Mr. Riley is Chairman of B. Riley & Co., LLC (“B. RILEY”), a Los-Angeles-based brokerage and California Registered Investment Advisor.  Since its founding in 1997, B. RILEY has grown into a leading full-service investment bank with offices nationwide.

Mr. Riley also currently sits on the board of directors of two additional publicly traded companies, Great American Group [OTCBB: GAMR] and Strasbaugh [OTC: STRB], and is on the board of privately-held Lightbridge Communications Corp.  Previously, Mr. Riley has held Board positions at Alliance Semiconductor Corporation, Aldila Inc., Carreker Corporation, DDI Corp., Integrated Silicon Solution, Inc., Celeritek, Inc., Kitty Hawk Inc., Mossimo Inc., SI Technologies, Inc., Silicon Storage Technologies, Trans World Entertainment and Transmeta Corp.

Mr. Riley holds a Bachelor of Science in Finance from Lehigh University in Pennsylvania.

About Cadiz
Founded in 1983, Cadiz Inc. is a publicly-held renewable resources company that owns 70 square miles of property with significant water resources in Southern California. The Company is engaged in a combination of organic farming and water supply and storage projects at its properties and abides by a wide-ranging “Green Compact” focused on environmental conservation and sustainable practices to manage its land, water and agricultural resources. For more information about Cadiz, visit www.cadizinc.com http://www.cadizinc.com/.

Los Angeles, CA — Cadiz Inc. (NASDAQ: CDZI) (“Cadiz”, “the Company”) is pleased to announce that it has entered into an agreement with its senior lenders (“the Lenders”) to refinance the Company’s existing $66 million corporate term debt that is currently due June 29, 2013. The agreement establishes two separate debt instruments, a $30 million senior secured mortgage loan due in three years and a new $53.5 million convertible bond due in five years. No principal or interest payments are required under either instrument during the term until maturity. The new debt instruments will replace all existing term debt on the Company’s balance sheet and provide $17.5 million in new working capital to fund the Company’s current operations, including pre-construction activities related to the Cadiz Valley Water Conservation, Recovery and Storage Project (the “Water Project”).

• The major components of the refinancing include: A $30 million senior term loan secured by the underlying assets of the Company, including our landholdings and infrastructure (“Senior Secured Debt”). This instrument, which will be held entirely by our existing Lenders, will accrue interest at 8% and require no principal or interest payments before maturity in March 2016. Prepayment would be mandatory following any asset sale or voluntary at the Company’s option, subject to a premium. The Senior Secured Debt will have a senior position to any other Company debt instrument.
• A $53.5 million convertible bond held by our existing Lenders and new investors (“Convertible Bond(s)”). The Bond will be convertible at any time into the Company’s common stock at a price of $8.05 per share. Interest will accrue at 7%, with no principal or interest payments required before maturity in March 2018. This instrument will have a junior position to the Senior Secured Debt.
• Approximately $17.5 million in new working capital provided as part of the Convertible Bond issuance to fund Company operations.

The Company is currently engaged in important pre-construction planning activities for the Water Project, including resolution of outstanding administrative CEQA litigation, the finalization of water supply purchase agreements with all Project participants, and final facility engineering and design, which will include a technical agreement with the Metropolitan Water District related to the exchange of Cadiz water. The Water Project’s environmental review was successfully completed in 2012 with the Project receiving a certified Final Environmental Impact Report (“Final EIR”) concluding that operations would not cause any significant adverse environmental impacts. The Project also obtained key approvals of its 50-year groundwater extraction plan and the first purchase agreement for project water supplies.

“As a result of the significant advancement of the Project in 2012, the Company is working diligently to execute the important pre-construction phase and be in a position to commence construction next year,” said Scott Slater, Cadiz CEO & President. “This refinancing and working capital raise are critical for our next phase and we are pleased with the new structure.”

Water Project facilities include a wellfield and an underground water conveyance pipeline along the active Arizona & California Railroad (ARZC) right-of-way that would deliver conserved water to the Colorado River Aqueduct, one of Southern California’s primary water distribution facilities. Capital costs for construction of the Water Project facilities are estimated at approximately $225 million. Project participants will have the opportunity to independently finance their pro-rata portion of the Project facilities. Alternatively, these facilities can be privately financed by the Company with lower-cost infrastructure construction financing debt. The agreement announced today affords us with additional flexibility to place such debt ahead of the Convertible Bonds subject to certain terms and conditions.

