Purchase of Fused-Alumina Supplier to Strengthen Raw Material Access

China Gengsheng Minerals, Inc. a leading manufacturer in China of industrial materials capable of withstanding high temperature, saving energy and boosting productivity in certain industries such as steel and oil, today announced that it has signed a definitive agreement to acquire 100% of Qiandongnanzhou Xinyu Abrasives Co., Ltd. (''Xinyu''), located in Guizhou province in China, for $857,000 (RMB 6 million) in cash.

Xinyu is a medium-sized supplier of raw materials to refractory manufacturers and specializes in brown fused alumina, derived from fusing bauxite to obtain a higher concentration of alumina. The fused alumina is used to make high-strength abrasives and refractory products. The purchase of Xinyu is expected to secure upstream self-sufficiency in fused alumina for Gengsheng's refractory and fine precision abrasive products.

''Today's acquisition is expected to strengthen our access to and ownership of key raw material supplies,'' said Mr. Shunqing Zhang, Chairman, CEO and President of Gengsheng. ''In addition, we expect that Xinyu will generate revenues from continued sales of raw materials to other refractory manufacturers.''

About China Gengsheng Minerals, Inc.

China Gengsheng Minerals, Inc. (''Gengsheng'') develops, manufactures and markets a broad range of mineral-based industrial material products, including monolithic refractories, industrial ceramics and fracture proppants. A market leader offering customized solutions, Gengsheng sells its products primarily to the iron-and-steel industry as heat-resistant components for steel-making furnaces, industrial kilns and other high-temperature vessels to guarantee and improve the productivity of those expensive pieces of equipment while reducing their consumption of energy. Founded in 1986 and based in China's Henan province, Gengsheng currently has over 200 customers in the iron, steel, oil, glass, cement, aluminum and chemical businesses located in China and in 11 other countries. Gengsheng conducts business through Gengsheng International Corporation, a British Virgin Islands company, and its Chinese subsidiaries, which are Henan Gengsheng Refractories Co., Ltd., Zhengzhou Duesail Fracture Proppant Co., Ltd. and Henan Gengsheng High Temperature Materials Co., Ltd.

For more information about the Company, please visit http://www.gengsheng.com .

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