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China Gengsheng Minerals Announces Sales Contract for Fine Precision Abrasives

January 20, 2010

GONGYI, China, Jan. 20 /PRNewswire-Asia-FirstCall/ — China Gengsheng
Minerals, Inc. (OTC Bulletin Board: CHGS) (“Gengsheng”), a high-tech
industrial materials products company in China with products capable of
withstanding high temperatures, saving energy and boosting productivity in
certain industries such as steel and oil, today announced that it has entered
into an exclusive sales agreement with Junfu Sheng Precision Co., Ltd. to
market and sell Gengsheng’s fine-precision abrasives products in the eastern
part of Guangdong Province. Under terms of the agreement, effective January
10, 2010
, Junfu Sheng will market and sell a minimum of RMB 3 million (US$0.44
million
) worth of the company’s specialty abrasives within 12 months of the
agreement. Products to be marketed include fine precision abrasives used for
polishing solar panels and precision equipments and for wire-slicing silicon
wafers in the solar industry.

Mr. Shunqing Zhang, Chairman and CEO of China Gengsheng, stated: “This
agreement represents the first sales contract of our channel strategy, which
is to find more abrasives dealers in different areas in China and to focus our
marketing onto large-scale customers in the solar industry. We are talking
with more distributors all across China and will select them according to
their customer base, scale, experience and reputation, among other standards,
in order to aggressively expand our abrasives business.”

China Gengsheng opened its fine-precision abrasives factory in April 2009
and began first commercial production of abrasives during the fourth quarter.
Fine-precision abrasives are a green silicon carbide-based micro-powder used
to cut silicon wafers. With an annual production capacity of 20,000 metric
tons, the company’s new state-of-the-art facility is one of the largest
silicon carbide manufacturing facilities in mainland China.

The market for the abrasives in mainland China and Taiwan is estimated at
US$2 billion, and the market for the solar-related abrasive products in China
is US$750 million. Fine precision abrasives sell for an average of US$4,200
per metric ton.

About China Gengsheng Minerals, Inc.

China Gengsheng Minerals, Inc. ( http://www.gengsheng.com ) develops,
manufactures and markets a broad range of high-tech industrial material
products, including monolithic refractories, industrial ceramics, fracture
proppants, and fine-precision abrasives. A market leader offering customized
solutions, Gengsheng sells its products primarily to the iron-and-steel
industries 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.

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 obligations under its full-service contracts;
the profit margin, timely payments and other economic benefits the Company
expects to receive under such contracts, the Company’s ability to maintain its
customer relations; 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:
    China Gengsheng Minerals, Inc.
     Ms. Wendy Sun
     Finance Manager and Investor Relations
     Tel:   +86-159-3870-8666
     Email: wendyshure@gmail.com

     Mr. Shuai Zhang
     Investor Relations
     Tel:   +86-135-2551-0415
     Email: shuai298@126.com

    In the U.S.:
    RedChip Companies, Inc.
     Mr. Dave Gentry
     President
     Tel:   +1-407-491-4498
     Email: info@redchip.com

SOURCE China Gengsheng Minerals, Inc.


Source: newswire