In addition to ongoing pre-construction activities, we are currently engaged in incorporating the recently acquired 96-mile idle natural gas pipeline extending from Cadiz to the Barstow area into our business plans and exploring optimal configurations for further Project development and environmental analysis of the Water Project’s imported storage phase, or Phase 2. The integration of the 96-mile pipeline holds great promise for connecting Northern California and Colorado River supplies by a common storage facility. We also remain dedicated to our existing desert operations, including our agricultural development in the Cadiz Valley, and advancing our legacy commitments to the area, including a tourist steam train operation on the ARZC and a museum cultural center in Cadiz.

B. Riley & Company served as advisor on the transaction and placement agent for the Convertible Bond. The closing of the transaction is expected this week subject to the satisfaction of customary closing conditions.

About Cadiz Inc.
Founded in 1983, Cadiz Inc. is a publicly-held renewable resources company that owns 70 square miles of property with significant water resources and clean energy potential in eastern San Bernardino County, California. The Company is engaged in a combination of organic farming and water supply and storage projects, including theCadiz Valley water Conservation, Recovery & Storage Project which will deliver a new, reliable water supply throughout Southern California. Cadiz abides by a wide-ranging “Green Compact” focused on environmental conservation and sustainable management practices at its properties. For more information about Cadiz, visit www.cadizinc.com http://www.cadizinc.com/.

About B. Riley & Co.
B. Riley & Co. is a leading independent investment bank which provides a full array of corporate finance, research, sales, trading and otcqx dad services to corporate,institutional and high net worth individual clients. Investment banking services include merger and acquisitions advisory to public and private middle market companies, initial and secondary public offerings and institutional private placements. Its Corporate Governance Advisory Services Group is engaged by both companies and investors to help maximize value for shareholders. The firm is recognized for its distinguished Equity Research. Founded in 1997, B. Riley is headquartered in Los Angeles and maintains offices in Newport Beach, San Francisco, New York, Boston and Atlanta. It is a member of FINRA and SIPC. For more information, please visit www.brileyco.com http://www.brileyco.com/.

Contact: Courtney Degener, 213-271-1600

Mr. Slater, one of the nation’s foremost experts in water policy and groundwater law, joined the Company as General Counsel in 2008 to oversee land and water resource management activities, including development of the Cadiz Valley Water Conservation, Recovery and Storage Project (“Project”).  Since that time Slater has led the Project through many significant milestones, including last year’s Project approval and certification of the California Environmental Quality Act (“CEQA”) documents by the Santa Margarita Water District.  Mr. Slater is now leading the Project’s economic and pre-construction phase and, as CEO, will also oversee the long-term development and holistic management of the Company’s various resource assets.

“Scott Slater is a proven leader who can bring our Project over the finish line,” said Keith Brackpool.  “We have made tremendous progress since Scott joined the Company and we could not have a more qualified person to steer Cadiz through its next phase.”

Mr. Slater, who is also on the Company’s Board of Directors, is a veteran water rights attorney with over 25 years of experience in the water industry.  In addition to his positions at the Company, Mr. Slater is also a shareholder in Brownstein Hyatt Farber Schreck, L.L.P. (“Brownstein”), the nation’s leading water practice firm.  He has served as lead negotiator on a number of important water transactions, including the negotiation of the largest conservation-based water transfer in U.S. history on behalf of the San Diego County Water Authority.  Mr. Slater is also the author of California Water Law and Policy, a two-volume treatise on the subject, and has taught law and graduate courses at Pepperdine University, the University of California, Santa Barbara and the University of West Australia.

“I am proud to take on this important role at such an exciting time,” Mr. Slater commented. “We’ve envisioned a multi-faceted business including water conservation and storage, organic agriculture, desert land conservation, and tourist investments to sustainably manage our vast resources in the desert and provide long-term benefits.  I look forward to implementing these worthy programs and achieving our objectives.”

About Cadiz Inc.

Founded in 1983, Cadiz Inc. is a publicly-held renewable resources company that owns 70 square miles of property with significant water resources and clean energy potential in eastern San Bernardino County, California.  The Company is engaged in a combination of water supply and storage and organic farming projects.  Cadiz abides by a wide-ranging “Green Compact” focused on environmental conservation and sustainable management practices at its properties.  For more information about Cadiz, visit www.cadizinc.com.

Transaction results in significant financial gain for Company

Los Angeles CA (December 11, 2012) — Today Cadiz Inc. (NASDAQ: CDZI) (“Cadiz”, “the Company”) announced it has entered into a new agreement with Kinder Morgan, Inc. (NYSE: KMI) (“Kinder Morgan”) securing the Company’s ownership of a 96-mile natural gas pipeline linking its holdings in the Cadiz Valley to the northern and central California water delivery network.  The exchange agreement divides 220 miles of pipeline currently under option to the Company, with the Company gaining ownership rights to the 96-mile eastern segment between Barstow and the Cadiz Valley and returning to Kinder Morgan rights to the 124-mile western segment.

