ERA Carbon Offsets Ltd. Announces Restatement of the Third Quarter 2008 Interim Consolidated Financial Statements

VANCOUVER, BRITISH COLUMBIA, Aug 27 (MARKET WIRE) --
ERA Carbon Offsets Ltd. (ERA or the "Company") (TSX VENTURE: ESR)
announces that the Company's previously issued interim consolidated
financial statements for the third quarter ended September 30, 2008 will
be restated to reflect the changes made to the deferred revenue
recognized as of December 31, 2007.

The Company has identified that deferred revenue was misclassified and
should be recognized as revenue in the fiscal year 2007. According to the
Company's revenue recognition policy, the correction will result in a
reclassification of $204,230 deferred revenue to sales, therefore
reducing the deficit from $1,955,073 to $1,750,843 as of December 31,
2007. The Company will re-file its interim consolidated financial
statements and restated MD&A for the third quarter ended September 30,
2008 to reflect changes primarily relating to the above noted adjustment.
ERA's interim consolidated financial statements and MD&A for the third
quarter ended September 30, 2008, as previously published and filed,
should no longer be relied upon. The above changes have also been
reflected in the December 31, 2008 audited consolidated financial
statements and MD&A.

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
President
(604) 687 1779
kyle@stevensonir.com
www.eraecosystems.com

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