The document is an investor presentation for Biostar Pharmaceuticals, Inc. that outlines the company's business model, financial performance, growth opportunities, and priorities for 2011. Some key points: - Biostar has a vertically integrated business model that includes R&D, raw material production, manufacturing, and distribution. - The company has experienced strong revenue and profit growth in recent years and expects 20-25% revenue growth in 2011. - Biostar's flagship product is Xin Aoxing, an OTC drug for hepatitis B that generated over $53 million in sales in 2010. - Growth opportunities include increasing market share in China and other Asian countries for Xin Aoxing, as

1. Investor Presentation
January 2012
Biostar Pharmaceuticals, Inc.
Nasdaq: BSPM

2. Forward-Looking Statement
This presentation includes statements that are “forward-looking statements.” While
management has based any forward-looking statements contained in the
presentation on its current expectations, the information on which such expectations
were based may change. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of risks,
uncertainties, and other factors, many of which are outside of Biostar’s control, that
could cause actual results to materially differ from such statements. Such risks,
uncertainties, and other factors include, but are not necessarily limited to, those set
forth under the caption “Item 1A. Risk Factors” in Biostar’s most recent Form 10-K
filing, as and to the extent revised and updated to date in its subsequent Form 10-Q
filings. In addition, Biostar operates in a highly competitive and rapidly changing
environment, and new risks may arise. Accordingly, you should not place any reliance
on forward-looking statements as a prediction of actual results. Biostar disclaims any
intention to, and undertakes no obligation to, update or revise any forward-looking
statement. You are also urged to carefully review and consider the various
disclosures in Biostar’s most recent Annual Report on Form 10-K, as well as other
public filings with the SEC since the filing of Biostar’s Annual Report.
2

3. Introduction
Biostar Pharmaceuticals, Inc. (Nasdaq: BSPM) is a China based
developer, manufacturer and marketer of pharmaceutical and health
supplement products for a variety of diseases and conditions
• Strong R&D capabilities (two high-tech laboratories)
• Two world-class production facilities
• Diverse portfolio of products
• Extensive and efficient distribution network in 25 provinces
• 82 acres raw material & herbs plantation
3

4. 4
Investment Considerations
• Unique vertically integrated business model
- R&D, raw material plantation, processing, manufacturing, distribution and sales
• A history of strong profitable growth
- Revenue: 2007-2010 CAGR of 71%.
- Net Income: 2007 – 2010 CAGR of 62%
- On track to achieve its 2011 guidance: 20%-25% top line growth
• Large product portfolio and a strong pipeline of new products to drive growth
- Currently produces and sells 21 products and one medical device
- Innovative product pipeline of seven products (OTC and prescription drugs)
- Recently acquired permits and approvals for 86 drugs and one health product
• Xin Aoxing - leading market position, strong brand recognition throughout China
- Biostar’s main product, Xin Aoxing targets hepatitis B virus (HBV) which affects more than
10% of China’s population
- Strong recognition: OTC drug approved by China’s State Food and Drug Administration (SFDA)
- Over $53 million in sales in 2010: CAGR of 74% for the period 2007-2010
• Well positioned to take advantage of market opportunities such as:
- China’s $124 billion healthcare reform plan which promotes accessibility and affordability
- New Rural Medical Care Cooperative Program launched in 2008, as more patients seek cures
through medicines offered in hospitals and healthcare centers

5. 5
1 About Biostar
2 Financial Highlights
3 Growth Opportunities

6. Vertically Integrated Business Model
Lab, Processing, Warehouse and
Offices in Xianyang
Raw Material
Farm
Drug
Manufacturing
R&D Lab
6
Raw
material
plantation
82 acres
Two R&D
Laboratories
Two world-
class
production
facilities
Xianyang &
Weinan
Sales
network
covering 25
provinces
Covers retail
outlets,
hospitals
and
pharmacies

7. Self-farming: Reduces Costs & Controls Quality
• In 2008 acquired 82 acres in Qinling Mountains
• Planted and growing 13 herbs including:
– Salvia miltiorrhiza
– Pricklyash peel
– Eucommia bark
– Gingko
– Honeysuckle
– Shizandra berry
– Scutellaeria baicalensis georgi
– Milk veteh
– Radix codonopsitis
• To control quality and reduce cost of raw materials
– In 2010 - all raw materials were purchased from suppliers; planted herbs were not yet ready for
harvest and use yet
– In 2011 - Salvia miltiorrhiza is ready and being used as raw material
– In 2012 - Additional herbs to harvest and be ready for use
– Goal - increase production and fulfill all its needs for raw material: further reduce costs and
control quality
7

