Renhuang signs Acquisition Agreement with Forest Bureau

Jul 9 2010

Renhuang Pharmaceuticals, Inc. (NYSE Amex: CBP) ("Renhuang" or the "Company"), a developer, manufacturer and distributor of botanical products, bio-pharmaceuticals and traditional Chinese medicines ("TCM"), today announced that on July 8, 2010, the Company signed an Acquisition Agreement (the "Agreement") with Yichun Red Star Forest Bureau of Heilongjiang Province ("the Forest Bureau") for indefinite exclusive access to 100,000 acres of wild Siberian Ginseng in Heilongjiang Province. Siberian Ginseng is a plant with medically-established anti-depressant and mood regulation qualities and is also an active ingredient in the Company's market-leading line of all-natural anti-depressant medications.

Under the terms of the Agreement, Renhuang will be granted permanent exclusive rights to purchase the wild Siberian Ginseng grown on 100,000 acres. The Siberian Ginseng plant yield is expected to amount to an estimated 500 tons annually. The Siberian Ginseng fields will be maintained and harvested by personnel supervised by the Forest Bureau and the Company will pay a lower than prevailing fair market price for the Siberian Ginseng harvested. Renhuang will be responsible for continued maintenance and protection of wild resources to make this area a professional Siberian Ginseng base that produces additional Ginseng. In addition to generating income for the Forest Bureau, this resource base will provide employment opportunities for local farmers.

"We are excited about securing exclusive access to the world's finest quality wild Siberian Ginseng," said Mr. Shaoming Li, Chairman and CEO of Renhuang. "It is also a great honor to work on a project with Yichun Red Star Forest Bureau to assist in the economic development of the region and improve the cultivation of this precious natural resource. This Agreement provides us a reliable and abundant supply of Siberian Ginseng at an attractive price, resulting in a significant competitive advantage in the market."