OPERATIONS

Dominion Farms Limited is an American-owned, Kenyan-registered company that operates a modern, irrigated farm on a 17,000-acre leasehold in western Kenya. The companyís products include long-grain rice, tilapia fish, rotation crops and a number of by-products related to those crops. By virtue of its remote location, the farm is highly vertically integrated and relies upon crop by-products for much of its fertilizer and animal feed.

Irrigated rice production commenced in 2006 and acreage under rice continues to increase as the balance of the leasehold is reclaimed and developed. Dominionís dam on the Yala River forms an 1,100-acre water storage reservoir for commercial and local domestic uses and also serves as a source of energy for a hydro-electric plant now under construction. Eight miles of reinforced dikes downstream of the dam protect the farm from seasonal flooding and miles of main canals, secondary canals, check structures and gates provide irrigation water to the rice fields. A major canal carries oxygen-rich water directly to Lake Kanyanboli in order to recharge this important source of domestic water that was previously in decline due to stagnation.

Dominionís Prime Harvest Rice and Tilapia are recognized for their high quality and freshness. As most of our rice reaches the consumer in one and two-kilogram bags less than one month after it is harvested, it compares favorably with imported rice shipped in bulk from Asia and handled by multiple parties before being packaged and sold at retail. Prime Harvest Tilapia is currently sold as whole fish in northern Nyanza Province. Commencing in mid-2010, fresh tilapia filets (as well as whole fish) will be available in grocersí coolers throughout the Province and expanding to include most of Kenya by 2011.