8. Strong R&D Capabilities
• Two R&D laboratories (Xianyang &
Weinan)
– 30 internal scientists & researchers
– Average 10 years of experience
• External R&D – Biostar sponsors
and owns the Intellectual Property
– Shaanxi College of Traditional Chinese
Medicine
– Shaanxi University of Science and
Technology
– Northwest University - College of Life
Science
8
Xianyang lab
Weinan lab

9. World-class Production Facilities - Xianyang
Xianyang facility
• Four Good Manufacturing Production
(GMP) certified production lines
producing ten products and one
medical device
• Has annual production capacity of
over $100 million
• Two new production lines are under
construction and waiting for GMP
certification:
– Zushima spray line - estimated to
generate approximately $10 million in
revenues annually
– Health products line - estimated to
generate approximately $20 million in
revenues annually
9

10. World-class Production Facilities - Weinan
Weinan facility
• In October 2011, acquired
Shaanxi Weinan Huaren
Pharmaceuticals
• Five production lines
• One high-tech laboratory
• Currently produces ten drugs
and one health product
• Additional products to be
added in 2012
10

11. 67.5%5.6%
6.7%
7.3%
4.5%
8.4%
XinAoxing
Taohuasan
GanWang
Tianqi
Danshen
HealthProducts total
A Diverse Portfolio of Products - Xianyang
Category Name Treatment SFDA
OTC
Xin Aoxing Oleanolic Acid Capsule Acute and chronic hepatitis B (“HBV”) Approved
Ganwang Compound Influenza Approved
Tianqi Dysmenorrhea Capsule Menstrual swelling and cramping Approved
Prescription
Danshen Granule Alleviates blood stasis and angina Approved
Taohuasan Pediatric Children respiratory tract infection Approved
Health Product
Yizi Capsules Aids fertility and fetal development Provincial level approved
Tangning Capsules Type II diabetes Provincial level approved
Shengjing Capsules Replenish kidney function Provincial level approved
Aoxing Ointment Psoriasis, vitiligo and dermatitis Provincial level approved
Aoxing Ganbaodai Hepatic and liver protection Provincial level approved
Medical Device Hernia Belt Hernia Provincial level approved
9M 2011 Revenue Breakdown
Xin Aoxing Capsule
11

12. A Diverse Portfolio of Products - Weinan
Category Name Treatment SFDA
OTC
Zhitong Tougu Plaster Cream Pain reliever Approved
Compound Paracetamol and
Amantadine Hydrochloride
Common cold Approved
Prescription
Fosfomycin Calcium Urinary tract infections Approved
Huangyangning Tablets Cardiovascular disease Approved
Jiakangling Capsule Hyperthyroidism Approved
Qianlietong Capsule Prostate disease Approved
Wenweishu Capsules Chronic gastritis Approved
Danshen Tablets Coronary heart disease Approved
Piracetam Tablets Cerebrovascular disease Approved
Erythromycin Estolate Coated Particles
Anti-bacterial anti-
inflammatory
Approved
Health Product Huaren Changweitong Capsule Gastrointestinal function Approved
12

13. Flagship Product – Xin Aoxing
• OTC drug for the treatment of HBV
– Approved by SFDA
– Recognized by China Consumer Association
• Targets a highly contagions disease
– More than 130 million people (10% of China’s
population) are infected with HBV
• Has high effectiveness rate
– 93% effectiveness rate in relieving HBV symptoms -
(as per People’s Hospital of Shaanxi Province)
• Nationally branded product and easily accessible
– Sold at local pharmacies since 1998
• Low cost/high margin
– Up to 80% gross margin product
• Highly affordable
– $970/year retail price, in most cases covered by
personal health insurance
Xin Aoxing Capsule
10
19
37
53
45
2007 2008 2009 2010 9M'11
Revenue Generated by Xin Aoxing ($ Million)
Solid Growth Over a 4-Year Period
13

14. Innovative Product Pipeline
Category Name Treatment Status
OTC
KunLingWan Irregular menses Finished clinical testing
Zushima Aerosol pain suppressant Pending SFDA approval
Prescription
Azithromycin Tympanitis, pharyngitis, bronchitis Pending SFDA final testing
Yinyangsuo Kidney disease Finished clinical testing
Zhixuening Uterine Bleeding Finished clinical testing
Xiao’aiping Tumors, esophagus cancer Finished clinical testing
Zhenbao Wan Thrombus & coronary heart disease Finished clinical testing
14

