Trading Statement

    China Biodiesel International Holding Co., Ltd. ("CBI" or the "Company")
                                         Trading Statement

The Company is today issuing an update on trading for the year ending 31 December 2008.

The  selling prices of fossil oil and vegetable oil have been negatively affected in recent months
by  volatile  markets, with falls of over 50% in the past three months linked to the international
financial crisis and the perceived growth prospects of the Chinese and global economies. This  has
led to a reduction in the average selling price of the Company's products.

The  fall  in the average selling price of the Company's products has had a direct impact  on  the
gross  margins  being  achieved  due to the Company's level of carried  inventory  and  previously
contracted  supplies of vegetable oil feedstock. Further, price volatility has led  to  a  reduced
level of customer orders as uncertainty around pricing continues.

Due  to  this  volatility and taking account of continuing market uncertainties, the  Company  has
started to substantially reduce its volumes of procurement and production. The board believes this
action  is  in the Company's best interests during this period of market volatility  in  order  to
reduce financial risk. Gross margins are expected to remain positive due to the Company's strategy
of focusing on higher margin B1 and B2 biodiesel used as chemical feedstock, overall the financial
effect  of this action is that the Board expects the operating business of the Company to be  loss
making  for  the  second  half of the financial year. Any profit on a group  level  for  the  full
financial year is anticipated to be linked to the receipt of government subsidies.

It  is  anticipated  that  when normal market conditions return, production  volumes  will  exceed
historical levels as commissioning of the Company's new Xiamen plant is completed, as reported  in
our  interim statement. Furthermore, as raw material prices have fallen sharply, the board expects
gross margins to increase during 2009 once current inventories are exhausted.

While  it  remains uncertain when market pricing may return to normal patterns, the  Company  will
keep shareholders updated on developments as and when appropriate.

For further information:

Gloria He, CFO: [phone]
James Wang, Company Secretary: [phone]

Allan Piper or Lei Jiang
First City (China) Ltd: [phone]/ [phone]

Tom Price or Bobbie Hilliam
Evolution Securities: [phone]




								
China Biodiesel International Holding Co LTD