Sancon Participated in “More Green for Shanghai” Campaign, Received e-Waste License from Chinese Government and Made Additional Investment in Environmental Services

Sancon Resources Recovery, Inc. (OTCBB: SRRY - News) (or “Sancon”), a rapidly growing environmental services and waste recycling company with operations in both China and Australia, announced today that Sancon Shanghai (“Sancon SH”), a majority owned subsidiary of Sancon, was invited to participate in the Shanghai government sponsored and organized campaign named “More Green for Shanghai” as the only commercial enterprise.

In order to meet the environmental initiatives set for 2010 Shanghai World Expo and promote the concept of "waste separation and conserve resources," Shanghai Municipal Afforestation Bureau launched the “More Green for Shanghai” campaign. Sancon is the only commercial enterprise that has been invited to participate in this campaign. Sancon will place specially made bins for the collection of waste paper from college campuses and office buildings. New copy paper will be given free of charge to the campaign-participating outlets to encourage and reward recycling. The waste paper collection is expected to reach over a thousand tons in 2010. We expect to generate profit from these activities from late 2009 to 2010.

Sancon is pleased to report that it has recently been awarded a license from the local Chinese Government to collect and process electronic waste such as computers, printers and copiers, as well as electric white goods. In order to further promote the expansion of domestic demand and improve energy efficiency of resource use, and also reduce environmental pollution, the Chinese government encourages the exchange of old electric products for new starting May 2009. The governmental budget this year will provide US$0.3 billion or RMB 2 billion of subsidies for upgrading the old electric products. Sancon is expected to benefit from such subsidies for its waste processing and recycling services.

Separately, Sancon has made an investment of 20% of the total equity interests in a new local Chinese enterprise named Shanghai ShengRong Environmental Protection Technology Co., Ltd. ShengRong is an early stage business development company focused on developing opportunities in the environmental services industry in China. It has entered into preliminary agreements with three world-renowned manufacturers of Printed Circuit Board (“PCB”) in China to collect and process leftover materials of PCB (“LMPCB”), which contains 18%-30% copper and other precious metals. The expected annual collection of LMPCB will be over 10,000 tons once in full operation and generating revenue reaching around $10 million USD each year. ShengRong will start trial production in fourth quarter 2009 and formal production in 2010.

“We are very excited to report these new developments to our shareholders,” Mr. Jack Chen, CEO of Sancon said. “Sancon is beginning to be noticed and recognized by the local government for our relentless effort to expand our environmental services and waste recycling operations. We believe these efforts will have a long lasting impact on our environment and society. We are still at an early stage of development of the growing environmental industry in China. We believe Sancon will benefit greatly from these investments and expansions.”

About Sancon Resources Recovery Inc

Sancon Resources Recovery, Inc. is an environmental service and waste management company that operates recycling facilities in China and Australia. Sancon specializes in the collection and recovery of industrial and commercial solid wastes such as plastic, paper, cardboard, and glass. The recycled materials are re-used by Sancon's manufacturing customers in China to make a wide variety of new products including outdoor furniture, construction materials, building materials, road surface, and various new products. Sancon's China operation is licensed by the Chinese government for waste management services, and is certified with ISO9001 and ISO14001 standards. For more information please visit: www.sanconinc.com

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