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China Health Resource Signs Two New Agreements for the Sale of Gastrodia Valued at $10 Million USD (Corrected*)
Date:1/26/2012

SICHUAN, China, Jan. 26, 2012 /PRNewswire-Asia/ -- China Health Resource, Inc. (OTCBB: CHRI.OB News), announced today that it has signed two new agreements for the sale of Gastrodia valued at 67.5 Million RMB or approximately $10.7 Million USD (Corrected*).  The agreements are with Chongqing Valley Pharm Corp and Sichuan Zhiyuanguanghe Pharm Corp and provide for a combined purchase total of 550 tons of Gastrodia from January 1, 2012 to December 31, 2012.

CHRI recently signed a 3 year exclusive agreement with a leading producer of Gastrodia in Pingwu, Sichuan. The quality of Gastrodia under this supply agreement is expected to meet the latest formal TCM pharmaceutical standard and gives CHRI continued leverage in the Traditional Chinese Medicine (TCM) marketplace in China, as the main controlling distributor and supplier of pharmaceutical grade Gastrodia (also known as Tianma).

"Demand is high for pharmaceutical grade Gastrodia and the company expects both our Gastrodia product revenues and bottom line will surpass last year.  We have started the new year with strong demand aided by our brand recognition and high quality GAP standards," stated Jiayin Wang, Chairman and CEO of CHRI.

Gastrodia is recognized as one of the higher value herbs in TCM.

"We have announced continuous record growth for 2011 and anticipate continued double-digit growth for Gastrodia product line in 2012.  We anticipate another record breaking year in our revenues and profits," says Weihai Liu, CFO of CHRI.

"In addition to great opportunities for Gastrodia, Dahurian Angelica (DAR) is successfully established as a franchise.   With our Dragonhead Enterprise status, which confirms CHRI as a quality-oriented government sanctioned enterprise, we are positioned  for a large scale global market penetration for CHRI's products," says Jiayin Wang.

(*) "An earlier version of this release erron
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SOURCE China Health Resource, Inc.
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