Trading Update

On 31 March 2009, the Company announced that the Board had been concentrating on implementing cost reductions and developing strategies to bring the Company's portfolio of agricultural assets through to production as quickly as possible so as to increase cash flow. The Board can report that the cost reduction program has progressed well but at this stage the Company is yet to generate profitable cash flow from its agricultural assets due to a number of factors including reduced grape and wine sales and a poor end to the wheat season, which has resulted in a downgrade in wheat quality and price. Radicle has also been impacted by the failure, and subsequent liquidation, of Timbercorp Limited, a manager of certain of the Company's assets.

There has been a consequential negative impact on the Company's working capital position which is being monitored closely. Radicle's cash balance as at 31 August 2009 was £0.66 million, plus £0.19 million of undrawn note funds. The Board also confirms that the Company is not in breach of any of the terms or covenants of the Radicle Secure Convertible Loan Note.

The Board is confident of reaching agreement with noteholders to restructure the convertible loan note and concurrently exploring funding options with potential investors to secure its capital base.

It is the intention of the Board to continue to focus Radicle's skills and experience on agribusiness project selection and management, creating a more revenue generative agribusiness management, development and services business in future. To that end the Company is in early discussions with a number of parties with strategic interest in Australian agribusiness investment, with a view to identifying both potential clients and shareholders.

Further announcements will be made in due course.