Grant Awarded to Encourage China Sun Group's Lithium Iron Phosphate Development

China Sun Group High-Tech Co., Ltd. (OTC Bulletin Board: CSGH) ("China Sun Group" or the "Company"), a vertically integrated supplier of raw materials for rechargeable Lithium-ion (Li-ion) batteries in China, announced today that it has received a government subsidy for its cutting edge Lithium Iron Phosphate (LIP) development project for use in the new energy automobile industry.

The subsidy is approximately $44,000, paid by the Dalian Economic and Information Technology Committee to encourage China Sun Group's product research and development of LIP, the main raw material used in lithium power batteries.

China Sun Group was one of only nine companies to receive this government subsidy. This is the first time that the Dalian government has offered this subsidy to companies that have the greatest potential of developing technology for use in the new energy automobile industry. The government's overall aim is to accelerate re-construction of Dalian's traditional industries, as well as to promote the development of new key technologies by companies based in Dalian.

"China Sun Group is committed to being a leading anode material supplier for Li-ion batteries used in the new energy automobile industry, and we continuously strive to provide our clients with high quality products," said Mr. Bin Wang, Chairman and CEO of China Sun Group. "I am delighted to receive this honor, which will help China Sun Group contribute to the development of the new energy automobile industry in China and Dalian by increasing our research and development investment and expanding our marketing channels."

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