Tuna spawning and half year results update

Clean  Seas  Tuna  Ltd is  pleased  to  advise  that  its  Southern  Bluefin  Tuna  (SBT)  broodstock commenced  spawning  late  last  week  and  consequently  this  season’'s  SBT  larval  rearing  trials  are  also under way at the Company’'s Arno Bay operations in South Australia, reports www.megafishnet.com with reference to Clean Seas.

The  various  initiatives  undertaken  during  the  past  year  have  the  Company  well  placed  to  progress  its  knowledge and achievements in the production of juvenile aquaculture bred SBT.  

These include the new recirculation SBT hatchery which has now been fully commissioned via a successful trial of yellowtail kingfish fingerling production.  Further, the Company has completed its recruitment of a skilled SBT research and development team which is now in place at Arno Bay providing ongoing support to the commercial hatchery team. 

Company policy is to provide Investor Updates on the SBT spawning and larval rearing season at critical times in the annual lifecycle development program as follows:

1. Commencement and cessation of SBT broodstock spawning.

2. Transfer of fingerlings for controlled grow��out trials to either sea cages or holding tanks.

3. Significant progress and/or failures with grow��out trials, e.g. number of SBT juveniles living post 180 days hatch.

The company’'s SBT lifecycle research and development program is ongoing and it is not possible at this stage to anticipate the likely extent of outcomes or the start or end dates for each season.  For example, in  FY2010,  spawning  started  in  mid January  and  stopped  in  mid��April,  whilst  in  2009  it  started  in  mid March and ended in midApril.  In both previous seasons, any single spawning during this time could have resulted in “"to sea”"  or “"to holding tank”"  transfers.    Furthermore,  as  the technology  used  is groundbreaking, the Company needs to maintain an appropriate level of commercial confidentiality.

While Clean Seas’' financial result for the half year ended 31 December 2010 is yet to be finalised, due to a range  of  factors inventory  valuation  requirements  in  particular  ��  it  is  anticipated  that  there  will  be  a reduction in the order of 25% to 35% in the level of the after tax loss for the six months, compared to the half yearly loss for the previous corresponding period to 31 December 2009.  

The winter months are seasonally slow growth months for Kingfish. Whilst this impacts on the first half year results the sell��down of inventory, price increases and cost saving initiatives have resulted in the Company’'s kingfish business being cash flow positive for the latest half year.