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China Direct Industries Issues Clarifying Press Release Regarding Its Acquisition of 80% of Ruiming Magnesium From Pine Capital

^{Published on 2010-07-16 05:10:45 - Market Wire}
 

DEERFIELD BEACH, FL--(Marketwire - July 16, 2010) - China Direct Industries, Inc. ("China Direct Industries") (NASDAQ: [ CDII ]), a U.S. owned holding company operating in China in two core business segments, pure magnesium production and distribution of basic materials, announced today that it has issued this press release to clarify that it has acquired 80% of Taiyuan Ruiming YiWei Magnesium Industry Co., Ltd. ("Ruiming Magnesium") Ruiming Magnesium from Pine Capital Enterprises, Inc. and Taiyuan Yiwei Magnesium Industry Co., Ltd. The approval by the board of directors of China Direct Industries was the final step in the acquisition process.

As previously announced, Ruiming Magnesium adds 14,000 metric tons of annual magnesium production capacity, with the potential to generate up to $35 million in revenue per year at current price levels, including annual production capacity of 10,000 metric tons of magnesium powder and 4,000 tons of magnesium ingot. Ruiming Magnesium enables the IMG branded operations of China Direct Industries to offer a wider array of magnesium products to its customers throughout the world.

About China Direct Industries, Inc.

China Direct Industries, Inc. (NASDAQ: [ CDII ]), is a U.S. owned holding company operating in China in two core business segments, pure magnesium production and distribution and distribution of basic materials in China. China Direct Industries also provides advisory services to China based companies in competing in the global economy. Headquartered in Deerfield Beach, Florida, China Direct Industries operates 8 subsidiaries throughout China. This infrastructure creates a platform to expand business opportunities globally while effectively and efficiently accessing the U.S. capital markets. For more information about China Direct Industries, please visit [ http://www.cdii.net ].

DISCLOSURE NOTICE:

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Direct Industries, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our expectations concerning our ability to achieve full production capacity at Ruiming Magnesium and our prospects for sales and market prices of our magnesium products.

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Transition Report on Form 10-K for the fiscal year ended September 30, 2009.