15. Large Distribution Network
- Extensive sales network across
China’s 25 provinces
- Over 11,800 rural medical sales
outlets in Shaanxi
- Sales team of over 300 members
15
SGOCO
HQ
Beijing
Beijing
Xianyang
Weinan
Factory locations in
Xianyang and Weinan –
Shaanxi province
Provinces – Biostar’s
sales network
coverage

16. Sales and Distribution Strategy
Distribution Strategy
Two-
Dimensional
Sales Strategy
Sales & Marketing Strategy
MASS Advertising:
Broaden
Awareness
RURAL Marketing:
Widen
Coverage
• Mass media advertising for
OTC drugs (eg. Xin Aoxing)
to increase brand
awareness
• Continue to invest in new
sales offices and sales-
force
• Build closer relationship
with pharmacies and
doctors
• Increase penetration in
25 existing provincial
markets
• Deepen penetration in
rural markets by opening
additional rural
distribution centers
• Invest in village clinics
and sales centers
16

17. 17
1 About Biostar
2 Financial Highlights
3 Growth Opportunities

18. Solid Financial Performance
16.0
34.0
53.0
80.0
51.9
66.0
2007 2008 2009 2010 9M'10 9M'11
Revenue ($ Million)
11
20
39
60
38.6
46.6
2007 2008 2009 2010 9M'10 9M'11
Gross Profit ($ Million)
4
7
11
17
11.3 11.3
2007 2008 2009 2010 9M'10 9M'11
Net Income ($ Million)
0.19 0.22
0.32
0.63
0.41 0.41
2007 2008 2009 2010 9M'10 9M'11
Earnings per Share ($ )
18

19. 73% 72%
83%
86% 85% 84%
2007 2008 2009 2010 9M'10 9M'11
Gross Margin
Cost and Gross Margin
5.2
14.1 14.3
20.1
13.3
19.4
2007 2008 2009 2010 9M'10 9M'11
Cost of Total Sales ($ Million)
67%
59%*
73% 75% 74% 71%
2007 2008 2009 2010 9M'10 9M'11
Gross Margin
19
2.8
5.3
6.3
7.7
5.3
7.1
2007 2008 2009 2010 9M'10 9M'11
Cost of Sales ($ Million)
Xin Aoxing Product All Biostar Products

20. Healthy Cash Inflow From Operation
1,310 2,093
5,674
12,841
11,848
12/31/2007 12/31/2008 12/31/2009 12/31/2010 9/30/2011
Net Cash Provided by Operating Activities ($ Thousand)
2,286 758*
8,578
13,211
24,007
12/31/2007 12/31/2008 12/31/2009 12/31/2010 9/30/2011
Cash& Cash Equivalents ($ Thousand)
20

21. Capital Structure as of 9/30/11
21
Common Stock: 100,000,000 shares authorized
• 28,196,627 shares of common stock issued
Warrants: total of 587,353 exercisable as follows:
• 500,000 warrants were issued in connection with the November 2, 2009 private placement
• Exercisable at $3 per share – expiry date November 1, 2014
• Redemption price - $0.01/share (if common stock price equals to or exceeds $4.5 on each
trading day for twenty (20) consecutive trading days ending on the trading day prior to
November 1, 2014.
• 55,000 warrants exercisable at $2 per share – expiry date May 31, 2013
• 32,353 warrants exercisable bat $2.74 per share – expiry date June 30, 2014
Stock Options: outstanding 1,086,667 options
• 846,667 options exercisable at $2.60 - expiry date October 21, 2014
• 100,000 options exercisable at $4.45 - expiry date December 29, 2013
• 50,000 options exercisable at $2.80 - expiry date October 26, 2015
• 70,000 options exercisable at $1.97 - expiry date April 6, 2016
• 20,000 options exercisable at $2.60 - expiry date April 6, 2014

22. 22
1 About Biostar
2 Financial Highlights
3 Growth Opportunities

23. Growth Strategy
Vertically integrated
model :
- Controls product
quality and cost /
increases business
efficiency
- Conducts market
research to
improve new
product
introductions &
market penetration
Increase raw
material plant
productivity to:
- Improves quality
control of raw
materials
- Reduces costs/
increases margins
- Plants herbs for
own use and resale
to third parties
Enhance R&D
capability to:
- Self develop
unique leading OTC
and prescription
products
- Owns intellectual
property
Invest in marketing
and sales force to:
- Further penetrate
existing markets
- Expand into new
markets
- Grow rural retail
distribution by
30%+ per year
Develop online sales
& educational portal
to:
- Focus on patient
education
- Encourage lifelong
usage of medical
products
Pursue additional
M&A opportunities
23

