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China Gengsheng Minerals, Inc. Receives $2.9 Million in Short-Term Loan From Agricultural Bank of China

March 25, 2009

GONGYI, China, March 25 /PRNewswire-Asia-FirstCall/ — China Gengsheng
Minerals, Inc. (OTC Bulletin Board: CHGS) (“Gengsheng” or “the Company”), a
materials technology company in China with products capable of withstanding
high temperature, saving energy and boosting productivity in certain
industries such as steel and oil, today announced that Henan Gengsheng
Refractories Co., Ltd., its wholly owned subsidiary, has signed a $2.9 million
(RMB 20 million) short-term loan agreement with Agricultural Bank of China’s
Gongyi City branch in Henan Province (“ABC Gongyi”).

“I am very pleased that ABC Gongyi granted us this loan based on our
excellent credit,” said Mr. Shunqing Zhang, Chairman and CEO and the Company.
“The proceeds give us sufficient cushion in a difficult economic environment,
with steel factories curtailing production. And because of the slowdown in the
alternative energy space worldwide, we are delaying our launch of our 2,083-
ton-capacity fine precision abrasive production line until later this year.
Depending on the improvement in market condition, we will use this $2.9-
million
loan to start the production and shipment of the abrasives.”

Gengsheng has built the new facilities and is now awaiting equipment
purchase and installation to produce the fine precision abrasives from silicon
carbide (SiC), which are ultra-fine, high-strength, grain-like pellets with
uniform shape, and have applications in surface-polishing and slicing of
precision instrument such as solar panels.

About China Gengsheng Minerals, Inc.

China Gengsheng Minerals, Inc. (“Gengsheng”) develops, manufactures and
markets a broad range of high-tech 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’sHenan
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 .

Safe Harbor Statement

This press release may contain certain “forward-looking statements”
relating to the business of China Gengsheng Minerals, Inc., and its subsidiary
companies. All statements, other than statements of historical fact included
herein are “forward-looking statements” including statements regarding the
Company’s ability to meet its projected output for the term of the supply
contract; the general ability of the Company to achieve its commercial
objectives; the business strategy, plans and objectives of the Company and its
subsidiaries; and any other statements of non-historical information. These
forward-looking statements are often identified by the use of forward-looking
terminology such as “believes,” “expects” or similar expressions, involve
known and unknown risks and uncertainties. Although the Company believes that
the expectations reflected in these forward-looking statements are reasonable,
they do involve assumptions, risks and uncertainties, and these expectations
may prove to be incorrect. Investors should not place undue reliance on these
forward-looking statements, which speak only as of the date of this press
release. The Company’s actual results could differ materially from those
anticipated in these forward-looking statements as a result of a variety of
factors, including those discussed in the Company’s periodic reports that are
filed with the Securities and Exchange Commission and available on its website
at http://www.sec.gov. All forward-looking statements attributable to the
Company or persons acting on its behalf are expressly qualified in their
entirety by these factors. Other than as required under the securities laws,
the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    In China:
     Mr. Shuai Zhang
     Investor Relations
     China Gengsheng Minerals, Inc.
     Tel:   +86-371-6405-9846
     Email: gszs@gengsheng.com

    In the U.S.:
     Valentine Ding
     Investor Relations
     Grayling
     Tel:   +1-646-284-9412
     Email: vding@hfgcg.com

SOURCE China Gengsheng Minerals, Inc.


Source: newswire