In 2010, Cadiz procured an option to purchase the 220-mile pipeline for $40 million from El Paso Natural Gas (“EPNG”), which was subsequently acquired by Kinder Morgan.  Kinder Morgan is currently exploring expansion of its oil and gas transportation network between Texas and California and desired to purchase back rights to the western segment of this line.  The consideration that Kinder Morgan has paid Cadiz for this agreement has been made by way of a reduction in the purchase price of the 96-mile eastern segment of the pipeline to a nominal amount of $1 (one dollar).  In addition, Kinder Morgan will pay the Company a further $10 million cash payment at the time it seeks regulatory approval for use of the western line.

“The agreement promises a quantum improvement in our Water Project’s versatility.  We now have a very real opportunity to interconnect the Colorado River and northern California sources through the Project.  The conversion of the existing pipeline brings with it the ability to introduce new high quality surplus supplies for storage at Cadiz at a monumental savings,” said Company President Scott Slater.  “This is pipe that’s already in the ground, can be used without disturbing the environment, and terminates near California’s central water delivery system giving us new access to additional water customers.”

The conversion of the Cadiz-Barstow segment to water transportation will create significant opportunities for the Company’s Cadiz Valley Water Conservation, Recovery and Storage Project (“Water Project”, “Project”).  Once converted to water use, the pipeline can be used to directly connect the project area to northern and central California water sources during its second phase, serving a growing need for additional locations for storage south of the Bay Delta region.  In addition, the pipeline would allow Cadiz to deliver water, either directly or via exchange, to potential customers in San Bernardino and Kern Counties, areas which do not currently have an interconnection point with the Project.

Cadiz has evaluated the entire pipeline for its potential to transport water and has identified the 96-mile eastern portion from the Cadiz Valley to Barstow as the most critical segment of the line for accessing the state’s water transportation infrastructure.  The Barstow area serves as a hub for water delivered from northern and central California to communities in Southern California’s High Desert.  Feasibility assessments and technical analysis indicate that the 30-inch line has excellent potential to convey approximately 20,000 acre-feet of water per year to and from points along the route.

The use of the entire 220-mile pipeline by the Project was examined in the certified Environmental Impact Report as an alternative to the 43-mile route to the Colorado River Aqueduct.  The Project would now incorporate both the 43-mile and 96-mile route, with any groundwater extractions by either the 43-mile line or the converted Cadiz-Barstow line conducted in conformity with the Project’s Groundwater Management, Monitoring and Mitigation Plan approved by the San Bernardino County Board of Supervisors in October.  The use of the two lines would link the Project to both of the major water delivery systems in Southern California providing flexible opportunities for both supply and storage.  The Company expects to initiate analysis of potential storage opportunities for the Project in 2013 as part of the Project’s Phase II environmental review.

About the Project
The Cadiz Project will provide a new, reliable water supply for approximately 400,000 Southern Californians by capturing and conserving groundwater that will otherwise be lost to evaporation from a vast aquifer system beneath Cadiz Inc. property in California’s Mojave Desert.  In its first phase, the Project will deliver up to an average of 50,000 acre-feet per year to Southern California water providers.  The Arizona & California Railroad Company, which owns and operates the railroad right-of-way to be used by the Project’s proposed water conveyance pipeline, will also receive water from the Project to serve railroad purposes.  In its second phase, the Project proposes to offer approximately one million acre-feet of underground aquifer storage to bank excess supplies without the high rates of evaporative loss suffered by local surface reservoirs.  All Project facilities, including a wellfield and 43-mile pipeline to the Colorado River Aqueduct, will be built on private land and avoid desert critical habitat.

About Cadiz Inc.
Founded in 1983, Cadiz Inc. is a publicly-held renewable resources company that owns 70 square miles of property with significant water resources and clean energy potential in eastern San Bernardino County, California.  The Company is engaged in a combination of water supply and storage and organic farming projects.  Cadiz abides by a wide-ranging “Green Compact” focused on environmental conservation and sustainable management practices at its properties.  For more information about Cadiz, visit www.cadizinc.com.

###

Contact:
Courtney Degener
CADIZ INC.
213-271-1600

From the time before statehood, water has been recognized as the lifeblood of California’s economy. A little more than 80 years ago, the people of this state adopted a constitutional amendment mandating the optimization of efficient water use in California. Since that time, water has remained a critical resource and Article 10, Section 2 of the California Constitution has served to provide the legal and policy underpinnings for responsible water use.
Water rights are private property. Indeed, the United States Supreme Court has declared them among the most valuable of all property rights. Yet, even these property rights are not untouchable. Private and public owners of water rights share a duty to use water responsibly. That is, the right to water may be enjoyed only so long as water rights are used consistent with the corresponding duty to use the water wisely and with respect for others and the environment.

