NANCHONG, CHINA--(Marketwire - Jan 17, 2012) - American Nano Silicon Technologies, Inc. (OTCBB: ANNO) ("ANNO" or "the Company"), a leading manufacturer and distributor of consumer chemical products in China, today announced its financial results for fiscal year 2011 (FY 2011), which ended September 30, 2011.

FY 2011 Financial Highlights:

• Net income grew 179%, from a net loss of $4.3 million in FY 2010 to $3.4 million in FY 2011

Summarized FY 2011 Results:
	2011			2010				CHANGE
Revenue	$	16.1 million		$	23.4 million			-
Gross profit	$	3.8 million		$	5.6 million			-
Net Income	$	3.4 million		$	(4.3 million	)		+179	%
EPS (Diluted)*	$	0.11		$	(0.16	)		-

*Earnings per diluted share of $0.11 on 31 million shares. For FY 2010, the Company reported fully diluted losses per share of ($0.16) on 28 million shares.

"2011 marked a key chapter in our development," said Mr. Pu Fachun, Chief Executive Officer of ANNO. "We recently relocated to a new, larger manufacturing facility that will enable us to further diversify our product line. This past year, we focused on launching the product line for our flame retardant additive, the samples of which generated considerable interest at the 10th China International Exhibition on Housing Industry in September. Officially, we commenced limited production of our flame retardant additive on January 2, 2012. We are confident that we will be able to fully launch our flame retardant additive product line in 2012, and with the sales of this product, we believe that we will see improved financial results in the future."

FY 2011 Financial Results

Revenue

In FY 2011, ANNO had sales of $16.1 million compared to sales of $23.4 million in FY 2010, a decrease of $7.3 million. The decrease in sales is primarily attributable to the Company relocating to its new manufacturing facility. ANNO suspended production during the move, resulting in decreased sales in the third and fourth quarters of 2011.

Gross Profit

In FY 2011, ANNO had a gross profit of $3.8 million compared to a gross profit of $5.6 million in FY 2010, which is a decrease of $1.8 million. Cost of goods sold, which consists primarily of labor, overhead and product cost, was $12.3 million in FY 2011, representing a decrease of $5.4 million or approximately 31 percent when compared to FY 2010. ANNO's decrease in cost of goods sold in FY 2011 was approximately proportionate to the decrease in its revenues. ANNO's gross margin in FY 2011 remained relatively unchanged at 23 percent, compared to 24 percent in FY 2010.

Net Income

In FY 2011, ANNO's net income was $3.4 million as compared to a net loss of $4.3 million in FY 2010, an increase of $7.7 million or 179 percent. In FY 2010, the Company realized a net loss of $4.3 million primarily due to the $7.6 million in expenses ANNO recorded as a result of its private placement of derivative securities. The Company net income for FY 2011 increased as a result of the reduction in value of those derivative securities. This helped balance the impairment loss of $2.1 million that ANNO incurred as result of its relocation to its new manufacturing facility.

Recent Updates

On September 6, 2011, the Company acquired all minority interests in its subsidiaries by agreeing to issue 1,650,636 shares of common stock to the minority interest holders. Consequently, Nanchong Chunfei, Chunfei Chemicals, and Hedi Medicines became wholly owned subsidiaries of ANNO.

In December 2011, ANNO successfully relocated to its new facility, which contains equipment that enables the Company to further develop its product line. In particular, ANNO looks to build out the product line for its flame retardant additive, which is a proprietary aluminum hydroxide based powder that can be used as filler in polymer applications such as rubber, epoxies, polyester resin and polyvinyl chloride resin. The Company developed its flame retardant additive alongside Dr. Wang Yuzhong, Professor of Polymer Science and Engineering at Sichuan University and the Honorary President of China's Flame Retardant Society. In response to the Beijing Television Cultural Center fire of February 2009, China's government has called for flame retardant additives to be required in all commercial and residential construction projects, and ANNO is confident that it will be able to capitalize on this development with the launch of it flame retardant additive line.