24. Market Opportunities – Xin Aoxing
Increase market penetration in China
(according to US CDC & World Health Organization)
• One third of 350 million HBV patients globally, reside in
China
• 10% of China’s 1.3 billion population is affected by HBV;
70% of patients live in rural areas, representing a target of
91 million patients
• Biostar 2010 sales in rural areas represented only 18% of
its total sales
Expand distribution in other Asian countries
(according to the Asian Liver Center at Stanford University)
• Asians have the highest rate of HBV infection of all ethnic
groups
Competitive / affordable pricing to fuel growth
High Hepatitis Prevalence in China
Ample Opportunities in Other Asian Countries
Manufacturer Type Treatment Cost Side Effects
Biostar OTC $81.2/box, 400 pills None
Gandezhi Prescription $110 / box, 360 pills Yes
24

25. 2011 Priorities
25
Grow top line
Increase rural penetration
Expand marketing efforts and sales force
• 20-25% top line growth in 2011
• 2010 revenue of $80 million: 9 month 2011 revenue of $66 million
• Expand sales and marketing team to 400 members
• Over 300 sales people as of October 2011
• Shaanxi province
• Targeting 13,000 rural medical sales outlets
• Reached more than 11,800 clinics at the end of October 2011
• Expand/deepen penetration and increase market share in all other provinces

26. 508
634
790
1,038
1,245
2006 2007 2008 2009 2010
China Pharmaceutical Market Size (RMB
Billion)
Other Market Opportunities
26
• Grown at over 16% annually (since 2000)
• Reached $184 billion in 2010
• To grow by another $50 billion in 2011
• To become the world’s third largest
prescription drug market in 2011
Mentality of patients living in rural areas is
changing
• 70% of China’s 1.3 billion people live in rural
areas
• Number of patients seeking cures through
“modern” medicines offered in hospitals and
healthcare centers is rapidly increasing
China’s medicine and pharmaceutical industry is one of the fastest growing industries of the
Chinese economy (according to Data Monitor & IMS Health)
Highly fragmented market and government backed consolidation initiatives provide M&A
opportunities

27. China’s Healthcare Reform
• China's $124 billion healthcare reform plan was launched in 2009. Two major
guidelines of the plan are accessibility and affordability
– The first phase to be completed by the end of 2011 aims to increase accessibility
– The second phase to be completed by 2020 aims to increase affordability by
making medicines and medical services affordable to everyone.
• Chinese government increased the number of medicines included in the National
Reimbursement Drug list (fully or partially reimbursable)
• Private health insurance has become more affordable
27
• $5.6 billion investment over 3 years has facilitated the
“New rural cooperative medical care program”
– Investment on patient education and encouragement
to use “modern” medicine
– Provides patients suffering form severe diseases with
additional financial assistance
– Shaanxi, Sichuan, Chongqing, Gansu, Henan, Hubei,
and Hunan comprised 30% of the $5.6 billion spending

28. Regulatory Compliances
• Quality Control Related
– Good Manufacturing Practice (“GMP”) Certification, regulated by the State Foods and Drugs
Administration (“SFDA”) – All Chinese pharmaceutical manufacturers must be GMP certified to produce
medicines of any kind. Biostar received its first GMP certification in 2006 and received another
verification in 2011 for a period of five years.
• New drug approval and licensing
– SFDA and China Traditional Medicine Administration Bureau regulate the process of new drug approval
and licensing in China. Redwood Capital estimates that only 15% of new-to-market drug applications got
approval by SFDA.
• Environmental regulations
– Subject to environmental laws and regulations stipulated by national and local environment protection
bureaus in China.
• Intellectual Property Rights and Patents
– Biostar has filed for copyright protection for the various names and brands of products.
28

29. Corporate website:
www.biostarpharmaceuticals.com
Contact:
Zack Pan, CFO
Biostar Pharmaceuticals
T: 405-996-8829
E: zpan@aoxing-group.com
Lena Cati
The Equity Group
T: 212 836-9611
E: lcati@equityny.com
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How to Contact Us

30. Investor Presentation
January 2012
Biostar Pharmaceuticals, Inc.
Nasdaq: BSPM