China Golf Group, Inc. Signed a Framework Agreement with Yuhong District Administration in Shenyang to Develop Puhe Hot Spring Resort

SHANGHAI, April 21, 2011 /PRNewswire-Asia/ -- Headquartered in Shanghai, China Golf Group, Inc. ("China Golf", or the "Company", or "we"), a leading developer of premium golf courses, golf communities and improved land properties in China and the first of its kind publicly registered and reporting in the United States, announced that on April 8, 2011, we signed a Framework Agreement with Yuhong District Administration in Shenyang city, Liaoning province, to develop Puhe Hot Spring Resort.

The project will include: one resort with hot spring and accommodation facilities, one 27-hole private golf course and one 9-hole public golf course. The budget for this project is estimated at about US $165 million. The projected total revenue for the first four years will be US $227 million and the net income will be US $106 million. The definitive agreement will be signed within 90 days. We plan to start the project in 2011 and finish it in 2014.

Shenyang is the center city of northeast Asian Economic Circle and Ring Bohai Economic Circle as well as the largest core city and transportation hub in Northeast China. The population of Shenyang is about 7,204,000. The GDP of Shenyang in 2010 is US $30.56 billion and the GDP per capita is US $9,647 (Source: www.shenyang.gov.cn).

This project is in Yuhong district, Shenyang city, Liaoning Province, 40 km away from the airport, 15 km away from the city center, and 166 km away from Yingkou Harbor. To support this project, local government has promised to offer certain benefits by tax deducting and administration fee waiving to the company.

Mr. Maojun Lian, the District Chief of Yuhong, comments, "Puhe Hot Spring Resort will improve the local investment environment and increase employment rate. We are supportive to this project by all means."

"Getting full support from local government is necessary to develop golf course and community in China," said Tiger Bi, the CEO of China Golf Group. "We are delighted to get the opportunity to cooperate with local government directly, which will be a successful model for us to expand our golf chain and communities in the Northeast of China in the future."

About China Golf Group

Founded in 2006, China Golf Group ("China Golf" or the "Company") is a Shanghai headquartered, leading developer of premium golf courses, golf communities and improved land properties sold to developers of private residence villas and/or corporate clubs. In July 2010, China Golf merged with a Delaware public company and filed with the U.S. Securities and Exchange Commission ("SEC").  China Golf designs, constructs and develops premium golf courses and golf communities in the People's Republic of China ("PRC") through our PRC based operating companies. We offer a full spectrum of golf course development and management services, including design, engineering, construction, and maintenance of golf courses as well as consulting and management of golf projects. Since the formation of Beijing Shungao in 2006, we have completed over ten golf courses in China. With our influential strategic partners, we are expanding our business to an invest-design-build-mange model with an objective to become the top golf course management company and the largest golf course chain in China.

For more information on the Company, please visit http://www.chinagolfgroup.com/

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release contains certain statements that may include "forward- looking statements" within the meaning of federal securities laws. All statements, other than statements of historical facts, included herein are "forward-looking statements". Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the Company's ability to successfully expand its market presence and those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward- looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

SOURCE China Golf Group, Inc.