SOURCE: Stone Mountain Resources, Inc.

July 09, 2007 08:00 ET

Stone Mountain Acquires Zhejiang Kandi Vehicle Co. Ltd.

JINUA CITY, CHINA--(Marketwire - July 9, 2007) - Stone Mountain Resources, Inc. ("Stone Mountain" or the "Company") (OTCBB: SMOU) announced today that it has entered into and closed on a Share Exchange Agreement (the "Agreement") by and among the Company, Continental Development Limited ("Continental") and ExcelVantage Group Limited ("ExcelVantage"), 100% owner of Continental. Pursuant to the Agreement, Continental became a wholly owned subsidiary of Stone Mountain. Following closing of the reverse merger, the business of Stone Mountain became that of Continental's wholly owned subsidiary, Zhejiang Kandi Vehicle Co., Ltd. ("Kandi").

Continental conducts its business through its wholly owned operating subsidiary, Kandi, which is principally engaged in machinery manufacturing, with special purpose vehicles and Go-Karts as its leading products. Kandi also manufactures super mini-cars as a fashionable, energy-saving alternative to standard-sized automobiles.

Effective with the close of the reverse merger, Stone Mountain appointed Hu Xiaoming as Chief Executive Officer and President, and Zhu Xioying as Chief Financial Officer.

Hu Xiaoming has been the Chairman of the Board of Directors and the corporate legal representative for Kandi since 2005. Prior to that, Mr. Xiaoming was the Chief Scientist of an electric vehicle development project, and served as director of various mini car and electric car manufacturers. He owns three invention patents, five utility model patents, and over ten appearance design patents.

Zhu Xiaoying received a bachelors degree in accounting from Hangzhou Electronic Engineering University, joined Kandi in September 2003 and was appointed acting CFO and director of the company. Previously, she worked as accounting manager for Zhejiang Yongkang Automobile Manufacture Co.

"We are extremely pleased with this transaction and very optimistic about our Company's future. The completion of this transaction will allow the Company to access North American investors and capital markets which will further enhance the growth potential of the Company," stated Stone Mountain CEO Hu Xiaoming.

A number of statements contained in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking statements involve a number of risks and uncertainties, including a timely closing of the contemplated acquisition, market acceptance of Sibling's entertainment projects and the management services, competitive market conditions, successful integration of the companies, and the ability to secure additional sources of financing. The actual results that Stone Mountain may achieve could differ materially from any forward-looking statements due to such risks and uncertainties, including but not limited to, the fact that no assurance can be given that the proposed acquisition of Sibling described above will be consummated on the above terms, or at all. Stone Mountain encourages the public to read the information provided here in conjunction with its most recent filings on Form 8K and Form 10KSB. Stone Mountain public filings may be viewed at www.sec.gov.

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