Business Outlook

"We are very excited about our prospects in 2012," remarked Mr. Pu. "Our new flame retardant additive will be a welcome addition to our product line, and our new facilities and increased product diversification capacities will help us better meet the demands of our customers. Our goal is to establish our patented technology, Micro Nano Silicon, in a broad range of industries as many of our products based on this unique technology have shown to be more cost effective and environmentally friendly than competitors. While we look to provide additional industries with more effective, cleaner additives, we will also strive to build upon our understanding of nano technology and develop other practical, cost effective and eco friendly products."

About American Nano Silicon Technologies, Inc.

American Nano Silicon Technologies, Inc., through its 100%-owned subsidiary, Nanchong Chunfei Nano Silicon Technologies Co., Ltd., is engaged in the business of manufacturing and distributing Micro Nano Silicon™ based products. While the Company's Micro Nano Silicon based products are currently focused on the concrete and non-phosphate detergent industries, Micro Nano Silicon is adaptable to and widely used in many consumer and industrial products, including paint, petrochemical, plastics, rubber, paper, ceramics and water treatment materials.

Safe Harbor Statement

This release may contain certain "forward-looking statements" relating to the business of American Nano Silicon and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "estimates" or similar expressions. These forward-looking statements are based on assumptions about the Company's future, including, but are not limited to, continued demand for the Company's products, the Company's ability to sustain growth for the balance of the year, and its ability to generally meet all of its objectives. Such forward-looking statements and the underlying assumptions involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, and concentration in a small number of customers, raw material costs, market acceptance, future capital requirements, and competition in general as well as other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in the Company's filings with the SEC, in particular in Item 1A: "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended September 30, 2011. Except as required by law, the Company will not update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

AMERICAN NANO SILICON TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Expressed in US dollars)
				As of September 30,
				2011			2010
ASSETS
Current assets:
	Cash and cash equivalents			$	92,796		$	498,563
	Accounts receivable, net				-			574,956
	Inventory				111,339			193,633
	Advance to suppliers				-			6,911
	Deferred financing cost				-			65,000
	Prepaid expense				78,123			-
	Employee advances, net				2,006			7,478
		Total Current Assets			284,264			1,346,541
Property, plant and equipment, net					21,667,629			17,030,142
Other assets:
	Land use right, net				1,028,475			1,006,065
	Long term receivable - related party				-			337,759
		Total other assets			1,028,475			1,343,824
Total Assets				$	22,980,368		$	19,720,507
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Accounts payable			$	56,076		$	292,426
	Short term loan				3,233,528			597,804
	Taxes payable				97,358			470,321
	Construction security deposits				88,547			1,241,935
	Due to related parties				1,399,255			-
	Accrued expenses and other payables				503,756			343,983
		Total Current Liabilities			5,378,520			2,946,469
Long-term liabilities
	Long term Loan				547,485			1,970,556
	Due to related parties				1,781,609			780,946
	Warrant liabilities				1,545,098			5,097,483
		Total Long Term Liabilities			3,874,192			7,848,985
Total Liabilities					9,252,712			10,795,454
Commitment and Contingencies
Stockholders' Equity
	Common stock, $0.0001 par value, 200,000,000 shares authorized; 31,362,130 and 30,900,067 issued and outstanding as of September 30, 2011 and 2010, respectively				3,136			3,090
	Additional paid-in-capital				11,306,806			8,998,234
	Accumulated other comprehensive income				1,809,418			1,121,464
	Retained Earnings (Accumulated deficit)				608,296			(2,830,569	)
		Total American Nano Stockholders' Equity			13,727,656			7,292,219
Noncontrolling interest					-			1,632,834
		Total Equity			13,727,656			8,925,053
Total Liabilities and Stockholders' Equity				$	22,980,368		$	19,720,507

