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China Agri-Business Acquired Management and Operation Rights of Shaanxi Qinfeng Agrochemical Inc. in Xi'an, China
Date:6/24/2011

f production and annual safety production inspections; (5) to be responsible for the validation and registration of fertilizer licenses; (6) to be responsible for the maintenance of current facilities and new equipment if needed; (7) to be responsible for the purchase of workers' compensation insurance; (8) to be responsible for the payment of wages and salaries; (9) to be responsible for all civil administrative and criminal charges in connection with the operation of Qinfeng's assets that occur during the Term.

As consideration for entering into the agreement, the Company paid Qinfeng 1.2 million RMB (approximately $185,000) on June 14, 2011. From January 1, 2012 to December 31, 2013, the Company must pay an aggregate of 2.4 million RMB each year to Qinfeng, payable in installments of 1.2 million RMB (approximately $185,000) due within the first 15 business days of January and July of each year.

Mr. Liping Deng, Chief Executive Officer, President and Director of China Agri-Business, commented, "We are very pleased to have this great opportunity to manage the operations of Qinfeng. Qinfeng has a total of 43 products, licenses or permits registered with Chinese government authorities. Among these products, two agrochemical products, diafenthiuron and prochloraz, are important raw materials for many lower-toxicity pesticide products. Both diafenthiuron and prochloraz products may be sold in domestic markets or exported to European and South-Eastern Asia markets." Mr. Liping Deng continued, "We believe that acquiring the management and operating rights will enable us to expand our product mix quickly and to maintain a sustainable long-term growth. We hope that we will have the opportunity to acquire Qinfeng's business, including assets and intangible assets, in the future."

About China Agri-Business, Inc.

China Agri-Business, Inc., through its operating company in China, Shaanxi Xinsheng Centennial Agriculture and Technology Co., Ltd
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SOURCE China Agri-Business, Inc
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