a Sun Group Provides Updates to the 470 Tons Lithium Iron Phosphate (LIP) Contract Signed in November and Secures Additional Raw Material Supply

DALIAN, China, Dec. 13, 2010 /PRNewswire-Asia/ -- China Sun Group High-Tech Co. (OTC Bulletin Board: CSGH) ("China Sun Group" or the "Company"), a vertically integrated supplier of raw materials for rechargeable lithium–ion (Li-ion) batteries in China, today provides updated information regarding the contract with Henan Huanyu Sai Er New Energy Technology Co., Ltd. ("Sai Er New Energy"), a subsidiary of Henan Huanyu Power Source Co., Ltd.("Huanyu"), for 470 tons of lithium iron phosphate (LIP) signed in November (the "Contract"), and secures additional raw material supply.

The Contract provides for monthly tonnage delivery to Sai Er New Energy, amounting to a total of 470 tons of lithium iron phosphate in calendar year 2011. In addition to 60 tons of LIP materials sold to Huanyu, China Sun already has 530 tons of LIP orders, expected to be delivered before the end of December 2011. According to the recent China domestic average sales price of LIP of US$ 24,000 per ton, this 530 tons of LIP sales is valued at approximately US$ 12.7 million. The actual sales revenue will depend on the final outcome of the negotiations.

In order to establish the work plan for 2011 and accelerate the expansion of strategic objectives, China Sun Group recently hosted the Dalian Xinyang High-Tech 2011 Annual Conference for its employees, including two seminars: technology research and development and the acceleration of the process of strategic expansion, one month ahead of schedule. This conference greatly increased motivation of the management teams and employees.

During the annual conference, the Company's management also developed a solution to maintain stable supply and high quality of input material for the manufacture of LIP products due to increased LIP demand that has resulted in recent sales contracts exceeding previous expectations. After a careful review of potential LIP raw material suppliers, China Sun signed with two suppliers, Guangxi BMB Science and Technology Co., Ltd. ("BMB") and Hubei Haoyuan Material Technology Company. ("Haoyuan material").

Under the agreement, BMB and Haoyuan material will supply a total of 350 tons and 240 tons of iron phosphate materials respectively to China Sun Group during the calendar year 2011, which accounts for approximately 84% of China Sun's total planned purchasing volume during the year.

"We are honored to be in a strategic alliance with Sai Er New Energy and Huanyu and to work closely with our partner in terms of the production process for lithium ion battery development. We are confident that we can efficiently expand our production capacity in the near future to meet the requirements of Sai Er New Energy and Huanyu's projects. We are also pleased to have signed two new high-quality suppliers, which will further enable us to secure access to sufficient raw material," commented Mr. Guosheng Fu, CEO of China Sun Group. "As the Chinese government continues to support the development of energy-saving cars and other sustainable products and technologies, we remain positive that we will be successful in positioning China Sun Group and continue growing. Our goal is to establish a complete supply chain for materials, components and the finished lithium ion phosphate product, which is the LIP battery."

About Guangxi BMB Science and Technology Development Co., Ltd.

Guangxi BMB Science and Technology Development Co., Ltd. ("BMB") is a China-US joint venture high-tech enterprise founded in September 2006 with registered capital of RMB 60 million. The company's business focus is research, production and sales of battery level iron phosphate (for high safety lithium-ion battery anode materials used in the production of lithium iron phosphate) and ceramic grade iron phosphate (used in the ceramic industry). At present, BMB has completed its first phase of production with annual output of 2,000 tons anode iron phosphate. In the next one and a half years, BMB plan to achieve 10,000 tons production capacity, which will enable it to become one of the world's largest professional production bases of iron phosphate.

About Huanyu Power Source Co., Ltd.

Huanyu Power Source Co., Ltd. began its main business of R&D, manufacture and distribution of replacement batteries in 1982. Huanyu has established a hi-tech industrial park engaged in the production of Nickel Cadmium, Nickel Hydrogen, Lithium ion and Lead Acid batteries, in more than 100 models with a daily capacity in excess of 2 million secondary batteries. Huanyu currently has more than 10,000 employees with 400 dedicated to research.

About China Sun Group High-Tech Co.

China Sun Group High-Tech Co. ("China Sun Group") produces anode materials used in lithium ion batteries. Through its wholly-owned operating subsidiary, Dalian Xinyang High-Tech Development Co. Ltd ("DLX"), the Company primarily produces cobaltosic oxide and lithium cobalt oxide. According to the China Battery Industry Association, DLX has the second largest cobalt series production capacity in the People's Republic of China. Through its research and development division, DLX owns a proprietary series of nanometer technologies that supply state-of-the-art components for advanced lithium ion batteries. Leveraging its state-of-the-art technology, high-quality product line and scalable production capacity, the Company has recently diversified into the manufacture of LIP and plans to forward integrate to manufacture of power Li-ion batteries.  For more information, visit http://www.china-sun.cn.

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