Roots Sustainable Agricultural Technologies Limited advised that significant progress has been made to advance its international business development initiatives with a AUD 42,000 Root Zone Temperature Optimisation (`RZTO') sale to a Peony flower grower `Deer Country Farms' (`DCF') in Israel. The Company has also signed a binding letter of intent (`LOI') with FinePro Renewable Energy Ltd. (`FinePro') to advance the worldwide distribution of Roots' Irrigation by Condensation (`IBC') technology. Israeli Peony flower farm RZTO sale: Roots has secured a sale of an in-soil RZTO system worth AUD 42,000 to Deer Country Farms in Israel, a Peony flower grower situated in a mountainous area in Israel.

A deposit of AUD 25,000 will be paid to Roots immediately, with the balance of $17,000 payable upon delivery and installation. Roots will ship all relevant system equipment within 45 days of payment of the deposit. The growing of the flowers requires a tailor-made temperature protocol where at certain periods the soil is required to be cooled to below ten degrees Celsius.

Current growing methods are labour intensive and requires moving growing pots into a freezer in order to induce dormancy and then re-plant them back in the soil or pots. Roots' RZTO system will allow farmers to cool the soil to temperatures similar to the freezer, saving them the labour resources required to constantly move pots in and out of the freezer. Roots is confident its innovative technology will provide DCF with a more environmentally sustainable solution, significantly lower operating costs, and accelerated and healthier plant growth.

The sale to DCF in conjunction with the increasing level of uptake has provided the Company with opportunities to continue discussions with a number of potential collaborators. Roots anticipates that the sale with DCF will provide yet another catalyst to advance these discussions, as the effectiveness of its RZTO technology is realised across a large number of crops and agricultural settings.