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China Bio Energy Holdings Group Announces Financing and Exercise of Warrants
Date:10/16/2008

ngs per share in 2008 of $28 million and $0.73, respectively. Should the make-good targets not be met, the purchaser of the debenture will receive up to 2.5 million shares from the Company's largest shareholder. Note that this share transfer would have no impact on the total number of shares outstanding. Secondly the debenture agreement provides for an escrow hold back of $250,000 until the Company meets the corporate governance standards set by the Nasdaq exchange which is consistent with the Company's existing goal of transitioning to the Nasdaq at the earliest date possible.

About China Bio Energy Holdings Group

CBEH is a distributor of petroleum-related products including gasoline, diesel, and heavy oil, and a manufacturer and distributor of bio-diesel fuel. CBEH's bio-diesel fuel is made at its 100,000-ton capacity facility in Shaanxi province. Feedstock consists of naturally growing non-edible seeds and waste oil from restaurants. CBEH's bio-diesel can be used as a complete substitute for petro-diesel and can be blended with petro-diesel at any ratio. The Company's products are sold via its own distribution network, which includes four fuel depots in Shaanxi that have both road and rail access.

Safe Harbor Statement

This press release contains certain statements that may include "forward- looking statements". All statements other than statements of historical fact included herein are "forward-looking statements". These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of
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SOURCE China Bio Energy Holdings
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