All Shares issued pursuant to the Offering and any Warrant Shares issued upon exercise of any Warrants will be subject to a hold period in accordance with the policies of the Exchange and applicable securities laws.

Finder’s fees may be payable in connection with the Offering in accordance with Exchange policies. Net proceeds of the Offering will be used by the Company for the expansion of its salmon farming operations in China and Canada and working capital purposes to market the technology internationally.

This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States or to or for the account or benefit of US persons (as such terms are defined in Regulation S under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), absent registration or an exemption from registration. The securities offered have not been and will not be registered under the U.S. Securities Act or any state securities laws and, therefore, may not be offered for sale in the United States, except in transactions exempt from registration under the U.S. Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Geir Spiten, President of AgriMarine Norway said, “We are confident that the Letter of Intent is the first step in establishing a business relationship with Marine Harvest aimed at the commercialization of AgriMarine’s technology for sustainable aquaculture in Norway. This new project follows previous announcements of two other projects in conjunction with Norwegian salmon companies that aim to demonstrate the economic benefits of the AgriMarine System over conventional net cage systems”.

Cato Lyngøy, Group Technical Manager Technology & Environment, Marine Harvest said, “We look forward to working with AgriMarine to establish the first application of the AgriMarine System in Norway during the current production year. Our objective is to test AgriMarine’s technology to support semi-contained postsmolt production of fish up to 1 kg”.

“Establishing a strategic relationship with a recognized industry major and receiving industry validation is a priority for AgriMarine’s management. Marine Harvest is the world’s largest farmed salmon producer and we are confident of the benefits that our system will bring to the industry”, added Mr. Spiten.

In order to accommodate the Company’s largest shipment to date of Canadian salmon ova, AgriMarine recently completed Phase 2 of its plan to modernize its hatchery. With the installation of new Recirculating Aquaculture System (RAS) technology, the Company will be able to expand its smolt production capacity to 5 million annually through greater efficiency in the use of its already impressive ground water resources. This modernization lays the groundwork for future increased salmon harvests and puts the Benxi hatchery on par with the latest hatchery technology anywhere in the world.

“Despite world-wide salmon price volatility in the markets in 2011, we are still seeing strong demand for our locally produced, fresh and frozen fish products, which are free of import tariffs, duties and transatlantic transportation costs”, remarked Richard Buchanan, President and CEO of AgriMarine Holdings. “We have a progressive, planned approach to increase fish production in our Chinese farms as we focus our efforts into growing distribution channels.”

AgriMarine’s strategic position in China makes it the leader in local salmon production. The next salmon harvest is scheduled for Q3, 2012.

First Closed Containment Floating Salmon Farm Launched in Canada

The Company launched its first commercial scale, solid-wall marine tank for its salmon rearing operation in Campbell River, British Columbia. The Middle Bay facility is operated in conjunction with Middle Bay Sustainable Aquaculture Institute (“MBSAI”). This milestone marked the culmination of years of research and development into alternative sustainable technologies for salmon farming.

The tank was stocked with 56,000 Chinook salmon juveniles who have grown from 35 grams to an average of 1.7 kg in 12 months and are in optimal health, without the use of antibiotics or therapeutics. The AgriMarine waste removal system is keeping solid waste from polluting the surrounding marine environment and the Company is pleased to report the system’s effectiveness in preventing mammal predator conflicts.

The Company’s Middle Bay Project received further funding from Sustainable Development Technology Canada (“SDTC”). SDTC increased their contribution to the Middle Bay Project from the $2.36 million previously committed to a maximum of $5.77 million.

AgriMarine subsequently signed a multi-year supply agreement with a major US retailer for the sale of the Chinook salmon raised in the Middle Bay facility. Additional tanks are scheduled for installation in 2012.

AgriMarine’s Flagship Salmon Farm in the People’s Republic of China – Expansion of Tanks and Salmon Sales

AgriMarine’s main rearing facility in Benxi, China, had its second successful harvest of salmon trout which was sold to the 5-Star restaurant and hotel service industry throughout China. With crops of Pacific Steelhead trout, Chinook or King salmon and Coho salmon, each tank has the capacity for 50,000 to 75,000 fish with a farm output of between 231 to 338 metric tonnes per harvest cycle (14-18 months). In China, current production capacity at the Company’s hatchery is 2.4 million fingerlings and inventory includes 100,000 Chinook salmon now in production, with an additional 600,000 Chinook and Coho juveniles.  In December, 1,000,000 Coho eggs were shipped to the hatchery, and an additional 800,000 Chinook eggs are expected in the first quarter 2012.

One additional floating solid-wall tank was installed with another scheduled for deployment in Q1, 2012. The Company will continue to focus on tank deployment in 2012 and increasing salmon sales by entering the retail market with its local supply of Pacific Salmon, reared in non-polluting Clean Technology.

