Tanke Biosciences Corp (TNBI)

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We operate from a modern 34,000 square-meter manufacturing facility in the Huadu Economic District, in Guangdong province. As of
December 31, 2011, we had an aggregate production capacity of approximately 560 metric tons per week of feed additive, of which 350 metric
tons are organic trace minerals. We estimate that we are currently operating at a blended average across our product lines of approximately 53%
of our manufacturing capacity at our current facility. We expect our manufacturing output to increase in 2012 and beyond, and are constructing
a second facility, which is currently scheduled to be operational in the first quarter of 2013. This second facility is being built at the economic
and industrial development zone in Qingyuan where the Company has acquired a Land Use Agreement from the local government. This
particular area is designated specifically for the purpose of building manufacturing factories of this kind and we are only one of the new
occupants among many other similar manufacturers.