SOURCE: China Direct Industries, Inc.

June 16, 2009 08:00 ET

China Direct Industries Receives Several Basic Materials Sales Contracts Valued at $30.5 Million

DEERFIELD BEACH, FL--(Marketwire - June 16, 2009) - China Direct Industries, Inc. ("China Direct Industries") (NASDAQ: CDII), a U.S. owned, rapidly growing holding company operating in China in two core business segments, pure magnesium production and distribution of basic materials, announced today that its Basic Materials segment has received several sales contracts for the delivery of various synthetic chemicals and reinforcing steel bars which have the potential to generate approximately $30.5 million in 2009. The contracts come as management of this segment sees improvements in its business outlook as China's economy begins to show signs of recovery. With the addition of these sales contracts, management now believes revenue derived from its basic materials segment should improve in 2009 compared to 2008 and range between $65 and $75 million, an increase of over 25%.

Commenting on these sales contracts, Dr. James Wang, Chairman and CEO of China Direct Industries, stated, "We are pleased to see demand increases at our basic materials subsidiaries giving us some confidence that China's recovery is underway. We continue to anticipate a stronger second half of 2009 in this segment as conditions in China continue to improve."

About China Direct Industries, Inc.

China Direct Industries, Inc. (NASDAQ: CDII), is a U.S. owned, rapidly growing holding company operating in China in two core business segments, pure magnesium production and distribution and distribution of basic materials in China. China Direct Industries also provides advisory services to China based companies in competing in the global economy. Headquartered in Deerfield Beach, Florida, China Direct Industries operates 10 subsidiaries throughout China. This infrastructure creates a platform to expand business opportunities globally while effectively and efficiently accessing the U.S. capital markets. For more information about China Direct Industries, please visit http://www.cdii.net.

DISCLOSURE NOTICE:

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Direct Industries, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our expectations regarding the expected revenues from recent sales contracts and our expectations about revenues in 2009 in our basic materials segment.

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2008 and our reports on Form 10-Q.

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