China Direct Industries, Inc., a U.S.-owned holding company operating in China in two core business segments, pure magnesium production and distribution of basic materials, recently announced that its wholly owned subsidiary, CDII Trading, Inc. has entered into a 12-month contract to supply manganese ore to a privately held China-based trading and refining company.

CDII Trading expects to complete the first shipment in July 2010 after finalizing financing to produce the required quantity of ore to fulfill this contract. After completing the initial shipment, CDII Trading expects to supply additional monthly shipments to its China-based buyer over a 12-month period. The company anticipates revenue of up to $18 million over the course of the one-year contract.

Mr. Ross A. Friedman, vice president of commercial trading at CDII Trading, stated, “This agreement to secure the quantity of manganese ore from our Chilean miner is pivotal to our future success. Upon completion of the first shipment and the buyer’s approval for future shipments in China, we believe this contract represents a potential long term continuous revenue stream for us.” Mr. Friedman continued, “We anticipate it will also set the stage for other similar arrangements for other miners that we are in various stages of negotiations with for numerous ores such as Iron, Chromium and Copper, to name a few. We believe that tapping into the vast mineral reserves in Chile in this fashion will truly be a springboard to a rapid acceleration of growth in our trading operations.”

For additional information, please visit: www.cdiitrading.com.