China Green Material to Use Proceeds From Private Placement for Marketing

China Green Material Technologies, Inc. (OTC Bulletin Board: CAGM, or the "Company"), a Chinese leader in developing and manufacturing starch-based biodegradable containers, tableware and packaging materials, today announced that it has entered into a definitive agreement with an investor for the issuance and sale of 1,866,666 shares of its common stock for gross proceeds of $2,800,000.

In connection with the private placement, the parties entered into a lock-up agreement, under which the securities being issued are subject to a 24-month hold period expiring June 25, 2012. A copy of the lock-up agreement will be filed by the Company with the SEC.

The Company plans to use the net proceeds to invest in sales and marketing and for working capital. During the balance of the year, the Company also expects to deploy capital toward bringing its new manufacturing facility online, resulting in an increase in manufacturing capacity of approximately 45%.

The securities offered in the private placement have not been registered under the Securities Act of 1933, as amended, or any state securities laws and were sold in a private placement transaction in reliance on Section 4(2) of the Securities Act and Regulation S.