SAI Sunshine Agri Tech Inc

Sunshine Agri-Tech Inc. (TSX VENTURE:SAI) ("Sunshine" or the "Company") today
announced its annual financial results for the three month and the fifteen-month
period ending December 31, 2011. 


Annual Financial Results

Highlights



--  During the fifteen-month period ended December 31, 2011 the Company has
    successfully increased its sales by 24.1% compared with the same period
    ended December 31, 2010. This increase was a result of the improved
    volume and pricing of pig mix product which represented 43% of total
    volume during the period.  

--  The Company is pleased to announce that the Strategic Agreement with
    Jilin University announced on June 28, 2011 has been successful and
    allowed the company to increased manufacturing volumes with a focus on
    the pig mix product. During the fifteen month period ended December 31,
    2011 the Company achieved a 287% increase (in RMB terms) in its pig mix
    product over the corresponding period ended December 31, 2010.  

--  Aggressive pricing of its pig mix products coupled with higher corn
    costs resulted in a reduction in gross margin to 14.8% for the fifteen
    month period ended December 31, 2011 compared with 17.2% during the same
    period ending December 31, 2010.  

--  Higher operating expenses caused net loss to increase to $760,211 during
    the fifteen-month period ended December 31, 2011 compared with a loss of
    $175,751 during the corresponding period ending December 31, 2010. 

--  The Company maintains a strong balance sheet with $1.84 million in cash
    and no debt. 



"We have made good progress with our sales efforts into the pig marketplace thru
our pig mix product category and are comfortable that we can continue to grow
this business with our new capacity," stated Mr. Baojun Zhang, President and CEO
of Sunshine. "We continue to strengthen our position in the organic feed
industry thru research and development in the area of microbial feed. Our R&D
activities have been expanded thru our Strategic Agreement with Jilin
University."


SUMMARY FINANCIAL STATEMENTS

Driven by increases in volumes of pig mix, the Company's sales improved during
both the quarter and the fifteen-month period ended December 31, 2011 by 27.2%
and 24.1% respectively compared with the corresponding periods ending December
31, 2010. 




              ----------------------------- --------------------------------
                                              Fifteen-    Fifteen-          
                                                 Month       Month          
                Three-Month Period              Period      Period          
                Ended December 31                Ended       Ended          
                   (Unaudited)       Change  (Audited) (Unaudited)    Change
              ---------------------         ----------------------          
              12/31/2011 12/31/2010         12/31/2011  12/31/2010          
              ----------------------------- --------------------------------
                                                                            
Sales          1,576,085  1,239,227     27%  6,290,740   5,068,022       24%
Gross profit     252,126    229,815     10%    934,019     871,974        7%
Gross margin                                                                
 (% of Sales)      16.0%      18.5%    -14%      14.8%       17.2%      -14%
Operating                                                                   
 expenses        619,325    363,324     70%  1,870,958   1,374,243       36%
Loss from                                                                   
 operations    (367,199)  (133,509)    175%  (936,939)   (502,269)       87%
Other income    (22,296)    223,649   -110%    224,729     455,877      -51%
Income taxes    (19,181)     37,552   -151%     48,001     129,359      -63%
Net income                                                                  
 (loss)        (370,314)     52,588   -804%  (760,211)   (175,751)      333%
EBITDA         (358,154)    103,809   -445%  (627,330)    (28,632)     2091%
EBITDA before                                                               
 stock-based                                                                
 compensation  (178,204)    103,809   -272%  (447,380)     469,448     -195%
Earnings per                                                                
 share                                                                      
Basic             (0.01)          -             (0.01)        0.01          
Diluted                -          -                  -           -          
Weighted                                                                    
 average                                                                    
 number of                                                                  
 shares       72,006,250 71,997,880         72,004,565  71,997,880          
              ----------------------------- --------------------------------



Higher general and administrative expenses caused operating expenses to increase
during the fifteen month and three month periods ended December 31, 2011
respectively. As a result, earnings before interest, tax, depreciation and
amortization (EBITDA) were lower during both reported periods. 


After adjusting for, non-cash, stock based compensation expense, EBITDA declined
to negative $627,330 for the fifteen-month period ended December 31, 2011 from a
negative of $28,632 during the same period ending December 31, 2010. 


Net loss for the fifteen-month period ended December 31, 2011 was $760,211
($0.01 per share) compared with a net loss of $175,751 ($0.01 per share) during
the corresponding period of 2010.


As at December 31, 2011 the Company maintained positive working capital of $2.2
million with a cash position of $1.84 million and no bank debt. 


About Sunshine Agri-Tech Inc.:

Sunshine Agri-Tech Inc. (TSX VENTURE:SAI) is a public company listed on the TSX
Venture exchange. The Company is engaged in the research, development,
production and sales of bio-feed, microbial feed additives and related products
that aim to improve the health and performance of animals. The Company's line of
products include: (a) bio-feed; and, (b) microbial feed additives. The Company
currently sells its products throughout China. The Company is based in the city
of Dalian, Liaoning province in the Peoples Republic of China.


This news release contains certain statements that may be deemed "forward
looking statements". Forward looking statements are statements that are not
historical facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur. Although the Company believes
the expectations expressed in such forward looking statements are based on
reasonable assumptions, such statements are not guarantees of future performance
and actual results may differ materially from those in forward looking
statements. Forward looking statements are based on the beliefs, estimates and
opinions of the Company's management on the date the statements are made. The
Company undertakes no obligation to update these forward looking statements,
except as required by law, in the event that management's beliefs, estimates or
opinions, or other factors, should change.

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