China Green Agriculture, Inc. (CGA) Announces VAT Exemption for Organic Fertilizer Product Sales

XI’AN, China, Nov. 18, 2009 (PRNewswire-Asia-FirstCall) — China Green Agriculture, Inc. (NYSE Amex: CGA; “China Green Agriculture” or “the Company”), a leading producer and distributor of humic acid (“HA”) based compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., announced that the National Taxation Bureau of Yangling Hi-tech Development Zone has recently approved a value-added tax (“VAT”) exemption for Shaanxi Techteam Jinong Humic Acid Product Co., Ltd.

Jinong previously was paying a VAT rate of 13% for producing and distributing humic acid-based compound fertilizer products. The application was submitted to the local Taxation Bureau in May 2009. This VAT exemption will be valid through December 31, 2015 based on the “Notice of Exempting Value Added Tax of Organic Fertilizer” (2008 No.56).

“We are extremely pleased with the tax advantaged status that China Green Agriculture has received from the PRC government as it will have a significant and immediate effect on our net income while further expanding margins to 3-5%,” stated Mr. Tao Li, Chairman and CEO of China Green Agriculture. “Our usage of humic acid in our products substantially increases the fertility of soil while meeting the country’s highest environmental standards. We currently use humic acid as the base organic element in our fertilizer. We commend the government’s commitment to improving the environment, while increasing and ensuring the highest standards across the industry.”

About China Green Agriculture, Inc.

China Green Agriculture, Inc. produces and distributes humic acid (“HA”) based liquid compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., (“TechTeam”). TechTeam produces and sells over 130 different kinds of fertilizer products per year. All of TechTeam’s fertilizer products are certified by the PRC government as green food production materials, as stated by the China Green Food Research Center. TechTeam’s fertilizers are highly concentrated liquids which require an application of approximately 120 ml per mu per application. Its average end user has approximately four mu of land (one mu = .165 acres). Techteam also has the capacity to produce highly concentrated powdered fertilizers. China Green Agriculture currently markets its fertilizer products to private wholesalers and retailers of agricultural farm products in 21 provinces, 4 autonomous regions and 3 municipal cities in the PRC. The leading five provinces which collectively accounted for 36.4% of the Company’s fertilizer revenue for the year ended June 30, 2009 are Shandong (9.5%), Shaanxi (8.3%), Heilongiiang (6.5%), Xinjiang (6.5%) and Anhui (5.9%). For more information, visit http://www.cgagri.com .

Safe Harbor Statement

This press release contains forward-looking statements concerning the Company’s business, products and financial results. The Company’s actual results may differ materially from those anticipated in the forward-looking statements depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology, and various other factors beyond the Company’s control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company’s reports filed with the Securities and Exchange Commission. China Green Agriculture undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.