Huaxing Machinery Corp. Reports the Successful Development and Sale of New Product and Appointment of CEO

Huaxing Machinery Corp. (TSX VENTURE:HUA) ("Huaxing" or the "Company") (is
pleased to report that following its successful research and development of
Robotic Welding System for fabrication of corrugated web beams, the first set of
Robotic Welding System was manufactured and sold for RMB 14 million ($2.25
million) on December 27, 2011.


"This is an important milestone for the Company in its drive for product
diversification and revenue growth," said Xianhua Sun, Chairman of the Company,
"Huaxing is now a leading company in the research and development and
manufacturing of Robotic Welding System for fabrication of corrugated web beams.
The new product line will serve as the second growth engine for Huaxing in the
next five years."


The Robotic Welding System manufactured by Huaxing is specially designed for
fabrication of corrugated web beams. The product's target market is steel
structure fabrication companies. There are currently about 4,300 steel structure
fabrication companies in China.


The Company is also pleased to announce that Mr. Xiuxue Chai has been appointed
as CEO and director of the Company effective December 31, 2011. Mr. Chai
replaces Mr. Xiaodong Han, who has resigned as CEO due to personal reasons. Mr.
Han will remain as a director of the Company.


Mr. Chai most recently served as COO and Corporate Secretary of Shandong Huaxing
Mechanical, Inc. ("Shandong Huaxing") between November 2006 and December 2011.
Mr. Chai joined Shandong Huaxing in 1990 and served successively as Manager of
Accounting, Deputy General Manager, and General Manager and Chairman of Shandong
Huaxing's agricultural machinery division. 


About Huaxing Machinery Corp.

Huaxing is engaged in the business of machinery manufacturing. Through its
wholly owned subsidiary Gold Rhino Limited, Huaxing holds an 80% controlling
equity interest in Shandong Gold Rhino Huaxing Machinery Co., Ltd., the
operating entity that holds the manufacturing facilities located in Boxing
County, Shandong province, China. Its main products are stone cutting, polishing
and processing machinery and equipment for the building and construction
industry. Its six product series and 80 product models are sold in Chinese
domestic and international markets. Huaxing is also a leading company in the
manufacturing of Robotic Welding System for fabrication of corrugated web beams.



Forward-Looking Statements 

Certain information regarding Huaxing Machinery Corp. contains herein may
constitute forward-looking statements within the meaning of applicable
securities laws. Forward-looking statements may include estimates, plans,
expectations, opinions, forecasts, projections, guidance or other statements
that are not statements of fact. Although the Company believes that the
expectations reflected in such forward-looking statements are reasonable, it can
give no assurance that such expectations will prove to have been correct. The
Company cautions that actual performance will be affected by a number of
factors, many of which are beyond the Company's control, and that future events
and results may vary substantially from what the Company currently foresees. The
Company assumes no obligation to update such forward-looking statements, except
as required by applicable securities laws or exchange regulations. The Company's
forward-looking statements are expressly qualified in their entirety by this
cautionary statement. The Company seeks safe harbour.