China Direct Industries Receives Several Basic Materials Sales Contracts Valued at $30.5 Million

DEERFIELD BEACH, FL, Jun 16 (MARKET WIRE) --
China Direct Industries, Inc. ("China Direct Industries") (NASDAQ: CDII),
a U.S. owned, rapidly growing holding company operating in China in two
core business segments, pure magnesium production and distribution of
basic materials, announced today that its Basic Materials segment has
received several sales contracts for the delivery of various synthetic
chemicals and reinforcing steel bars which have the potential to generate
approximately $30.5 million in 2009. The contracts come as management of
this segment sees improvements in its business outlook as China's economy
begins to show signs of recovery. With the addition of these sales
contracts, management now believes revenue derived from its basic
materials segment should improve in 2009 compared to 2008 and range
between $65 and $75 million, an increase of over 25%.

Commenting on these sales contracts, Dr. James Wang, Chairman and CEO of
China Direct Industries, stated, "We are pleased to see demand increases
at our basic materials subsidiaries giving us some confidence that China's
recovery is underway. We continue to anticipate a stronger second half of
2009 in this segment as conditions in China continue to improve."

About China Direct Industries, Inc.

China Direct Industries, Inc. (NASDAQ: CDII), is a U.S. owned, rapidly
growing holding company operating in China in two core business segments,
pure magnesium production and distribution and distribution of basic
materials in China. China Direct Industries also provides advisory
services to China based companies in competing in the global economy.
Headquartered in Deerfield Beach, Florida, China Direct Industries
operates 10 subsidiaries throughout China. This infrastructure creates a
platform to expand business opportunities globally while effectively and
efficiently accessing the U.S. capital markets. For more information
about China Direct Industries, please visit http://www.cdii.net.

DISCLOSURE NOTICE:

In connection with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, China Direct Industries, Inc., is hereby
providing cautionary statements identifying important factors that could
cause our actual results to differ materially from those projected in
forward-looking statements (as defined in such act). Any statements that
are not historical facts and that express, or involve discussions as to,
expectations, beliefs, plans, objectives, assumptions or future events or
performance (often, but not always, indicated through the use of words or
phrases such as "will likely result," "are expected to," "will continue,"
"is anticipated," "estimated," "intends," "plans," "believes" and
"projects") may be forward-looking and may involve estimates and
uncertainties which could cause actual results to differ materially from
those expressed in the forward-looking statements. These statements
include, but are not limited to, our expectations regarding the expected
revenues from recent sales contracts and our expectations about revenues
in 2009 in our basic materials segment.

We caution that the factors described herein could cause actual results to
differ materially from those expressed in any forward-looking statements
we make and that investors should not place undue reliance on any such
forward-looking statements. Further, any forward-looking statement speaks
only as of the date on which such statement is made, and we undertake no
obligation to update any forward-looking statement to reflect events or
circumstances after the date on which such statement is made or to reflect
the occurrence of anticipated or unanticipated events or circumstances.
New factors emerge from time to time, and it is not possible for us to
predict all of such factors. Further, we cannot assess the impact of each
such factor on our results of operations or the extent to which any
factor, or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements. This
press release is qualified in its entirety by the cautionary statements
and risk factor disclosure contained in our Securities and Exchange
Commission filings, including our Annual Report on Form 10-K for the year
ended December 31, 2008 and our reports on Form 10-Q.

Contact Information:

For the Company:

China Direct Industries, Inc.
Richard Galterio or Lillian Wong
Investor Relations
Phone: 1-877-China-57
Email: rgalterio@cdii.net
lwong@chinadirectinc.net

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