FOR IMMEDIATE RELEASE                                                                                               9 JUNE 2008

Radicle Projects plc

("Radicle Projects")

Intention to launch an investment company, focusing on timber plantations in Australia and the Asia Pacific region, to be listed on AIM

The Board of Radicle Projects, the AIM quoted UK company involved in the acquisition and management of Australian agribusiness projects, is pleased to announce that it intends to launch a new investment company Radicle Timber Plantations ("Radicle Timber"), which will invest in plantation forestry assets in Australia and the Asia Pacific region.  

Radicle Timber intends to raise up to £40million and to admit its ordinary shares to trading on the AIM market of the London Stock Exchange ("AIM") and on the Channel Islands Stock Exchange ("CISX"). 

Radicle Timber will target projects that can developed on an environmentally sustainable basis, focusing on managed plantations with transparent operations. Radicle Investment Management Limited, ("Radicle Investment Management") a newly-formed subsidiary of Radicle Projects, will act as investment manager to Radicle Timber and will receive management and performance related fees for its services.

All of Radicle Projects' forestry assets will be owned by Radicle Timber upon its Admission to AIM. These assets include the Paulownia hardwood plantation and the BioForest investment. The forestry assets will be acquired by Radicle Timber at market value as determined by independent valuation, which is expected to be approximately £10m (AU$21m).  The board of Radicle Projects intend that the Company will no longer invest directly in forestry assets.

It is intended that a proportion of Radicle Project's shareholding in Radicle Timber will be placed with investors on admission to AIM, following which Radicle Projects expects to retain a shareholding in Radicle Timber of between 15% and 20%.

Blue Oar Securities plc will act as Nominated Adviser and Broker to Radicle Timber.

Myles Stewart-Hesketh, who holds board positions on agri-science companies and institutional investment organisations in Australia and internationally, will be appointed as Chairman of Radicle Timber.  Tim Bennett and Peter Johnson, Directors of Radicle Projects, will also be appointed Directors of Radicle Timber.  

Radicle Projects' Chairman, Michael Finniston, said "The board of Radicle Projects believe that the separation of its forestry assets into Radicle Timber, its retained interest in Radicle Timber and the management fees Radicle Projects will earn, make this development a positive one for Radicle Projects' shareholders."

Tim Bennett, CEO of Radicle Projects said, said "We believe this development will benefit Radicle Projects and its shareholders by allowing Radicle Projects to diversify its forestry holdings through its shareholding in Radicle Timber, smooth cashflows, increase cash income, and build forestry management fees on an ongoing basis." 

"The establishment of Radicle Timber marks an important milestone for the development of Radicle Projects and its subsidiaries as we continue our evolution into a broadly based owner and manager of soft commodities.  I am very excited by the prospects for a dedicated timber investment company."

Commenting on this new venture, Myles Stewart-Hesketh of Radicle Timber, said:

"By acquiring sustainably managed plantation forestry assets in Australia and the Asia Pacific region, Radicle Timber will offer prospective shareholders an opportunity to gain exposure to real assets". 

-END -

NOTES TO EDITORS

Radicle Timber's forestry assets on Admission to AIM

Radicle Projects will inject its forestry assets valued at approximately £10m. These will include assets which are established and mostly semi-mature, including:

• more than 600 hectares of Paulownia, expected to produce cash from harvest proceeds over the next six years; 

• 210 hectares of plantation silky oak and she-oak forests typically used for energy inputs and activated charcoal in addition to cabinet timber. These assets are expected to generate income in the near term with a large cashflow peak in about 14 years; and

• 23 one hectare units of eucalyptus across four States which are managed by Timbercorp Agribusiness Investment Managers. These trees will be chipped and exported and are expected to be harvested in the next three years.

About Radicle Projects plc

Radicle Projects PLC (Epic: RDP.L) was established in 2004 to acquire interests in Australian agribusiness projects and was admitted to trading on the AIM market of the London Stock Exchange on 4 August 2005.

Through the acquisition of interests in Australian agribusiness projects with strong business fundamentals, sound market prospects and cash generative profiles, Radicle Projects has established a track record of delivering income to shareholders by way of dividends and creating capital growth.

Based in London, with offices in Melbourne, Australia, Radicle Projects provides an opportunity for investors to gain exposure to cashflow streams and assets that are not correlated to the mainstream asset classes of equity, property and cash. For further information, please visit www.radicleprojects.com

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