Cadiz Inc. is a private landowner that owns 34,000 acres (50 square miles) of private property in the Cadiz and Fenner valleys in eastern San Bernardino County that overlies significant groundwater resources. Currently, millions of acre-feet of clean, renewable groundwater move slowly downward beneath the Cadiz Valley property to a salt flat where it is lost to evaporation.

The Cadiz Valley Water Project promises to conserve 1.6 million acre-feet of water by intercepting it before it can become hyper-saline (undrinkable) and then evaporate. The project will not take water from any existing user or harm the environment.

This promise is supported by three years of physical investigations, field mapping, land surveys, modeling and the drilling of a dozen wells and pump tests conducted by the nation’s largest water-well driller and Inland Empire company, Layne Christensen, which has described the aquifer system underlying the Project as prolific. A 7,000-page environmental impact report certified by the Santa Margarita Water District in July also found no significant environmental impacts attributable to the project operations.

These hydrologic evaluations and environmental documents were peer-reviewed by an independent group of groundwater professionals (Groundwater Stewardship Committee) that included Chip Groat, the former head of the U.S. Geological Survey, Professor Robert Wilkinson from the University of California, Santa Barbara, Gregory Thomas from the Natural Heritage Institute, and Andrew Stone of the American Ground Water Trust, among others. These individuals were not paid for their services, and spent months conducting their thorough review. They concluded that the project was feasible and that it could be implemented without harm to the environment.
By contrast, critics of the project retained paid consultants that have relied upon decade-old and largely discredited studies to argue that the project uses flawed recharge estimates and should be delayed or subject to additional analysis. On Oct. 1, the County of San Bernardino put this debate to rest.

Retaining its own independent expert groundwater specialists to peer review the project, the county weighed in by requiring stringent monitoring and conditions for the project that will provide yet further restrictions on project operations to avoid harm. The Groundwater Management, Monitoring and Mitigation Plan (GMMMP) adopted by the county Oct. 1 imposes limits to groundwater withdrawals to a measurable floor (cap) on subsurface groundwater levels, in effect, making the debate over recharge moot. If there is less recharge than predicted, then the water table may fall to the established floor, but not beyond it.

The county also reserved complete and total enforcement power to further condition the project over time, or to simply shut it down if necessary. In addition, the county negotiated for long-term rights to 20 percent of the project yield for county-based water agencies, as well as a one-time supply of 25,000 acre-feet.

The county’s action smartly and efficiently establishes it as the independent enforcement entity to ensure groundwater withdrawals do not cause impacts within the watershed. Despite the critics’ failure to acknowledge the historical, geologic and hydrogeologic inaccuracies in comparing Fenner Valley to the Owens Valley, there is now one irrefutable legal difference. That is, Owens and Mono counties fought for 80 years to obtain the regulatory authority and control over diversions from the region that San Bernardino County obtained through its actions Oct. 1.

The Cadiz Project demonstrates the very best in public-private stewardship. Private enterprise has invested to bring forward a proposal that will save enormous quantities of water from waste. Public agencies have evaluated the merits and the county’s action now adds local control to independently ensure that the project’s promise of stewardship – the conservation of 1.6 million acre-feet of groundwater without harm to others and the environment – will be fulfilled.

After 25 years in business in the county, Cadiz has pledged that on the way to project completion, the vast majority of the $225 million capital budget will be spent on local vendors so that economic benefits are realized here where they are sorely needed. Local economist John Husing has estimated the project’s overall economic impact to be over $800 million.
Scott Slater is Cadiz Inc.’s president and general counsel and is also a member of the Board of Directors.

Los Angeles, CA (October 5, 2012) – Cadiz Inc. (NASDAQ:CDZI) (“Cadiz”) reported today that a lawsuit filed in U.S. Federal Court jointly against the Company, the Santa Margarita Water District (“SMWD”), the County of San Bernardino (“County”), the U.S. Department of the Interior (“DOI”) and the U.S. Bureau of Land Management (“BLM”) has been dismissed. The Court determined that Petitioner RiverAHA was unlikely to succeed on the merits. The dismissal now ends the pending Federal Court litigation over the Cadiz Valley Water Conservation, Recovery and Storage Project (“Project”). Legal proceedings challenging the recent Project approvals continue in California State Court.

