Third Quarter 2008 Highlights

-- Revenue totaled $13.2 million, down 10.5% from the third quarter of 2007-- Gross Profits totaled $1.90 million, down 18.5% from the third quarter of 2007-- Operating Income totaled $1.44 million down 25% from the third quarter of 2007-- Net Income before taxes during the third quarter of 2008 was $1,148,779-- Net Income during the third quarter of 2008 was $761,400, or $0.03 per share-- Received a partial compensation of $5.11 million by the Chinese government to relocate the Zhaoyuan cement plant-- Received an additional concession of $7.45 million of loan forgiveness with one of our banks

"We are disappointed with our results for the quarter as our revenue, whichwas 100% generated from cement, declined year over year for the thirdquarter primarily due to the softening in the Chinese economy combined withthe general slowdown of general business activities and restrictionsrelated to the Beijing Olympics. Companies in China were restricted inelectrical power usage before and during the Beijing Olympics," said Mr.Wenji Song, Chairman and President of China Shuangji Cement. "Subsequent tothe end of the quarter we were very pleased to announce that we concludednegotiations with one of the banks to which we are indebted for bank loans.The bank forgave $11,110,000 of debt. Of this total, $3,657,000 hadpreviously been anticipated and recorded when the Danzhou plant wasacquired. The additional concession of $7,453,000 will be recorded asincome during the fourth quarter of 2008."

Financial Condition

As of September 30, 2008, China Shuangji Cement had $5.31 million in totalcash, approximately $2.0 million in working capital, and $20.3 million indebt. Shareholder's equity at the end of the third quarter stood at $11.4million, compared to $9.17 million recorded at the end of 2007.

We have been asked by the government of the city of Zhaoyuan to relocateour Zhaoyuan cement plant to make room for the encroaching urbandevelopment of that city. As partial compensation for the relocation, thegovernment paid us $4,668,057 during this third quarter and another$437,630 in October 2008. In October 2008, we began construction on a newplant in an industrial area of the city. These funds have been recorded asa deferred credit and will be amortized over the life of the new plant. InOctober 2008 these funds were used to pay down $5,105,687 of theoutstanding bank loans. This action combined with the above mentioned bankforgiveness has substantially reduced our loans by $12,558,687.

Third Quarter 2008 Results

Net revenue for the three months ended September 30, 2008 decreased$1,554,418, or 10.5%, from $14,779,426 for the three months ended September30, 2007 to $13,225,008 for the three months ended September 30, 2008.Total cement sales declined to 407,244 metric tons for the three monthsended September 30, 2008 from 441,250 metric tons for the three monthsended September 30, 2007.

Gross profit for the three months ended September 30, 2008 decreased$430,382 or 18.5%, from $2,328,467 for the three months ended September 30,2007 to $1,898,085 for the three months ended September 30, 2008 due to thedecrease in sale revenues of cement compared to the increase in rawmaterials.

Operating income was $1,436,247 for the three months ended September 30,2008 and $1,913,820 for the three months ended September 30, 2007. Thedecrease of $477,573, or 25.0%, was primarily the result of decreasedrevenues combined with the increase in general and administrative expenses.

Income before income taxes was $1,756,956 for the three months endedSeptember 30, 2007, compared to income before income taxes of $1,148,779for the three months ended September 30, 2008. The decrease of $608,177, or34.6%, was primarily the result of decreased sales revenues, increasedgeneral and administrative expenses, and decreased VAT refunds.

Income taxes decreased $242,300, or 38.5%, from $629,679 for the threemonths ended September 30, 2007, to $387,379 for the three months endedSeptember 30, 2008. The decrease is primarily due to decreased pretaxincome and a reduced tax rate. The corporate tax rate for 2008 wasdecreased from 33% to 25%.

Net income was $1,127,277 for the three months ended September 30, 2007,compared to $761,400 for the three months ended September 30, 2008, adecrease of $365,877 or 32.5%.

