China Education Resources Inc. Reports Q1 2011 Financial Results and Update

www.chinaeducationresources.com

VANCOUVER, July 5, 2011 /PRNewswire/ - China Education Resources, Inc. ("CER") (TSXV: CHN) (OTCQX: CHNUF), a leading technology provider of online learning, training courses and tools for teachers, students and education professionals in China, announced its financial results for the first quarter of 2011. All figures are expressed in U.S. dollars.

China Education Resources generated gross revenues of $2,192,958 in the first quarter of 2011. This is compared to gross revenue of $1,702,788 for the same period in 2010, representing a 28.8% increase in revenue. It recorded a net profit of $443,991 as compared to a net loss of $288,767 for the same period in 2010.

Q1 of 2011 financial highlights include:

Online teacher training revenue of $426,110 generated during the first quarter of 2011 as compared to $283,319 during the same period in 2010, representing a 50% increase in revenue of teacher training;

Text book sales revenue of $1,766,848 generated during the first quarter of 2011 as compared to $1,419,469 during the same period in 2010, representing a 24% increase in revenue of text book sales.

Since October 2010, China Education Resources finalized agreements to provide online education and training to teachers and education professionals in 14 provinces of China. The Company has implemented a four step growth and revenue strategy which is now being commercialized and expanding out national wide in China. The first step involves working with various levels of government to deliver the online teacher training programs. The second step integrates our products and services into the teachers' daily routine. This will allow teachers to interact and communicate with each other. The third step is to promote our school based platform to teachers and the fourth step is to engage the students with our school based platform which includes our collection of online tutoring courses, assessment tools and educational games. Our corporate revenue is generated from each of the steps of our growth plan.

"We are very pleased with the direction of our sales and operations. Proven by the revenue figure of the first quarter of 2011, our four-step growth plan is emerging as a rapid growth business model" said Chengfeng Zhou, CEO, China Education Resources. "We have started a three years training program for 6,600 teachers in Chefeng City of Inner Mongolia and other cities of Inner Mongolia will follow up with a similar program in 2011 compare with only an initial 1,200 teachers training program in Inner Mongolia in 2010; approximately 4,500 teachers training program for Chongqing City in 2011 compare with 1,000 teachers training program in 2010; the provinces of Gansu, Qinghai, Shaaxi, Guangxi and Anhui have confirmed to engage CER to provide online teacher training programs for these provinces in 2011 with more teachers to participate than 2010. We also expect to have more orders for the teacher training programs coming from other provinces and our revenue will continue to grow significantly in 2011."

In collaboration with China's education administrators and experts, China Education Resources has been helping to transform the curriculum of the world's largest educational system. Recognizing the need to address education reform changes, China Education Resources has created educational tools and curriculum for China's entire kindergarten through twelfth grade system. The Company is playing an integral part in transforming China's educational system through helping to convert the existing educational system from a memory-based learning system to a creative thinking and interactive approach. Presently, China Education Resources has over 1 million kindergarten through twelfth grade teachers registered through its Web portal. For more information, please visit www.chinaeducationresources.com or call (604) 331-2388.

Safe Harbor Statement

Certain statements made herein, and other statements relating to matters that are not historical facts and statements of our beliefs, intentions and expectations about developments, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information and statements are typically identified by words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "plan", "estimate", "will", "believe" and similar expressions suggesting future outcomes or statements regarding an outlook. All such forward-looking information and statements are based on certain assumptions and analysis made by China Education Resources, Inc.'s management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements. Important factors that could cause actual results to differ from these forward-looking statements include those described under the heading "Risks and Uncertainties" elsewhere in the Company's MD&A filed at www.SEDAR.com. The reader is cautioned not to place undue reliance on forward-looking information or statements. Except as required by law the Company does not assume the obligation to revise or update these forward looking statements after the date of this document or to revise them to reflect the occurrence of future, unanticipated events.

The TSX Venture Exchange has not reviewed, and does not accept, responsibility for the adequacy or accuracy of the contents of this press release.

SOURCE China Education Resources Inc.