begun construction on its first major demonstration fish farm using the Company’s own “A Power” Recirculating Aquaculture System (“RAS”) and technology.

“We are now executing our Fishery business plan by beginning construction on our first fully operational demonstration farm in Enping, China. Once completed the farm will serve as the Company’s “proof of concept”

The Company has the exclusive rights to license “A Power” RAS technology in China which is based on the Aquaculture Re-circulation System (RAS) that Mr. Solomon Lee, the CEO of Sino Agro Food, Inc. and his team have many years of experience with while serving as the CEO of Irama Edaran Sdn. Bhd. Mr. Lee and his team helped to pioneer the “A Power” RAS and consolidated the RAS being used throughout the South Pacific and Australia region. Previous agreements allow Sino Agro Food, Inc. to market and distribute “A Power” RAS technology exclusively throughout mainland China.

The demonstration farm is being built on 13,200 m2 of land, or 3.2 Acres. The site is located adjacent to the Company’s HU plantation in Enping, China. The 6,000 m2 demonstration farm will be housed in two pre-engineered metal frame buildings which are fully insulated. The additional infrastructure improvements such as roads, drainage, dams and power supplies recently built will be shared coordinately with and beneficial to the Company’s HU operations.

Site work has commenced with clearing, leveling and utilities being installed at the location. The Company has also completed all required water quality, quantity of inflow and soil testing at the site.

The Demonstration Farm will provide chemical and pollution free organic fish and fish products. The system recycles water at 120 m3/ 0.5 hour, or the equivalent of 48 times per day. Rate of water usage per day will be less than 2.5% and power consumption at less than 5% of the overall annual production cost making the operation one of the most efficient fishery operations in China. All wasted water (projecting 0.25% / day’s tank water) will be used to fertilize the adjacent HU Plantation. Current production will consist of Sleeping Cod, Flat head fish, Fresh water Big head Prawns and a combination of 5/6 other common Chinese species. With stocking density of 2.5Kg per /M3 the demonstration farm will be capable of producing up to 35 Metric tons per year. The site once completed will consist of the following:

  • Grow-out modules that will have 8 modular tanks each measuring 7m x10m x 2.1m of which will be individually operated.
  • Built-in filtration and equipment compartments housing the water treatment equipment that will filter and treat the water (including treatments of all solid wastes and soluble wastes).
  • Heating units to heat up the tank water and maintain proper temperatures during the winter months.
  • Infrared disease control unit, O3 water treatment unit and foam eliminators.
  • Post harvesting and harvesting tanks
  • A Nursery Farm consisting of the equivalent capacity of 4 Grow-out tanks (i.e. in smaller units) with the capacity to house all year round up to one million fingerlings (growing from 2 cm and upward to 10 cm) before they will be transferred to the Grow-out modules.
  • Quarantine farm; with the equivalent capacity of 2 grow-out tanks (but in smaller units).
  • Laboratory for treatments applied to all incoming fingerlings.
  • Administrative office, feed storages, visitors show units and all associated infrastructures.

Mr. Lee Solomon, Sino Agro Food, Inc. CEO, stated, “We are now executing our Fishery business plan by beginning construction on our first fully operational demonstration farm in Enping, China. Once completed the farm will serve as the Company’s “proof of concept” by providing Chinese businessmen, investors and Government officials with the ability to tour and understand our operation. Our goal is to show that our system will efficiently produce quality Organic chemical and pollution free fish. Our system can be constructed inland as long as there is a viable source of water providing the ability to build additional farms in key areas where logistics are a problem. This will bring fresh, high quality fish products to almost anywhere in China. By building fish farms near major rural areas the Company can eliminate much of the transportation and logistics costs currently associated with aquaculture fishing operations in China. This also reduces the Company’s carbon footprint while producing a product of the highest quality at production costs similar to more inefficient methods currently in use. Though we are currently in the earliest stages of start-up operations, I believe in the years to come our fishery segment will become the single largest revenue source for the Company due to the size of the aquaculture industry in China and its need for modernization.”

ABOUT SINO AGRO FOOD, INC.

Sino Agro Food, Inc. (“SIAF”) (http://www.sinoagrofood.com) is an integrated, diversified agricultural technology and organic food company focused on developing, producing and distributing agricultural products in the Peoples Republic of China. The Company intends to focus on meeting the increasing demand of China’s rising middle class for gourmet and high-quality food items. Current lines of business include the manufacture and distribution of Bio-Organic Fertilizer and Stock-Feed, as well as, fisheries, dairies, and Hylocereus Undatus plantations. SIAF’s products are produced to meet the high organic quality standards of the United Kingdom. SIAF is owner of a patented process; the conversion of corn stalk into high quality feed for livestock and is the “Master Licensee” for China with exclusive right to a patented Bacterial used in converting food based agriculture produce wastes into nutritional feed products that are also applicable in the manufacturing of Bio-Organic fertilizer. The Company also holds the “Master License” for China on a modern re-circulating Aquaculture Technology “A Power RAS Technology” that has the capacity to commercially grow quality table fish and seafood free from chemical and pollution in enclosed modules on land in a system designed to promote economic sustainability and viability. Currently the Company has total employment of 520 persons of which 60 are skilled and experienced management staff.

FORWARD LOOKING STATEMENTS

This release contains certain “forward-looking statements” relating to the business of SIAF and its subsidiary companies, which can be identified by the use of forward-looking terminology such as “believes, expects” or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. These forward-looking statements are based on SIAF’s current expectations and beliefs concerning future developments and their potential effects on SIAF. There can be no assurance that future developments affecting SIAF will be those anticipated by SIAF. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. SIAF undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Contacts

Sino Agro Food, Inc.
CEO Mr. Solomon Lee
Phone: 86-20-22057860
info@siafchina.com
or
Investor Relations (US and Europe)
Mr. Chad Sykes
Chad.Sykes@sinoagrofood.com