Nine Months 2008 Results

Net revenue for the nine months ended September 30, 2008 increased by$744,681, or 1.88%, from $39,670,754 for the nine months ended September30, 2007 to $40,415,435 for the nine months ended September 30, 2008. Theprimary reason for our increase in net revenue was foreign exchangeconversion. Total cement sales declined from 1,227,343 metric tons for thenine months ended September 30, 2007 to 1,109,675 metric tons for the ninemonths ended September 30, 2008.

Gross profit for the nine months ended September 30, 2008 decreased$174,793 or 3.01%, from $5,809,666 for the nine months ended September 30,2007 to $5,634,873 for the nine months ended September 30, 2008 due to anincrease in raw materials cost.

Operating income was $4,717,155 for the nine months ended September 30,2008 and $4,848,985 for the nine months ended September 30, 2007. Thedecrease of $131,830, or 2.72%, was primarily the result of increased rawmaterials cost combined with the decrease in general and administrativeexpenses.

Income before income taxes was $3,660,602 for the nine months endedSeptember 30, 2008, compared to income before income taxes of $4,177,217for the nine months ended September 30, 2007. The decrease of $516,615, or12.4%, was primarily the result of decreased sales revenues, increased costof goods, decreasing general and administrative expenses, and decreased VATrefunds.

Net income was $2,529,986 for the nine months ended September 30, 2008 or$0.09 per share, compared to $2,695,211 or $0.10 per share for the ninemonths ended September 30, 2007, a decrease of $165,225 or 6.13%.

Business Outlook

"We foresee positive business sales in the fiscal fourth quarter and beyonddue the Chinese government decision to shut down a collection of smallcement plants by the end of the year. This will result in expanding ourcement market and increased commodity price for cement," stated Mr. Song.

China's cement output is forecast to grow 10% per annum between 2008 and2010. Due to the regulatory guidance of "eliminating old capacity beforeestablishing capacity," growth of new cement production capacity maysomehow slow down in the next few years, and it may even result in supplyshortage in some regional markets at some stage. Overall cement prices areexpected to climb steadily upwards, due to factors such as supply-demandstructure, higher costs of coal and electricity input. Organic growth ofthe cement industry should be able to deliver satisfactory operatingresults in the coming years.

The Chinese government has mandated the elimination of 250 million tons ofoutdated cement production capacity by 2010, so it is expected thatindustry consolidation will accelerate and market shares and industryprofits will be further concentrated to strong companies. There are closeto 300 cement plants to be closed in Shandong Province. Therefore, therewill be additional value created by acquisition opportunities as a resultof industry consolidation.

About China Shuangji Cement, Ltd.:

China Shuangji Cement, Ltd., through its affiliates and controlledentities, is a supplier of high-grade cement to the industrial sector inthe People's Republic of China and to international markets. Its processedcement products are primarily purchased by the cement industry for thepurpose of making the cement required for the construction of buildings,roads, and other infrastructure projects. The Company currently produces1,500,000 metric tons of Portland cement annually and is one of thestrongest 500 building materials enterprises in China.

Forward-looking Statements:

The information contained herein includes forward-looking statements. Thesestatements relate to future events or to our future anticipated financialperformance, and involve known and unknown risks, uncertainties and otherfactors that may cause our actual results, levels of activity, performance,or achievements to be materially different from any future results, levelsof activity, performance or achievements expressed or implied by theseforward-looking statements. You should not place undue reliance onforward-looking statements since they involve known and unknown risks,uncertainties and other factors which are, in some cases, beyond ourcontrol and which could, and likely will, materially affect actual results,levels of activity, performance or achievements. Any forward-lookingstatement reflects our current views with respect to future events and issubject to these and other risks, uncertainties and assumptions relating toour operations, results of operations, growth strategy and liquidity. We donot intend to publicly update or revise these forward-looking statementsfor any reason, or to update the reasons actual results could differmaterially from those anticipated in these forward-looking statements, evenif new information becomes available in the future. The safe harbor forforward-looking statements contained in the Securities Litigation ReformAct of 1995 protects companies from liability for their forward-lookingstatements if they comply with the requirements of the Act.

Contact:Wenji SongChairman & PresidentEmail Contact: Email ContactWebsite: www.shuangjicement.com