Herakles Farms Announces Update on Its Cameroon Palm Oil Subsidiary SGSOC

June 13, 2012

Company to Proceed with Phased Development Approach to Ensure Sustainable, Environmental and Socially Sensitive Growth

  By Herakles Farms - Herakles Farms, a New York-based agriculture company operating in Ghana and Cameroon, today announced new details for its Cameroon palm oil subsidiary, SG Sustainable Oils Cameroon (SGSOC), and its decision to pursue a phased development approach to allow its many stakeholders to better understand the social and environmental benefits and impacts and to be responsive to the concerns of all stakeholders that may arise. To date, SGSOC has cultivated less than 30 hectares in the Nguti, Mundemba and Toko Sub-Divisions of South West Cameroon.  Specifically, this development entails three nurseries near the villages of Talangaye, Lipenja I, (Batanga) and Fabe, with 70,000 mature trees currently ready for transfer to the field.  SGSOC recently conducted pre-clearing studies on the initial 2,000 hectares of land under evaluation for field-planting development.  These studies included a detailed examination of the flora, fauna, and habitat of the land adjacent to the Talangaye nursery in order to ensure the maintenance and protection of all environmental and social high conservation value areas. SGSOC committed to development in Cameroon in September 2009, when the Company and the Government of Cameroon signed an agreement to develop approximately 70,000 hectares of oil palm in an area classified by the Government as secondary forest in the South West Region.  The area had suffered economically in large part because of its isolation from services and market opportunities. Since the land in the region had been logged and farmed repeatedly in the past, the Government of Cameroon responded to the communities' needs by designating the land for commercial, agricultural and economic development. SGSOC conducted an Environmental and Social Impact Assessment (ESIA) for the area and submitted it to the Government of Cameroon in August 2011.  The Government thereafter issued its approval through a Certificate of Environmental Conformity in September 2011.  In an April 2012 ruling, the Mundemba High Court affirmed that SGSOC had complied with these environmental and land-related Government regulations and that the Company has been in order with such requirements for legal operation in Cameroon. While SGSOC expects that approximately 60,000 hectares may ultimately be suitable for planting, before it proceeds with transferring its trees from the nursery to the field, it has committed to performing additional pre-planting studies designed to ensure that the Company has thoroughly mapped all high conservation value sites, important lands for village use, buffer zones and fulfilled other obligations to key stakeholders. In parallel to this phased approach, SGSOC is also helping to support rural employment and development, upgrading infrastructure including roads and enhancing critical services such as healthcare and schooling.  For instance, together with the local organization of medical doctors, WecCare Foundation, a program was recently completed in the villages of Talangaye and Ayong near Nguti, and Lipenja I, Batanga and Meangwe near Toko.  Consultations, informational booklets, medication and a range of selected surgeries with appropriate follow-up were included in the program.  In terms of education, the Company donated textbooks to 35 secondary schools in all nine subdivisions in the Ndian Division.  SGSOC continues to develop its longer-term medical and educational programs for the local villages in the area. "Herakles Farms is committed to listening to the concerns of all stakeholders and modifying our practices where necessary. We want to be a responsible leader in developing sustainable agriculture that prioritizes community development," stated Bruce Wrobel, CEO of Herakles Farms. "We are focused on balancing our commitments to the Government regarding job creation and economic development with the specific and important interests of the local communities, as well as NGOs and other stakeholders.  We are proceeding in systematic phases in order to be responsive to all concerned.  Going forward, we want to foster greater openness, transparency and collaboration in our activities." About Herakles Farms Established in 2009, Herakles Farms is focused on identifying and implementing solutions to important food security issues in Africa. The management team has a track record of developing environmentally and socially sustainable projects that result in economic development in some of the least-developed African countries, and has received numerous awards for its work. Previously known as SG Sustainable Oils (SGSO), the Company has been an active member of the Roundtable on Sustainable Palm Oil (RSPO) since 2008. www.heraklesfarms.com Contact Information: Ms. Delilah Rothenberg Herakles Farms 277 Park Avenue, 40th Floor New York, NY 10167 (212) 351-0176 Rothenberg@heraklescapital.com SOURCE Herakles Farms