ShengdaTech Submits Compliance Plan

As previously announced in the Company's press release dated March 15, 2011, the Company appointed a special committee of the Board of Directors to investigate potentially serious discrepancies and unexplained issues relating to the Company and its subsidiaries' financial records identified by the Company's auditors in the course of their audit of the consolidated financial statements for the fiscal year ended December 31, 2010. Due to the pendency of the internal investigation, the Company has not been able to file its Annual Report on Form 10-K in a timely manner.

On March 16, 2011, the Listing Qualifications Department of Nasdaq advised the Company that due to the Company's inability to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2010 with the Securities and Exchange Commission in a timely manner, the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1). Nasdaq also requested that the Company submit, prior to March 31, 2011, a plan to regain compliance. In its plan, the Company (1) noted that although it is uncertain at this time when the special investigation will be completed, the Company aims to file its 2010 Form 10-K (as well as any other reports due prior to the end of such period), thereby becoming compliant with the Nasdaq listing rules, within 180 days of March 16, 2011 and (2) requested that Nasdaq grant the Company through September 12, 2011 (or the period as it deems appropriate) to regain compliance with the listing rules.

About ShengdaTech, Inc.

ShengdaTech is engaged in the business of manufacturing, marketing, and selling nano-precipitated calcium carbonate ("NPCC") products. The Company converts limestone into NPCC using its proprietary and patent-protected technology. NPCC products are increasingly used in tires, paper, paints, building materials, and other chemical products. In addition to its broad customer base in China, the Company currently exports to Singapore, Thailand, South Korea, Malaysia, India, Latvia and Italy. For more information, contact CCG Investor Relations directly or go to ShengdaTech's website at http://www.shengdatechinc.com.

Safe Harbor Statement

Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995.  These statements include, without limitation, statements regarding the Company's ability to regain compliance with Nasdaq listing rules by September 12, 2011.  Actual results could differ materially.  Nasdaq may not find the Company's compliance plan acceptable; Nasdaq may not grant the Company until September 11, 2011 to regain compliance; and the Company may be unable to complete the special investigation or otherrwise regain listing compliance on a timely basis or at all. We have based these forward-looking statements largely on our current expectations and projections about future events. You are urged to consider the factors discussed above carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.

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