About Cadiz Inc.
Founded in 1983, Cadiz Inc. is a publicly-held renewable resources company that owns 70 square miles of property with significant water resources and clean energy potential in eastern San Bernardino County, California. The Company is engaged in a combination of water supply and storage and organic farming projects. Cadiz abides by a wide-ranging “Green Compact” at its properties focused on environmental conservation and sustainable management practices. For more information about Cadiz, visit www.cadizinc.com.

Contact: Courtney Degener, 213-271-1600

Los Angeles CA (October 2, 2012) — Cadiz Inc. [NASDAQ: CDZI] (“Cadiz”) reported today that the San Bernardino County Board of Supervisors voted to approve the  Groundwater Management, Monitoring, and Mitigation Plan (“GMMMP”) for the Cadiz Valley Water Conservation, Recovery and Storage Project (“Project”). This represents another significant milestone for the Project, which will provide an annual reliable water supply to Southern California communities by capturing and conserving native groundwater currently being lost to evaporation from the aquifer system beneath the Company’s property in eastern San Bernardino County’s Cadiz Valley.  The County’s action authorizes the Project to withdraw an average of 50,000 acre-feet of water per year.

The Project’s Environmental Impact Report (“EIR”) was certified on July 31, 2012 by the Santa Margarita Water District (“SMWD”), the Lead Agency of the Project’s California Environmental Quality Act (“CEQA”) environmental review and permitting process.  The County has served as a Responsible Agency in the CEQA review process as the local government entity responsible for oversight over groundwater resources in the Cadiz Valley.  In addition to approving the GMMMP, the County adopted certain findings under CEQA and is the first responsible agency to take an approving action pursuant to the certified EIR.  Earlier this year, SMWD, Cadiz and the County entered into a Memorandum of Understanding creating the framework for finalizing the GMMMP in accordance with the County’s desert groundwater ordinance.

Critics of the Project have requested independent review of groundwater data and separate enforcement authority that would be held by a disinterested regulatory body.  The County’s action is responsive to this request.   As part of its approval of the GMMMP yesterday, the County formally established an independent enforcement role over Project’s operations and authorized groundwater withdrawals that will avoid harm to desert resources.

“As a member of the desert community for over 25 years, Cadiz has taken great care to ensure that the Project will protect critical resources of the desert by committing to comprehensive, long-term monitoring enforced by San Bernardino County.” said Company President and General Counsel Scott Slater. “We thank the County for their diligence in reviewing the Project and look forward to working together as the Project moves ahead.”

The GMMMP is a key feature of the Project created to track Project operations and ensure safe and sustainable management of the groundwater basin.  It was designed by leading groundwater experts, in consultation with SMWD and San Bernardino County staff, and was finalized after receiving input from stakeholders and the public.    The GMMMP includes extensive, state-of-the-art monitoring measures for critical resources of the desert (including water, air, springs, land surface and vegetation) that will be employed over a 2,000 square mile area.  Regular monitoring reports will be filed with the County and subject to review and action outlined in the GMMMP.

The Project has received substantial support from scientists, local government officials and many San Bernardino County businesses and organizations, including six County-based Chambers of Commerce, the Inland Empire Chamber Legislative Alliance, the Inland Empire Economic Partnership, the Building Industry Association of Southern California, the San Bernardino Railroad Historical Society and the Morongo Basin Regional Economic Development Consortium.

The Company will now continue to proceed with final design, engineering and construction planning, complete arrangements with Project participants, and finalize necessary permits with other responsible agencies as part of the pre-construction phase.

About the Project
The Cadiz Project will provide a new, reliable water supply for approximately 400,000 Southern Californians by capturing and conserving groundwater that will otherwise be lost to evaporation from a vast aquifer system beneath Cadiz Inc. property in California’s Mojave Desert without harming the basin.  In its first phase, the Project will deliver up to an average of 50,000 acre-feet per year to Southern California water providers, including SMWD, Three Valleys Municipal Water District, Suburban Water Systems, Golden State Water Company, Jurupa Community Services District, and California Water Service Company.  The Arizona & California Railroad Company, which owns and operates the railroad right-of-way to be used by the Project’s proposed water conveyance pipeline, will also receive water from the Project to serve railroad purposes.  A second potential future phase of the Project offers approximately one million acre-feet of aquifer storage capacity that can be used to carry-over, or “bank,” annual supplies, without the high rates of evaporative loss suffered by local surface reservoirs. All Project facilities, including a wellfield and 43-mile pipeline to the Colorado River Aqueduct, will be built on private land and avoid desert critical habitat.