Technology Licensing in Europe

With proven technology and harvests underway, AgriMarine established a subsidiary in Norway in order to access the Norwegian and European salmon markets. With concession applications now awaiting approvals from the Norwegian Government, AgriMarine Norway AS is working with two salmon producing companies to demonstrate the environmental and economic advantages of the AgriMarine System in that country.

Trial Projects for Expansion into New Species

The Company entered into a joint venture with the Zhoushan Fisheries Research Institute in the People’s Republic of China (ZFRI) for a commercial scale research project for the rearing of Large Yellow Croaker fish in a solid-wall containment system.  The joint venture project is an important step for the Company as it advances its technology into other high value warm water species in China.  The first harvest of Yellow Croaker commenced prior to the 2012 Spring Festival.

With a Research & Development Agreement with Tokai University in Japan, AgriMarine also initiated a project to rear Bluefin tuna on a commercial scale, using AgriMarine’s proprietary solid-wall closed containment systems. The Company is currently investigating appropriate sites for the trial project.

Research and Development

AgriMarine appointed world-class scientists with appropriate life-time aquaculture expertise and experience in both industry and academia to join the Company’s Scientific Development Committee. The Committee advises AgriMarine’s Board and Management on matters of fish health, disease prevention, husbandry, applied science and technology as it pertains to the AgriMarine System. Committee Members Dr. Albright, Dr. Kay and Dr. Leong, focused on developing appropriate vaccines for a disease-free culture of salmon and Rainbow trout. To this end, the Company, in association with the Pearl River Fisheries Research Institute in Guangzhou, developed fish vaccines not currently available in China.

The Company reports that, in conjunction with the holding of its AGM, each of Richard Buchanan, John H. Buchanan, Dr. Lawrence Albright, Harry L. Knutson, D. Greg Hall and Sean Wilton were elected to the Board of Directors (the “Board”) of the Company.

In addition, at the AGM shareholders also approved the continuation by the Company of its current rolling share option plan as amended.

Immediately following the AGM, the Board met in connection with the appointments made for each of its standing committees and re-appointed the following Company officers:

• Richard Buchanan: President, Chief Executive Officer and Corporate Secretary;
• Frank Guo: Chief Financial Officer and Vice President

The Company also reappointed Harry Knutson as Chairman of the Board. The Company reconstituted the Audit and Governance Committees as follows:

• Audit Committee: John Buchanan (Chair), D. Greg Hall, Harry Knutson
• Governance Committee: Harry Knutson (Chair), D. Greg Hall

Robert K. Walker, President of AgriMarine Industries, spoke to the Committee about the Company’s first marine-based, solid-wall containment salmon farm in Canada. The Company’s demonstration farm in Campbell River is garnering attention from various environmental groups, industry players and retail grocery chains from Canada and abroad who are interested in the Company’s sustainable aquaculture systems and salmon products.

Mr. Walker discussed the AgriMarine System’s environmental benefits over net cage salmon farming and its operational benefits over land-based systems. The AgriMarine System is currently the only technology that bridges land-based systems and open net cages available today. Not only can current net-cage farms be converted to the AgriMarine systems, but salmon aquaculture could be expanded throughout BC in regions which formerly could not, for social, economic or environmental reasons, support net-cage farming. Currently, this is the only solution where the existing socio-economic infrastructure can be kept intact.

Other witnesses from Tides Canada Foundation, Sustainable Development Technology Canada (SDTC) and JLH Consulting have presented to the Committee and have expressed their support towards closed-containment salmon aquaculture. These groups have noted that closed-containment has the potential for major environmental benefits in salmon aquaculture.

Summary of the Incentive Program
The Incentive Program will be open for a 20-day period (the “Exercise Period”) that will run from December 1st through December 21, 2011. During the Exercise Period, holders who exercise their Eligible Warrants in accordance with the terms of the Incentive Program will receive one common share purchase warrant (an “Incentive Warrant”) in addition to the common share issuable under the current terms of the Eligible Warrants. Each Incentive Warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.25 for a period of one year from the date of issue.

A letter detailing the terms and conditions of the Incentive Program and the method of exercising the Eligible Warrants will be sent via electronic and regular mail to the registered address of each Eligible Warrant-holder, along with a subscription agreement to be completed by Warrant holders in relation to the issuance of the Incentive Warrants (collectively, the “Exercise Package”). The Exercise Package will be available on the Company’s website at www.agrimarine.com. Holders of Eligible Warrants are welcome to contact the Company directly to request an Exercise Package.

