China Gengsheng Minerals, Inc. Receives a $2.9 Million Short-Term Loan from the Industrial and Commercial Bank of China

China Gengsheng Minerals, Inc. (OTC Bulletin Board: CHGS) ("Gengsheng" or "the Company"), a materials technology company in China with products capable of withstanding high temperature, saving energy and boosting productivity in certain industries such as steel and oil, today announced that Henan Gengsheng Refractories Co., Ltd., its wholly owned subsidiary, has signed a $2.9 million (RMB 20 million) short-term loan agreement with the Industrial and Commercial Bank of China's Zhengzhou City branch in Henan Province ("ICBC Zhengzhou").

"This short-term loan, together with the RMB 10 million short-term loan from Shanghai Pudong Development Bank which we announced in late October, provides the financial resources to support the strong sales momentum in our fracture proppant segment," said Mr. Shunqing Zhang, Chairman and CEO of the Company. "While we still anticipate getting our new fine precision abrasive facility in operation, we expect our proppant products to be an opportunity to generate positive cash flows in the near term. I was quite pleased to announce our $3.5-million contract in the proppant export market last month and I expect today's new loan will help us win more such sales."

Fracture proppants are light, bauxite-based, grain-like materials that have a round and smooth surface and a quality of resisting high pressure and acid corrosion. They are used by oil and gas drillers to extract pockets of oil and natural gas scattered underground.

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