About Cadiz Inc.
Founded in 1983, Cadiz Inc. is a publicly-held renewable resources company that owns 70 square miles of property with significant water resources and clean energy potential in eastern San Bernardino County, California. The Company is engaged in a combination of water supply and storage and organic farming projects. In 2009 Cadiz adopted a wide-ranging “Green Compact” to implement environmental conservation and sustainable management practices at its properties. For more information about Cadiz, visit www.cadizinc.com.

Contact: Courtney Degener, 213-271-1603

•  Conversion of existing option agreements with the Project participants into final purchase agreements.   SMWD was the first participant to convert its option agreement and approve a purchase agreement following Project approval.   The structure of the SMWD purchase agreement calls for an annually adjusted water supply payment of up to $500/AF including identified income streams, plus their pro rata portion of the capital recovery charge and operating and maintenance costs. The capital recovery charge is calculated by amortizing the total capital investment by the Company over a 30 year term.  In consideration of its assumption of project management responsibilities throughout pre-construction, construction and Project operations, SMWD is acquiring water from the Project at a cost less than other Project participants.
• Enter into agreements with new participants for Project supplies.  The Company is in active negotiations with several additional wholesale and retail water providers that are interested in acquiring supplies from the Project. The Company will progress these new arrangements concurrently with the negotiations with existing participants.
• Complete final design, construction bidding and construction financing.  Earlier this year, the Company engaged an investment bank specializing in infrastructure financing with significant experience in California to lead the Company through the construction financing process for the Project.  Based on the evaluations conducted by this investment bank, construction financing is expected to be entirely provided with lower-cost senior debt, secured by the new facility assets.
• County of San Bernardino Acceptance of GMMMP.  San Bernardino County has previously accepted responsibility for independently reviewing and enforcing the groundwater management plan for the Project.  The GMMMP has been approved by SMWD and, in conformity with the May 2012 Memorandum of Understanding between the County, SMWD and Cadiz, it has been transmitted to the County for its review and approval.
• Complete Tie-In Arrangements with the Metropolitan Water District (“MWD”).  Project water supplies will enter the Colorado River Aqueduct in accordance with MWD’s published engineering and design standards. The Project will assume responsibility for the payment of all applicable fees and charges routinely established by MWD for the conveyance of water within its service territory.
• Advance Phase II of the Project.  With environmental review for Phase I completed, the Company is now in discussions with interested parties regarding the development of the imported storage component of the Project, or Phase II.  Phase II would make use of the Project facilities constructed for Phase 1 to store imported water at the Project area, adding significant value for participants and the Company.
• Development of Land Conservation Bank.  The Company intends to convey approximately 9,000 acres of its properties located outside of the Project area to a conservation bank, making them available for purchase by third parties that have environmental mitigation requirements.  The bank will offer credits that can be acquired by third party entities and the Company would receive payment for the value of the land available in the bank.
• Progress New Water Transportation Segment.  The Company continues to progress the conversion of two idle natural gas pipelines in Southern California to water transportation.  The Company owns purchase options for both pipelines and is considering utilizing the lines either for the distribution of third party water or, in certain segments, as part of the Project. Initial feasibility studies indicate that, upon conversion, the two pipelines would have a combined average capacity to distribute up to 40,000 AF/year in markets that currently lack multiple water distribution opportunities.

It is standard for large infrastructure projects in California to face legal challenges.  While the Company proceeds with the steps above, it expects to be party to various legal proceedings related to Project approval. Given the extensive work that was completed as part of the rigorous environmental review process, the Company does not believe that litigation will delay the next steps or alter plans for the construction of the Project.

In order to execute the important steps outlined above and to be in a position to commence construction, the Company estimates that approximately $15 million will be required to fund these activities. The structure of any capital raise will be consistent with past practices, namely the Company’s goal of minimizing dilution to current shareholders.  Further, consistent with the recently acquired option right to extend the Company’s existing mortgage debt’s maturity, the Company will continue to work with its lenders to refinance, extend or otherwise arrange that the term of the debt is coterminous with commencement of the Project’s construction financing.

The current and projected demand for water and water reliability in Southern California is a key driver of the Project.  As a result of ongoing challenges to California’s traditional water supplies, water providers are engaged in serious efforts to identify and develop new water supply options. Earlier this month, some of the State’s largest water providers announced plans to construct major tunnels around the Sacramento-San Joaquin Bay Delta at a cost of approximately $20 Billion. If implemented, this proposal would be financed by ratepayers and will likely only maintain the status quo and not revive historic deliveries from the Delta. In order to meet the challenges to California’s water supply, many new solutions are being explored in addition to improvements to the Delta delivery system.

