PCT

VANCOUVER, Dec. 7 /CNW/ -- TSX-V: PCT VANCOUVER, Dec. 7 /CNW/ - Prima Colombia Hardwood Inc., (TSX-V:PCT) ("Prima Colombia" or the "Company") is pleased to announce that the exclusive timber license agreement between Prima Colombia's Colombian domiciled subsidiary, REM International C.I.S.A. ("REM"), and the Community of Los Delfines (the "Timber Agreement") has been amended to increase the volume of timber from 1,050,000 to 3,121,720 cubic meters and to increase the term for up to 25 years (the "Amendment"). "The increase in timber reserve is expected to have significant financial impact and greatly improves the Company's sustainable production base over the term of the Timber Agreement," says CEO Donald P. Hayes. "We are very grateful to the people of Los Delfines, who through this amendment have reconfirmed their commitment and cooperation with REM, and we look forward to continued close working relations with the Community." "We are very pleased to deliver such a large increase in our timber reserve at this early stage of the Company's development," says COO Harold F. Hayes. The Amendment was executed, December 6, 2010, by REM, and authorized representatives of the Los Delfines Community and includes: 1. An increase in timber volume under the Timber Agreement from 1,050,000 to 3,121,720 cubic meters; 2. The establishment of an annual allowable cut of 208,114 cubic meters per annum with the ability to carry forward prior years' undercuts or volume shortfalls; 3. A renewed term of 15 years commencing on the date of execution of the Amendment; 4. An option to add another 10 years at the end of the 15 year term on notice from Prima Colombia; 5. The opportunity to introduce other suitable harvesting systems in addition to the helicopter harvesting; 6. A commitment to continuing cooperation including a mutual maximum 5 day turnaround provision for further approvals, signatures or actions; 7. Agreement on all consideration to be paid to the Community in respect of the timber harvested throughout the term of the Timber Agreement commencing at $10 US per cubic meter and increasing to $20 US per cubic meter over the term. Payments in respect of timber harvested are payable after the actual production and sale of the timber; and 8. An acknowledgement by both Parties that the Agreement is in good standing. Prima Colombia continues to seek opportunities to enter into additional forest licenses and further increase timber reserves in Colombia. About Prima Colombia Prima Colombia Hardwood Inc. is a TSX Venture Exchange-listed Canadian based forest products company focused on international tropical hardwood timber development, production and marketing. Prima Colombia's operations are located near Bahia Solano, Department of Choco on the west coast of the Republic of Colombia. The harvesting will be carried out using sustainable, selective, low intensity, helicopter logging which is both highly regarded as having low environmental impact and involves no 'clear cutting'. Forward-Looking Information This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of Prima Colombia and its subsidiaries. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Prima Colombia to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Prima Colombia disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. 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 news release. Donald Hayes, Chief Executive Officer and Director Or Kim Galavan, Director Communications & Corporate Secretary, Suite 1310 - 1090, West Georgia St., Vancouver, BC, V6E 3V7, Tel: 604-568-4755, Fax: 604-568-4756, Website: www.primahardwood.com

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