Sino Agro Food Inc (fka SIAF)

[Florinda]

Chad, thanks a lot for the picture of the new fishery. I was wondering if you could clarify a bit more what it is we are seeing in this picture, as well as clarify a couple other related points. For instance, back on May 20th when a press release was first put out, it said:

"the demonstration farm will be capable of producing up to 35 Metric tons per year."

What is the capacity of the fishery in the picture?

Also, in that same announcement it listed all the following as part of the first completed fishery:

"* Grow-out modules that will have 8 modular tanks each measuring 7m x10m x 2.1m of which will be individually operated.

* Built-in filtration and equipment compartments housing the water treatment equipment that will filter and treat the water (including treatments of all solid wastes and soluble wastes).

* Heating units to heat up the tank water and maintain proper temperatures during the winter months.

* Infrared disease control unit, O3 water treatment unit and foam eliminators.

* Post harvesting and harvesting tanks

* A Nursery Farm consisting of the equivalent capacity of 4 Grow-out tanks (i.e. in smaller units) with the capacity to house all year round up to one million fingerlings (growing from 2 cm and upward to 10 cm) before they will be transferred to the Grow-out modules.

* Quarantine farm; with the equivalent capacity of 2 grow-out tanks (but in smaller units).

* Laboratory for treatments applied to all incoming fingerlings.

* Administrative office, feed storages, visitors show units and all associated infrastructures."

http://www.azobuild.com/news.asp?newsID=10384

I was particularly interested in hearing whatever clarification you could bring to the "post harvesting tanks" and the "nursery farm tanks." These suggest that the system is designed to essentially never have any down time once operations are underway. In other words, in sounds like new fingerlings can be ordered and delivered prior to the fish maturing for market are actually ready to be sold. Likewise, it implies that as soon as the latter have reached maturity the new fingerlings can be transferred over to the grow tanks with no delay. Yet, obviously, to do this the mature fish have to have a place to be moved to. My assumption is that that is what the "post harvesting tanks" are all about, namely, to temporarily house the mature fish prior to them getting sold into the market, thus enabling the system to work at optimal efficiency in terms of continuously growing more mature fish. Is this a correct array of deductions?

Finally, as for the picture, does it include both the nurseries and the post harvesting tanks in it?

If you have time and the inclination, I'd very much appreciate hearing your thoughts on these matters. In any event though, thanks for doing such a great job in keeping a healthy flow of information about SIAF moving back and forth between management and investors. It's a standard of communication other companies and IR firms ought to emulate in my opinion.

And, yes, a happy holidays to you as well.

Steve