China GengSheng Signs Five-Year Strategic Partnership with a North American Fracture Proppant Distributor

China GengSheng Minerals CHGS today announced that it has signed a five-year strategic partnership agreement with a U.S.-based strategic advisory, marketing and technology company for the marketing and distribution of its fracture proppant products in the North American market. Under the agreement, the parties will collaborate on the development of the fracture proppant market in North America, through the establishment of a jointly-owned brand that will be marketed to North American oil & gas producers, further increasing the GengSheng's international market share. GengSheng will ship 4,000 metric tons of proppant products per month, beginning in July 2011, with volume increasing on a bi-monthly basis. Volume shipments are expected to reach at least 8,000 metric tons per month by October 2011. "From our initial discussions with the partner, we were impressed not only with their capabilities, but also their deep knowledge of and strong connections within the North American fracture proppant market and oil & gas markets, and we believe they will be an ideal partner as we work to expand our presence internationally," said Mr. Shunqing Zhang, Chairman and CEO of China GengSheng Minerals. "In addition to the significant revenue potential this partnership presents, it will provide us with our own brand specific to the North American market. The establishment of this brand will allow us to build awareness of GengSheng among international oil & gas customers, rather than remaining behind the scenes, as we had under our previous OEM sales model."