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China Health Resource Completes Key Research Project - New Proprietary Product Lines

SHANGHAI, Dec. 5, 2011 /PRNewswire-Asia/ -- China Health Resource, Inc. (OTCBB: CHRI), through its wholly owned subsidiary Suining Yinfa DAR Industrial Co, Ltd (Yinfa), the leader in GAP standard for Dahurian Angelica Root (DAR) in the People's Republic of China under the registered Trademark Chuan Baizhi™, announces completion of key scientific research project in collaboration with Chengdu Chinese Traditional Medicine & Science University (Chengdu TCM University) and the Sichuan Chinese Medicine Research Institute (Medicine Institute).

This research addresses innovative products in the areas of cough, diabetes, headaches, and chronic fatigue OTC and TCM pharmaceuticals. "We expect to announce some of the products addressed by this research regarding clinical trials and other commercial phases of development next," said Jiayin Wang, Chairman and CEO of CHRI.

Traditional Chinese medicine (TCM) pharmaceutical products, along with western pharmaceuticals, are essential to the central healthcare system in China. The industry has been and is expected to continue growing significantly. In recent years in western countries such as the U.S., awareness of the benefits of TCM products has become increasingly attractive.

"This research is key for the company's growth strategy as we become a more vertically integrated company in the near future. It allows us to maintain a strong competitive edge by managing the rare supply of pharmaceutical grade ingredients and it provides management direction for the effective deployment of our capital and resources in a manner that brings short and longer terms investment results," said Jiayin Wang, Chairman and CEO of CHRI. "The TCM pharmaceutical industry is highly fragmented especially in China and standards are needed to safeguard quality. Our early investment and major commitment in GAP standard DAR has resulted in a successful project with scientific discoveries which will increase our business significantly. We at CHRI are committed to establishing GAP standards to major TCM herbs for pharmaceutical use. CHRI is dedicated to this mission," added Mr. Wang.

The research project, which was formally started in April 2008, covered research related to DAR, Frictillaria, Berberine and other TCM herbs considered by company and industry experts to address major healthcare problems. The research included studies such as "Study of Primary Processing of Angelica Dahurian", "Establishment of Evaluation System for Angelica Dahurian Quality", "Study on Obtaining Effective Ingredients in Angelica Dahurian", "Development of New Headache Medicine in Tablets", "Research and Development of Angelica Dahurian (DAR) for Heath Care and Related Products" and others. These studies use DAR as a key ingredient in combination with other natural herbs. DAR is known for its properties to treat pain, swelling and pustule.

The research was supported by government grants and the intellectual property and commercial rights belongs to the company. The project incurred total expense of 37.5 million RMB. The research by Yingfa, Chengdu TCM University and the Medicine Institute had received Governmental Research Support Grant of 4.2 million RMB. The Company contributed capital and our GAP DAR expertise. CHRI matched with as high as 4.1 million RMB. The project report and results were officially accepted in the presence of a group of evaluating government specialists at the Provincial Bureau of Technology.

"We are very excited at the completion of this research project and thankful to our partners Chengdu TCM University and the Medicine Institute for their full cooperation. The level of scientific expertise in the TCM field was shown to be of the highest caliber and the results speak for themselves. This research will result in enhancing many of our existing products and more importantly provide the company with new proprietary products that can address health related ailments in more effective ways than at present adding to our competitive edge in the market," said Jiayin Wang, Chairman and CEO of CHRI.

About CHRI

China Health Resource, Inc. engages in the development, manufacturing, processing, marketing and sale of raw and pharmaceutical TCM products including Dahurian Angelica Root (DAR) and Rhizoma Gastrodiae and is only the provider of GAP quality DAR in the People's Republic of China under the registered Trademark Chuan Baizhi™. DAR, which is also known as "Bai Zhi" in Mandarin Chinese, is an herb that is employed as an ingredient in medicine, cosmetics and food, as well as used in TCM for the treatment of pain, swelling and pustule. The Company's DAR-related products include the Bailing Capsule, Yisheng Capsule, Kimchee-Mate and Fragrant Bag, all of which are sold through regional distributors. The Company was founded in 2001 and is based in Suining, Sichuan Province.

Certain statements in this document regarding financial matters, other than historical facts, and statements of our expectations, intentions, plans and beliefs, constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to certain events, risks and uncertainties that may be outside our control. The words "believe", "expect", "anticipate", "optimistic", "intend", "will", and similar expressions identify forward-looking statements. The company intends that such proclamations about future expectations, including future revenues and earnings, future business expansion plans, and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results. These and other risks and uncertainties related to our business are described in greater detail in our filings with the Commission. The foregoing information should be read in conjunction with these filings. We disclaim any intention or obligation to update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made.

SOURCE China Health Resource, Inc.
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