AMERICAN NANO SILICON TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in US dollars)
				For the Years Ended
				September 30,
				2011				2010
Revenues				$	16,078,164			$	23,403,930
Cost of Goods Sold					12,318,591				17,764,941
Gross Profit					3,759,573				5,638,989
Operating Expenses
	Research and development expense				296				82,934
	Selling, general and administrative				1,006,235				1,062,726
		Income from operations			2,753,042				4,493,329
Other Income and Expense
	Interest expense				(105,993	)			(32,766	)
	Loss on private placement				-				(4,527,138	)
	Change of fair value of derivative liabilities				3,552,385				(3,102,455	)
	Impairment loss and disposal loss from property and equipment				(2,149,611	)			(366,642	)
	Other income (expense)				(152,992	)			1,754
		Total other expense			1,143,789				(8,027,247	)
Income Before Income Taxes					3,896,831				(3,533,918	)
Provision for Income Taxes					520,580				747,214
Net Income (Loss)					3,376,251				(4,281,132	)
Net income (loss) attributable to the noncontrolling interest					(62,614	)			301,851
Net Income (Loss) attributable to American Nano Silicon Technologies, Inc					3,438,865				(4,582,983	)
Other comprehensive income (loss)
	Foreign currency translation adjustment				687,954				319,756
Comprehensive Income (Loss)				$	4,126,819			$	(4,263,227	)
Income (loss) per common share
		Basic		$	0.11			$	(0.16	)
		Diluted		$	0.11			$	(0.16	)
Weighted average number of common shares
		Basic			31,087,648				28,373,412
		Diluted			31,126,408				28,373,412

AMERICAN NANO SILICON TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in US dollars)
						For the year ended
						September 30
						2011					2010
Cash Flows From Operating Activities:
		Net Income (Loss)				$		3,376,251			$	(4,281,132	)
		Adjustments to reconcile net income (Loss) to net cash provided by operating activities:
			Bad debt expense					-				35,712
			Impairment loss and disposal loss from property and equipment					2,149,611				366,608
			Loss on private placement					-				4,527,138
			Change of fair value of derivative liabilities					(3,552,385	)			3,102,455
			Depreciation and amortization					682,110				709,341
			Stock based compensation expense					738,399				169,641
		Changes in operating assets and liabilities:
		(Increase) decrease in -
	Accounts receivable and other receivable							588,488				464,963
	Inventory							89,457				40,293
	Employee advances							5,699				(2,174	)
	Advances to suppliers							7,073				57,826
	Prepaid expense and other expenses							(13,125	)			-
	Related party receivables							-				168,958
		Increase (decrease) in -
			Accounts payable					(66,228	)			(142,146	)
			Construction security deposits					(1,184,690	)			(9,771	)
			Taxes payable					(457,211	)			45,440
			Accrued expenses and other payables					212,454				(150,148	)
					Cash provided by Operating Activities			2,575,903				5,103,004
Cash Flows From Investing Activities:
			Additions to property, plant, and equipment					(6,783,960	)			(6,678,194	)
			Proceeds from disposal of property, plant, and equipment					69,703				-
			Loan to related party					345,708				-
					Cash used in investing activities			(6,368,549	)			(6,678,194	)
Cash Flows From Financing Activities
			Proceeds from issuance of stock					-				1,789,975
			Proceeds from related party loans					1,708,411				282,580
			Repayment of loans					-				(226,224	)
			Proceeds from short term loans					1,323,747
			Proceeds from long term loans					342,649				-
					Cash provided by (used in) financing activities			3,374,807				1,846,331
Effect of exchange rate changes on cash and cash equivalents								12,072				62,546
Increase in cash and cash equivalents								(405,767	)			333,687
Cash and Cash Equivalents - Beginning of the year								498,563				164,876
Cash and Cash Equivalents - End of the year						$		92,796				498,563
SUPPLEMENTAL CASH FLOW INFORMATION:
During the period, cash was paid for the following:
			Interest expense			$		18,073				-
			Income taxes			$		786,711				724,724
Noncash investing activity:
				Unpaid property, plant and equipment additions, included in accounts payables				(178,316	)			223,685