Yulong Signs Agreements Aimed at Allowing Sale of Its Recycled Waste Materials for Use in Major Road Paving Projects

PINGDINGSHAN, China

Yulong Eco-Materials Limited (NasdaqCM:YECO), an eco-friendly building products and construction waste recycling company, today said it has signed two cooperation agreements expected to speed the company’s ability to sell its recycled waste materials for use in major road and highway construction projects in Henan Province.

As per the agreements, signed with the Henan Communication Science and Technology Research Institute, Ltd., the parties expect to produce and submit to Henan Province authorities by November 30 a technical code governing the use of recycled construction waste materials in the production of roadbed — a road’s surface — in the Province. This code would include such parameters as the type and amount of recycled construction waste used in the roadbed, as well as the roadbed’s thickness, strength and other qualities affecting overall roadbed quality and safety.

Yulong will subsequently file this code with the National Bureau of Quality and Technical Supervision, after which the company will be able to sell its recycled construction waste to road contractors performing major projects such as highways, expressways, and other high quality road projects in Henan Province.

These sales could commence as early as February, said the company.

Yulong currently owns over one million cubic meters of recycled construction waste in Henan Province, which the company expects to sell at 15 to 20 RMB, or about $2.35 to $3.15, per cubic meter, thus generating revenue of 15 to 20 million RMB, or approximately $2.35 to $3.15 million, in calendar 2016.

Going forward, Yulong expects to sell about three million cubic meters of recycled waste materials per year, representing further potential annual revenue of about 45 to 60 million RMB, or about $7.1 to $9.5 million.

“Recycled waste sales represent a new revenue and profit center for us,” said chief executive Mr. Yulong Zhu. “We expect that, once this revenue stream begins, it will augment our total annual revenue by 15 to 20 percent.”

In addition, said the CEO, the use of recycled waste for road and highway construction would help Henan Province reduce the use of environmentally harmful components such as sand, stone and similar materials, whose manufacture causes significant greenhouse gas emissions.

About Yulong Eco-Materials

Yulong is a vertically integrated manufacturer of eco-friendly building products and a construction waste recycling company located in the city of Pingdingshan in Henan Province, China. The Company is currently Pingdingshan’s leading producer of fly-ash bricks and concrete as well as its exclusive provider of waste management services.

Forward-Looking Statements

This press release contains forward-looking statements, particularly as related to, among other things, the business plans of the Company, statements relating to goals, plans and projections regarding the Company’s financial position and business strategy. The words or phrases “plans,” “would be,” “will allow,” “intends to,” “may result,” “are expected to,” “will continue,” “anticipates,” “expects,” “estimate,” “project,” “indicate,” “could,” “potentially,” “should,” “believe,” “think,” “considers” or similar expressions are intended to identify “forward-looking statements.” These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of local, regional, and global economic conditions, the performance of management and our employees, our ability to obtain financing, competition, general economic conditions and other factors that are detailed in our periodic reports and on documents we file from time to time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151015005776/en/

Investor Relations Counsel:
The Equity Group Inc.
Lena Cati, 212-836-9611
Vice President
lcati@equityny.com
www.theequitygroup.com
or
Asia IR•PR
Jimmy Caplan, 512-329-9505
Managing Director
jimmy@asia-irpr.com
or
Media Relations:
Asia IR•PR
Rick Eisenberg, 212-496-6828
Managing Director
rick@asia-irpr.com