Mr. Zhiping Wang reports

ASIA BIO-CHEM GROUP CORP. ANNOUNCES THIRD QUARTER 2015 FINANCIAL RESULTS

Asia Bio-Chem Group Corp. has released its financial results for the three-month period ended Sept. 30, 2015.

Highlights:

• During the third quarter, the company had no production and sold only a small amount of fibre.
• Net loss for the third quarter was $13.4-million (16 cents per share) compared with a net loss of $8.6-million (10 cents per share) during the third quarter of 2014.
• The company's earnings before interest, taxes, depreciation and amortization were negative $2.6-million during the third quarter compared with negative $2.6-million during the third quarter of 2014.
• The company continues to finance its losses with loans from various sources. As at Sept. 30, 2015, total loans outstanding were $277.6-million.
• The company maintains unrestricted cash balance of $500,000 at Sept. 30, 2015.

"Our company continues to struggle with the weak Chinese economy and low product prices," stated Zhiping Wang, president and chief executive officer of Asia Bio-Chem. "We are continuing to work through the structure and necessary approvals for our transaction with Beidahuang."

During the third quarter, in reaction to weak product prices, the company discontinued production and had negligible sales from inventory. This is similar to the situation during the corresponding third quarter of 2014. The lack of production was due to the weak Chinese economy and soft demand for the company's products.

Operating expenses were $6.0-million during the quarter compared with $6.2-million during the corresponding period in 2014. Consequently, operating losses remained at $6.1-million compared with $6.2-million during the same period in 2014.

Other expenses increased during the quarter to $7.6-million compared with $3.4-million during the same quarter of 2014. This increase was due to higher average loan balances and higher borrowing costs from lenders.

              SUMMARY FINANCIAL STATEMENTS
  (in thousands of Canadian dollars except per-share
                  and percentage data)
                                               Three months ended
                                                    Sept. 30,
                                              2015           2014

Sales                                         $(16)            $0
Gross profit                                   (74)             0
Gross margin (% of sales)                      n/a            n/a
Operating expenses                           6,044          6,156
Income (loss) from operations               (6,118)        (6,156)
Other income (expense)                      (7,598)        (3,443)
Income taxes (recoveries)                     (353)        (1,035)
Net (loss)                                 (13,364)        (8,551)
EBITDA                                      (2,649)        (2,614)
Earnings per share:
Basic                                        (0.16)         (0.10)
Diluted                                      (0.16)         (0.10)

During the third quarter, the company refinanced or renewed its short-term borrowings, which totalled $277.6-million as at Sept. 30, 2015. Further, during the quarter, the company reduced its BA lines of credit, which resulted in the elimination of the restricted cash balance at Sept. 30, 2015.

We seek Safe Harbor.