Second Quarter Of Fiscal 2009 Highlights:

Sold non-core assets of wholly-owned subsidiary, A&A Anderson Tank Services Ltd. (A&A)

Gross margin of CAD1,038,000 compared to CAD1,264,000 in second quarter of 2008

Contingency related to a material statement of claim for a motor vehicle accident

Established a line of credit with Royal Bank of Canada

“During the quarter we took steps to focus on our core grease trap and organic waste disposal business through the sale of the non-core assets of A&A Anderson Tank Services Ltd. Following the completion of this transaction, we also rebranded our remaining British Columbia assets as ORMI, in order to develop a cohesive national brand,” said Charles Buehler, chairman and chief executive officer of Organic Resource.

The increase in net income before taxes was due to the gain of CAD1,708,000 on the sale of A&A’s non-core assets. This gain was partially offset by approximately CAD180,000 in one-time costs related to the sale and rebranding of ORMI’s remaining assets in British Columbia from A&A to Organic Resource, as well as the relocation to a new Vancouver facility.

The decrease in revenue was largely attributable to the divestiture of A&A’s non-core assets as well as Organic Resource’s decision to exit the compactor rental business in January 2008.

Total gross margin for the period ended December 31, 2008 was CAD1,038,000, a decrease of 18% or CAD226,000 from CAD1,246,000 compared to the second quarter of last year. Gross margin as a percentage of revenue was 32% during the second quarter, compared to 33% during the same period last year. During the quarter, the company continued to use disposal sites in Ontario and New York that were sourced earlier this year, which contributed to higher margins in the Ontario market. The overall reduction in gross margin was due to the lower revenue, as well as the additional rent and one-time costs stemming from the relocation to the new Vancouver facility and the divestiture and rebranding of A&A’s non-core assets.

Cash flows from operating activities were CAD338,000 for the three-months ended December 31, 2008, compared to cash used in operating activities of CAD162,000 for the same period last year. The improvement was largely due to a CAD706,000 decrease in accounts receivablese following the divestiture of A&A’s non-core assets.

Net income before taxes for the six-month period ended December 31, 2008 was CAD1,818,000, an increase of CAD1,521,000 from CAD297,000 for the same period last year. Total revenue for the period was CAD7,265,000, a decrease of CAD258,000 compared to CAD7,523,000 for the six-month period ended December 31, 2007. Total gross margin for the six-month period ended December 31, 2008 was CAD2,555,000, an increase of CAD93,000 compared to CAD2,462,000 for the same period last year. Gross margin as a percentage of revenue was 35% compared to 33% during the six-month period ended December 31, 2007.

On February 3, 2009 the company received a statement of claim in the amount of CAD31 million pertaining to a traffic accident which occurred in September 2008. The claim by the injured party exceeds the combined limit of the company’s insurance coverage of CAD10 million. The outcome of this claim is not determinable at this time and accordingly, no provision has been established in the company’s consolidated financial statements for the period ended December 31, 2008.

On February 6, 2009, the company established a CAD2,000,000 revolving demand facility and a CAD500,000 term facility with the Royal Bank of Canada. The company also ended its relationship with Textron Financial Canada Ltd. and paid off the balance owing on its asset-based revolving loan.