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SunSi Continues to Make Progress on Baokai Acquisition

SunSi Energies, Inc. (OTC-BB: SSIE), a development-stage company seeking to become a leading supplier of tricholosilane (TCS) to solar manufacturers like LDK Solar Co., Ltd. (NYSE: LDK) and China Sunergy Co., Ltd. (Nasdaq: CSUN), announced that it has completed all of its due diligence on the Zibo Baokai Commerce and Trade Co., Ltd. acquisition that it started in May 2010.

SunSi Energies, Inc., a development-stage company engaged in the acquisition of trichlorosilane (TCS) production facilities in China, today announced that it had completed all of its due diligence on the Zibo Baokai Commerce and Trade Co. Ltd. (Baokai) acquisition started in May 2010. The Company is now waiting for the issuance of the business license by Chinese local authorities to consummate the transaction. Baokai is located in Zibo city in the province of Shandong, China. Upon completion of this Baokai acquisition, SunSi Energies Hong Kong Limited will hold all of the distribution rights to the domestic and international markets on 100% of the TCS production from the ZBC plant, also located in Zibo, China. This transaction, which was expected to close by July 1st, 2010, has been delayed pending the issuance of a business license to operate. The Company expects to receive the license in September and begin generating revenues ranging from $1.0M to $1.5M per month.

As a result of the pending closing of the Baokai transaction, the company has discontinued its efforts to complete the JV for the purchase of the ZBC factory located in Zibo, China.

Michel G. Laporte, President of SunSi Energies Inc., stated, “Over the past year, we learned a great deal about the acquisition process and the TCS market in China. Although the Baokai transaction was delayed beyond our expectations, we are glad to finally move on. The latter transaction, giving us distribution rights over all of the 25,000 metric tons of ZBC’s output, coupled with the potential Wendeng acquisition (LOI recently announced), where we would raise the capacity to 60,000 metric tons, will highly benefit SunSi’s shareholders and the company. We believe that this efficient approach will allow for the maximization of our TCS production while minimizing our capital — it just makes sense!”

About SunSi Energies Inc. (“SunSi”)

SunSi’s goal is to acquire and develop a portfolio of high quality trichlorosilane producing facilities that are strategically located, and possess a potential for future growth and expansion. Through its wholly owned subsidiary SunSi Energies Hong Kong Ltd., SunSi has executed a definitive Distribution Agreement with Baokai that entitles SunSi to distribute and sell both within and outside China all of the TCS produced at the ZBC facility. This will enable SunSi to start earning revenues.

Relatively unknown, but essential to the solar industry TCS is a chemical primarily used in the production of polysilicon, which is an essential raw material in the production of solar cells for photovoltaic (PV) panels that convert sunlight to electricity for homes, businesses and farms. TCS is considered to be the first product in the solar PV value chain before polysilicon, and is also the principal source of ultrapure silicon in the semiconductor industry. It is believed that SunSi will become the first and only “pure play” public company in the world focusing exclusively on the production and sales of TCS.

SunSi Energies Inc. is traded on the NASDAQ OTC Bulletin Board under the ticker SSIE. For additional information, please visit the Company’s website: www.sunsienergies.com or call Michel G. Laporte at Tel: 646-205-0291.

Forward-looking Statements:

This news release contains forward-looking statements related to the future financial condition and results of SunSi’s operations. These statements are based on current expectations and estimates about the trichlorosilane markets and industry in which SunSi operates, management’s beliefs and assumptions regarding these markets, future growth prospects, the closing of the Baokai acquisition, the commencement of generating revenues in 2010, completion of other acquisition transactions and attaining an AMEX listing. These statements are subject to important risks and uncertainties, which are difficult to predict, and assumptions which may prove to be inaccurate. Some of the factors that could cause results or events to differ materially from current expectations include, but are not limited to: general economic conditions, market or business conditions; changing competitive environment; changing regulatory conditions or requirements; changing technology; raising sufficient capital and attaining the required number of shareholders to meet AMEX listing requirements, the price of TCS sold within China and outside of China, the level of production by the ZBC factory, and success in implementing productivity initiatives. Some of these factors are largely beyond the control of SunSi. Should any factor impact SunSi in an unexpected manner, or should assumptions underlying the forward-looking statements prove incorrect, the actual results or events may differ materially from the results or events predicted. All of the forward-looking statements made in this document are qualified by these cautionary statements, therefore, there can be no assurance that the results or developments anticipated by SunSi will be realized or, even if substantially realized, that they will have the expected consequences for SunSi. Readers should not place undue reliance on any forward-looking statements. Furthermore, SunSi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or any other occurrence.

CONTACT: 888-288-5215 · Please read our Full Disclaimer pertaining to this article.

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