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China Carbon Graphite Group, Inc. to Integrate Natural Graphite Mines

NEW YORK, Feb. 15, 2011 (GLOBE NEWSWIRE) -- China Carbon Graphite Group, Inc. (OTCBB:CHGI) ("China Carbon" or the "Company") plans to integrate natural graphite mining capacity in Inner Mongolia.
/ Source: GlobeNewswire

NEW YORK, Feb. 15, 2011 (GLOBE NEWSWIRE) -- China Carbon Graphite Group, Inc. (OTCBB:CHGI) ("China Carbon" or the "Company") plans to integrate natural graphite mining capacity in Inner Mongolia.

Natural graphite comes in several forms: Flake, amorphous and lump. Natural flake and synthetic graphite are currently used in renewable energy solutions such as lithium-ion batteries as well as in fuel cells, and in nuclear power stations. Very fine grades of natural flake graphite can also be transformed into synthetic diamonds.

To better protect the environment and to curb pollutants generated during the production of certain natural resources, in 2010, the Chinese government decided to implement a number of new restrictions on natural resource industry sectors, including certain export restrictions. As a result of these restrictions, numerous mines were limited in their operations, and the market prices of rare earth elements and certain natural resources that originate in these mines, such as graphite, were driven up.

Graphite is widely used in many different industries. It is used as a refractory material in the steel industry, and as a conductive material, a lubricating material and a metallurgical material in various other industries including aerospace, automotive, semiconductor, nuclear power, battery manufacturing, and generally as a high-tech composite material. For this reason, China has included graphite in its protective measures taken to assure domestic supply, much in the same way it has treated rare earth elements.

As a result, Graphite saw price appreciation in 2010 along with rising Chinese demand for all types of industrial minerals, including the increasingly popular rare earth elements. We believe this upward trend will continue in 2011.

In light of China's increasingly restrictive posture on rare earth and other important resources, as well as world dependency on China for graphite supply (it has been reported that China exports over 70% of world's graphite every year), graphite is on course to become a very important strategic resource. As one of the few listed companies in the graphite industry,the Company has the state-of-art technology in quality control and environment protection, and expects to enjoy sustained and rapid growth in the near future, since the new restrictions are expected to eliminate those less efficient competitors in this industry.

Since the beginning of 2011, aside from expanding production capacity, China Carbon is seeking to initiate an acquisition, with the objective of becoming a vertically integrated leader in the Chinese graphite industry.

China Carbon is located in Inner Mongolia, a region with very rich mineral resources. Beginning in 2011, the Company plans to gradually integrate upstream resources of natural graphite mines. With the Company's extensive management experience and relationships in the carbon and graphite industry, management is confident in the Company's ability to achieve current objectives.

About China Carbon Graphite Group, Inc.

China Carbon Graphite Group, through its affiliate, Xingyong Carbon Co., Ltd., manufactures carbon and graphite based products in China. The company is the largest wholesale supplier of fine grain and high-purity graphite in China and is one of the nation's top overall producers of carbon and graphite products. Fine grain graphite is widely used in smelting for colored metals and rare-earth metal smelting as well as in the manufacture of molds. High purity graphite is used in metallurgy, mechanics, aviation, electronics, atomic energy, the chemical industry, food industry and a variety of other fields. In September 2007, the company was approved and designated by the Chinese Ministry of Science & Technology as a "National Hi-tech Enterprise" amongst over 400 other carbon graphite producers in China. China Carbon is the only non-state-owned company to receive this honor. For more information, visit

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. 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, such as an inability to identify a suitable target, an inability to negotiate the terms of any such acquisition on terms favorable to us, the inability to successfully integrate an acquired company, an inability to finance any such acquisition and the failure of any acquired company to perform at the levels we anticipate at the time of an acquisition.

CONTACT: Nuwa Group, LLC Investor Contact: Mr. Kevin Fickle +1-925-330-8315