“The Project offers a unique, cost-effective Southern California-based water supply that has been developed using private capital and protects existing rate structures in Southern California,” said Scott Slater, Cadiz President and General Counsel.  “The Project will also offer the ability to store water in periods of excess supply for use in future dry years, which is a distinctive characteristic not offered by other new supply alternatives. As a result, our customers will receive an affordable water supply solution at a competitive advantage to other available supply investments.”

In addition to the business objectives outlined above, the Company remains committed to its organic agricultural operation and new legacy investments at its property in the Cadiz Valley, including a tourist rail operation, desert cultural center, and surface land conservation initiatives.  These new programs will be implemented concurrently with the Project.

About Cadiz Inc.

Founded in 1983, Cadiz Inc. is a publicly-held renewable resources company that owns 70 square miles of property with significant water resources and clean energy potential in eastern San Bernardino County, California.  The Company is engaged in the development of water supply and storage projects and operates an organic farm in the Cadiz Valley.  In 2009 Cadiz adopted a wide-ranging “Green Compact” to implement environmental conservation and sustainable management practices at its properties.  For more information about Cadiz, visit www.cadizinc.com

FORWARD LOOKING STATEMENT: This release contains forward-looking statements that are subject to significant risks and uncertainties, including statements related to the future operating and financial performance of the Company and the financing activities of the Company.  Although the Company believes that the expectations reflected in our forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.  Factors that could cause actual results or events to differ materially from those reflected in the Company’s forward-looking statements include the Company’s ability to maximize value for Cadiz land and water resources, the Company’s ability to obtain new financing as needed, the outcome of litigation related to the water project and other factors and considerations detailed in the Company’s Securities and Exchange Commission filings.

(August 1, 2012) Los Angeles, CA — Cadiz Inc. (NASDAQ: CDZI) is pleased to announce that the Santa Margarita Water District (“SMWD”) Board of Directors voted unanimously to certify the Final Environmental Impact Report (“Final EIR”) for the Cadiz Valley Water Conservation, Recovery and Storage Project (“Project”) and approve the  Project’s Groundwater Management, Monitoring and Mitigation Plan (“GMMMP”) and Purchase and Sale Agreement, which outlines terms for their participation in the Project.  These actions follow a nearly 18-month environmental review and represent significant milestones for the Project.
“We are very grateful for the SMWD Board’s decision tonight and their leadership in this process,” said Scott Slater, President and General Council of Cadiz. “We also want to thank the South Orange County and Hi-Desert communities for their support and participation in public comment.  As a longtime desert business, we are committed to the protection of desert resources and implementing a safe and sustainable project.  We look forward to working with our neighbors as we enter the next phase of the Project and further develop our legacy commitments to the area, including land conservation easements, habitat protection and a steam train and cultural center.”

The Cadiz Project will provide a new, reliable water supply for approximately 100,000 Southern California homes by capturing and conserving groundwater that will otherwise be lost to evaporation from a vast aquifer system beneath our private property owned in California’s Mojave Desert.  In its first phase, the Project will deliver up to an average of 50,000 acre-feet per year to Southern California water providers, including SMWD.  The Arizona & California Railroad Company, which owns and operates the railroad right-of-way to be used by the Project’s water conveyance pipeline to the Colorado River Aqueduct, is also a Project participant. The ARZC will receive water from the Project to meet critical railroad purposes, including fire suppression.

To safeguard the environment, the Project includes an extensive monitoring and mitigation program that will be independently enforced by the County of San Bernardino and SMWD.  All Project facilities, including a wellfield and the conveyance pipeline, will be built on private land and avoid any critical habitat.

The Final EIR for the Project, which evaluated potential for environmental impacts and responded to all comments received during a 100-day public comment period, was issued earlier this month by SMWD. The Final EIR summarized that the Project would not cause significant impacts to critical resources of the desert.  A public hearing was held on July 25th to consider certification of the environmental documents and approval of the GMMMP and Purchase and Sale Agreement. The SMWD Board continued its meeting until July 31st to complete deliberations on the Project and then acted to approve the Project and related documents. The Company will now work to complete arrangements with other Project participants, finalize necessary permits in compliance with MWD conditions and move ahead to the construction phase.

The Project has received substantial support from San Bernardino and Orange County organizations and businesses, as well as water experts and industry professionals.  Organizations that testified in support of the Project at the July 25 public hearing included South Orange County Chamber of Commerce and Economic Coalition, Association of California Cities-Orange County, Orange County Taxpayers Association, Rancho Santa Margarita Chamber of Commerce, Rancho Cucamonga Chamber of Commerce and the Engineering Contractors Association.

As part of a local outreach campaign, over 2,100 South Orange County residents and SMWD customers signed cards expressing support for SMWD’s efforts to improve water supply reliability and evaluate the Project.  Nearly 500 support cards from the Hi-Desert region of San Bernardino County, which is local to the Project area, were also received.

