SACRAMENTO, CA and QUEENSLAND, AUSTRALIA, 5 May 2010 – ECO2 Forests Inc. (US Stock Symbol: ECOF) has entered into an agreement for Sycamore Park LLC to provide a $2 million investment into the company in several tranches over the next 12 months.

This tranche investment, on the back of the recently announced 14,000 acre US Sustainable Forest Program in Washoe County, will provide the kickoff capital for the first project within the program located in Smoke Creek, Nevada. Smoke Creek will see the planting and growth of a 2,000 acre forest of Kiri Trees. A total of seven similar projects form 14,000 acres of the program.

“This funding will provide capital not only for the development of the Smoke Creek project site but will solidify the ongoing operations of the company over the coming 12 months, allowing ECO2 Forests to focus on additional project delivery from our project pipeline, which is currently sitting at over 1.5 million acres in various proposed projects globally,” ECO2 Forests CEO Collie Christensen said.

“Sycamore Park identified ECO2 Forests as a company that meets our investment criteria for long term shareholder value. Their Global Forestry Plan is exciting and having closely examined the merits of their business model we had no hesitation in proceeding with this investment. We look forward to working closely with ECO2 Forests management to help maximise shareholder return,” said a Sycamore representative.

“It has been an extremely busy couple of months for us at ECO2 Forests as we continue to evaluate the potential projects that are being presented to us. This investment will allow our company to focus our efforts on delivering more projects like the US Sustainable Forest Program in Washoe County over the coming 12 months,” Christensen said.

“Working with the team at Sycamore, we look forward to building a greater platform for our future.”