ERA Carbon Offsets Ltd. Announces Receipt of First $750,000 Payment From $4,000,000 Sales Agreement

VANCOUVER, BRITISH COLUMBIA, Aug 27 (MARKET WIRE) --
ERA Carbon Offsets Ltd. (TSX VENTURE: ESR) the Company, through its
wholly owned subsidiary, ERA Ecosystem Restoration Associates ("ERA"), is
pleased to announce that it has received the first $750,000 USD payment
specified under a previously announced Verified Emissions Reductions
Sales Agreement (the "VERSA").

The payment is the first of five bi-monthly payments specified under the
VERSA in which ERA is required to deliver 300,000 tonnes of validated and
verified emission reductions ("VERs") in the third and fourth quarter of
2009, and 200,000 tonnes of VERs in the first quarter of 2010, at an
average price of $8.00 USD per tonne.

The VERs sold will be validated and verified to the ISO 14064-2 and
Climate, Community and Biodiversity Alliance ("CCBA") standards. ISO
14064-2 is the proposed requirement for verification under the Canadian
Federal Offset System for Greenhouse Gases (as published on June 10,
2009). CCBA is the leading voluntary international standard for projects
that simultaneously minimize climate change, support sustainable
development and conserve biodiversity.

The VERs sold, are generated through ERA's Community Ecosystem
Restoration Program ("CERP") which has been operational in the Lower
Fraser Valley of British Columbia since September 2005. CERP is a large
scale urban forest restoration program that began in the District of
Maple Ridge in 2006, which now includes projects in the District of
Mission, the City and Township of Langley, and within Metro Vancouver.
The CERP program is supported by the sale of VERs generated through ERA's
ecosystem restoration and reforestation endeavors in degraded riparian
areas. The VER's will be registered on Markit Environmental Registry, an
international carbon offsets registry which supports transactions in high
quality voluntary carbon offsets through a credible, externally audited
retirement facility. VERs are utilized by ethical organizations looking
to reduce their carbon footprint, support climate mitigation, and advance
their sustainability endeavors.

About ERA Carbon Offsets Ltd.

ERA is a Canadian based pioneer in forest-based carbon offset programs
and project development. Through its subsidiary, ERA Ecosystem
Restoration Associates Inc., ERA produces significant measurable carbon
sequestration benefits that are validated and verified to international
standards and sold to purchasers interested in offsetting their
greenhouse gas footprints as a means of mitigating the effects of climate
change. ERA is producing EcoNeutral(R) offsets from the Company's
"Community Ecosystem Restoration Program" (CERP) in the Lower Fraser
Valley, near Vancouver, British Columbia. ERA is also developing projects
in Africa, South America, and the United States. ERA has generated
ISO-validated and verified EcoNeutral(R) carbon offsets from the CERP
project to supply clients and offset users that include Rolling Stone
Magazine, Shell Canada Ltd., Air Canada, the Motion Pictures Producers
Industry Association, and the Globe Foundation.

Additional information on ERA can be found on the corporate website
www.eraecosystems.com or by contacting investor@econeutral.com.

On behalf of the Board of Directors of ERA CARBON OFFSETS LTD.

Robert Falls, Chief Executive Officer

FORWARD LOOKING STATEMENTS: This document includes forward-looking
statements as well as historical information. Forward-looking statements
include, but are not limited to, the continued advancement of the
company's general business development, research development and the
company's development of forest-based carbon offsets. When used in this
document, the words "anticipate", "believe", "estimate", "expect",
"intent", "may", "project", "plan", "should" and similar expressions may
identify forward-looking statements. Although ERA Carbon Offsets Ltd.
believes that their expectations reflected in these forward looking
statements are reasonable, such statements involve risks and
uncertainties and no assurance can be given that actual results will be
consistent with these forward-looking statements. Important factors that
could cause actual results to differ from these forward-looking
statements include fluctuations in the marketplace for the sale of carbon
credits, the inability to implement corporate strategies, the ability to
obtain financing and other risks disclosed in our filings made with
Canadian Securities Regulators.

Neither TSX Venture Exchange nor its
regulation services provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.

Contacts:
Stevenson & Associates Investor Relations Ltd.
Kyle Stevenson
Investor Relations
(604) 687 1779
kyle@stevesonir.com
www.eraecosystems.com

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