About Cadiz Inc.
Founded in 1983, Cadiz Inc. is a publicly-held renewable resources company that owns 70 square miles of property with significant water resources and clean energy potential in eastern San Bernardino County, California.  The Company is engaged in the development of water supply and storage projects and operates an organic farm in the Cadiz Valley.  In 2009 Cadiz adopted a wide-ranging “Green Compact” to implement environmental conservation and sustainable management practices at its properties.  For more information about Cadiz, visit www.cadizinc.com.

This release contains forward-looking statements that are subject to significant risks and uncertainties, including statements related to the future operating and financial performance of the Company and the financing activities of the Company.  Although the Company believes that the expectations reflected in our forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.  Factors that could cause actual results or events to differ materially from those reflected in the Company’s forward-looking statements include the Company’s ability to maximize value for Cadiz land and water resources, the Company’s ability to obtain new financing as needed, the receipt of permits for the water project and other factors and considerations detailed in the Company’s Securities and Exchange Commission filings.

Contact:
Courtney Degener
213-271-1600

Los Angeles, CA – Cadiz Inc. (NASDAQ: CDZI) reported today that the Santa Margarita Water District (“SMWD”), the lead agency of the environmental review process for the Company’s Cadiz Valley Water Conservation, Recovery and Storage Project (“Project”), conducted a public hearing yesterday evening to receive comment on the Project’s Final Environmental Impact Report (“Final EIR”) and related documents.  At the conclusion of public comment, the Board adjourned the meeting until Tuesday, July 31st at 6:00pm when it will begin deliberations to consider certification of the Final EIR. More details about the July 31st meeting are available at www.smwd.com.

At the public hearing, the Project received substantial support from the community, businesses, and water industry experts.  Organizations that testified in support of the Project included South Orange County Chamber of Commerce and Economic Coalition, Association of California Cities-Orange County, Orange County Taxpayers Association, Rancho Santa Margarita Chamber of Commerce, Rancho Cucamonga Chamber of Commerce, the Engineering Contractors Association and Professionals for Water Supply Reliability.

In addition to those that testified at the hearing, close to 2,000 South Orange County, California residents and SMWD customers signed cards expressing support for SMWD’s efforts to improve water supply reliability with this Project.  These cards were submitted at the hearing.  In addition to the outpouring of support from South Orange County residents, nearly 500 support cards from the Hi-Desert region of San Bernardino County, which is local to the Project area, were also added at the hearing.

About the Project
The Cadiz Project will provide a new, reliable water supply for approximately 400,000 Southern Californians by capturing and conserving groundwater that will otherwise be lost to evaporation from a vast aquifer system beneath private property owned by Cadiz Inc. in California’s Mojave Desert.  In its first phase, the Project will deliver up to an average of 50,000 acre-feet per year to Southern California water providers, including SMWD, Three Valleys Municipal Water District, Suburban Water Systems, Golden State Water Company, Jurupa Community Services District, and California Water Service Company.  The Arizona & California Railroad Company, which owns and operates the railroad right-of-way to be used by the Project’s proposed water conveyance pipeline, will also receive water from the Project.  A second potential future phase of the Project offers approximately one million acre-feet of aquifer storage capacity that can be used to carry-over, or “bank,” annual supplies, without the high rates of evaporative loss suffered by local surface reservoirs.

To safeguard the environment, the Project includes an extensive monitoring and mitigation program that will be independently enforced by the County of San Bernardino and SMWD.  All Project facilities, including a wellfield and 43-mile pipeline to the Colorado River Aqueduct, will be built on private land and avoid any critical habitat.

About Cadiz Inc.
Founded in 1983, Cadiz Inc. is a publicly-held renewable resources company that owns 70 square miles of property with significant water resources and clean energy potential in eastern San Bernardino County, California.  The Company is engaged in the development of water supply and storage projects and operates an organic farm in the Cadiz Valley.  In 2009 Cadiz adopted a wide-ranging “Green Compact” to implement environmental conservation and sustainable management practices at its properties.  For more information about Cadiz, visit www.cadizinc.com.

This release contains forward-looking statements that are subject to significant risks and uncertainties, including statements related to the future operating and financial performance of the Company and the financing activities of the Company.  Although the Company believes that the expectations reflected in our forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.  Factors that could cause actual results or events to differ materially from those reflected in the Company’s forward-looking statements include the Company’s ability to maximize value for Cadiz land and water resources, the Company’s ability to obtain new financing as needed, the receipt of positive feasibility and environmental approvals for the water project and other factors and considerations detailed in the Company’s Securities and Exchange Commission filings.