ASIA BIO-CHEM GROUP CORP. ANNOUNCES CLOSING OF OVER-ALLOTMENT OPTION

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, Feb. 10 /CNW/ - Asia Bio-Chem Group Corp. (TSX: ABC) ("Asia Bio-Chem" or the "Company") is pleased to announce that it has closed the over-allotment option previously granted to the syndicate of underwriters led by Canaccord Genuity Corp. and including Dundee Securities Corporation, Jennings Capital Inc., Mackie Research Capital Corporation, Octagon Capital Corporation, Raymond James Ltd. and Northern Securities Inc. (collectively, the "Underwriters").  Pursuant to the over-allotment option, the Underwriters elected to purchase an additional 1,080,000 common shares of the Company at a price of $1.40 per share for additional gross proceeds of $1,512,000.

The over-allotment option was made available as part of the bought deal financing announced on January 12, 2011 (the "Financing").  In total, the Company has issued 8,280,000 common shares of the Company pursuant to this offering for total gross proceeds of $11,592,000 to the Company.

The net proceeds of the Financing will be used to fund the construction of a downstream production facility at the Company's existing Daqing plant. Asia Bio-Chem will use approximately 250,000 tonnes of cornstarch produced annually at its Daqing plant for further processing into downstream products including crystallized glucose and may include other products such as maltodextrin and/or sorbitol. The Company expects this project to be completed in the fourth quarter of 2011.

About Asia Bio-Chem Group Corp.

Asia Bio-Chem Group, through its wholly-owned subsidiaries in the People's Republic of China ("PRC"), is in the business of processing corn. From its plants in Liaoning and Heilongjiang Province, the Company has a total processing capacity of 900,000 tonnes of corn per year, which are processed into cornstarch, corn germ, gluten, and fiber for sale into the domestic Chinese market.

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. Forward looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements including, among others, use of proceeds of the Financing and those risk factors identified in the Company's final short-form prospectus prepared and filed with securities regulators in connection with the Financing. 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.

SOURCE Asia Bio-Chem Group Corp.

For further information:

For Corporate Information:

Robert Wilson
Executive Vice President
Asia Bio-Chem Group Corp.
Tel: 416-603-7500
Email: robert.wilson@asiabiochem.com
       Salvador Diaz
        Investor Relations
       The Equicom Group Inc.
       Tel: 416-815-0700 ext 242
       Email: sdiaz@equicomgroup.com 

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Asia Bio-Chem Group Corp.

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