China Direct Industries Signs Letter of Intent to Form New Heavy Truck Parts Manufacturing Joint Venture in Its Basic

DEERFIELD BEACH, FL, Jul 30 (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 it has entered into a letter of
intent to form Jinan Zhongsen Machinery Manufacturing Company, Limited
("Zhongsen Machinery") as a foreign invested enterprise. Zhongsen
Machinery is a heavy truck parts manufacturer in the Peoples Republic of
China. Under the proposed terms of the letter of intent, China Direct
Industries will invest approximately $3.3 million over the next two years
to obtain a 45% interest in the joint venture. The letter of intent is
intended to be non-binding and is subject to all necessary due diligence,
China Direct Industry's board of directors' approval and execution of
definitive agreements. Management anticipates closing the transaction
sometime before the end of 2009. Management of China Direct Industries
plans to assist Zhongsen Machinery with its goal of applying for listing
its common shares on a stock exchange in the Peoples Republic of China by
2012.

Located in Jinan Zhangqiu Mingshui Economic Development Zone in Zhangqiu,
Jinan City, Shandong Province, Zhongsen Machinery has over 400 employees
and generated unaudited revenue of over $15 million in 2008 with net
profit of approximately $1.6 million. For the first five months of 2009,
Zhongsen Machinery has generated unaudited revenue of $9.3 million with
net profit of approximately $1.4 million.

Zhongsen Machinery produces over 50 types of heavy truck parts including
axle tubes, axle housings, transmission main shafts and input shafts,
brakes, camshafts, electronic fuel sensors, and automotive electrical
connectors. Zhongsen Machinery distributes its products through
distribution centers and representatives in various provinces throughout
China. Zhongsen Machinery has established a distribution center in
Indonesia as part of its international expansion plans and intends to
establish additional centers in North and South America. Management of
China Direct Industries believes its capital infusion will accelerate the
expansion plans of the new venture and rapidly increase sales growth both
in China and abroad.

Commenting on the letter of intent, Dr. James Wang, Chairman and CEO of
China Direct Industries, stated, "China currently produces about 30% of
the 3.6 million heavy trucks produced each year throughout the world. And
recently China has become a major exporter with international sales
reaching 43,000 units and growing at a compounded rate of 100% over the
past few years. We believe the demand for parts will continue to grow as
customers attempt to increase the life of their capital investment. We
believe these factors, coupled with China's continued growth in market
share, make this industry an excellent opportunistic investment for our
company. We are confident that when this transaction is completed the
management team at Zhongsen Machinery has the right plan to deliver rapid,
profitable sales growth in the coming years, making it a welcome addition
to our Basic Materials Segment."

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 growth
rate of Zhongsen Machinery's expansion plans and its sales and
profitability growth both in China and abroad, the demand for heavy truck
parts, our expected return on our investment in Zhongsen Machinery and
our ability to qualify for listing on a stock exchange in China.

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: richard.galterio@cdii.net
lillian.wong@cdii.net

Copyright 2009, Market Wire, All rights reserved.

-0-