Assuming exercise of all Eligible Warrants under the Incentive Program, the Company would receive gross proceeds of up to $3.4 million, issue up to 11,320,510 Common Shares pursuant to the exercise of the existing Warrants and issue up to 11,320,510 Incentive Warrants. Proceeds from the exercise of the Eligible Warrants will be used for general working capital purposes.

As part of the Incentive Program, the Company will pay cooperating parties who assist with contacting Eligible Warrant-holders a cash incentive of 2% on the total dollar value of warrants exercised by their clients, with a minimum commission of $50 per warrant holder, subject to compliance with TSX-V policies.

Eligibility
The Warrants eligible under the Incentive Program were originally issued pursuant to a non-brokered private placement which closed in tranches on the following dates:

All Incentive Warrants issued will be subject to a hold period pursuant to applicable securities regulations commencing on the date of issuance of the Incentive Warrants. Any common shares issued upon the exercise of the Incentive Warrants within the hold period will be similarly restricted from trading for the balance of the hold period.

Insiders, Directors and Officers of the Company are excluded from participating in the Incentive Program. The Eligible Warrants are not listed on any stock exchange, nor will the Incentive Warrants.

If a Warrant holder elects not to exercise his or her Warrants prior to the end of the Exercise Period, such unexercised Warrants will remain outstanding and will continue to be exercisable for Common Shares on the same terms applicable to such Warrants as they existed prior to the Incentive Program.

“Our 5th floating solid-wall closed containment tank at Benxi is already in the water and we are now working to deploy our 6th tank in early 2012. Although Norwegian salmon prices have dropped in the last couple of months, our Eco-Salmon™ is being recognized for its freshness, superior taste and environmentally sustainable rearing practices”, said Richard Buchanan, President and CEO of AgriMarine. “We are seeing more awareness of eco-labels and certifications than ever before”.

Salmon imports to the PRC are subject to added import taxes, air freight charges and additional inspections and quarantines, giving AgriMarine’s local salmon production a considerable advantage. Mr. Buchanan added, “By adding more tanks, we are not only increasing production capacity but we are also ensuring that we can deliver fresh salmon year-round to the Chinese market”.

Representing AgriMarine in the Trade Mission is the Honourable John D. Reynolds, PC who along with two hundred and fifty representatives from more than 120 companies and organizations representing a cross section of business sectors traveled to China this week to promote the Province of BC.

The Premier’s Mission -Securing Jobs for British Columbians- had three goals in mind: strengthening our existing relationships in the Asia-Pacific region; opening new doors; and setting the stage for future opportunities with China and India. Areas of focus in China were transportation, international education, mining, forestry, liquefied natural gas, seafood promotion, and technology. Premier Clark met with government officials and business leaders in Beijing, Shanghai, and Guangzhou.

The Hon. John D. Reynolds commented on his role during the Trade Mission, “As Senior Strategic Advisor for AgriMarine, I emphasized the importance of building relationships between Canada and the PRC, promoting cooperation and trade and laying the groundwork for future business opportunities.” He added that, “AgriMarine has brought Canadian-developed, Clean Technology for environmentally sustainable salmon farming to China. This Trade Mission enabled AgriMarine to raise its profile in China and assisted in promoting its Eco-Salmon™ products. AgriMarine’s salmon trout produced in its Benxi farms was featured during the BC Alumni Ambassador Reception Held at the Westin Chaoyang Hotel in Beijing.”

The GOAL conference brings together over 400 of the world’s top seafood executives, including 120 from Chile, to discuss topics related to aquaculture production, global markets and potential impediments to sustainable growth. Representing AgriMarine at the conference will be Mr. Phil Fitzpatrick, Senior Advisor, who will be addressing the conference delegates to discuss the environmental benefits and operational efficiencies of the AgriMarine System™, with a presentation titled “Aquaculture for a Changing World”. “Double in a decade –responsibly” is this year’s conference theme, which fits well within AgriMarine’s sustainable and efficient farming system.

“Chile is the second largest salmon and trout producer nation in the world. The GOAL conference is specifically targeted to the decision makers in the industry,” remarked Mr. Fitzpatrick. “Early results from our demonstration farms in Canada and China indicate improvements in fish health, growth cycles and operating costs – all achieved in a sustainable and responsible fashion. The presentation during the GOAL conference will provide an overview of how marine-based closed containment technology fits within the changing needs of all stakeholders around the world, and how the industry can be part of this positive change”.

ABOUT GOAL
GOAL is an annual event that provides seafood and aquaculture business leaders with the latest information on the farmed seafood value chain through summaries of supply data for shrimp and fish, and concise reviews of leading international markets. GOAL 2011 is organized by the Global Aquaculture Alliance, an international non-profit trade association dedicated to advancing responsible aquaculture. GAA is the leading standards-setting organization for farmed seafood.