BiostarNasdaq: BSPM

Pharmaceuticals, Inc.

Investor PresentationAug 2014

Forward Looking Statement

-Statements contained in this presentation not relating to historical facts are forward-looking statements that are intended to fall

within the safe harbor rule under the Private Securities Litigation Reform Act of 1995. All forward-looking statements included

herein are based upon information available to the Company as of the date hereof, and the Company assumes no obligation

to update any such forward-looking statements. As a result, readers and potential investors should not place undue reliance

on these forward-looking statements. To the extent that any statements made here are not historical, these statements are

essentially forward-looking. Forward-looking statements can be identified by the use of words such as “expects,” “plans,” “will,”

“may,” “anticipates,” “believes,” “should,” “intends,” “estimates” and other words of similar meaning. These statements are

subject to risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially

from those expressed or implied by these forward-looking statements. Such risk factors include, without limitation, our ability to

properly execute our business model, to attract and retain management and operational personnel, potential volatility in future

earnings, fluctuations in the Company’s operating results, governmental decisions and regulation, and existing and future

competition that the Company is facing. These forward-looking statements are subject to known and unknown risks and

uncertainties that could cause actual events to differ from the forward-looking statements. More information about some of

these risks and uncertainties maybe found in the Company’s filings with the Securities and Exchange Commission under the

caption "Risk Factors“ in such filings. Information regarding market and industry statistics contained in this presentation is

included based on information available to us that we believe is accurate. It is generally based on industry and other

publications that are not produced for purposes of securities offerings or economic analysis. We have not reviewed or included

data from all sources and cannot assure investors of the accuracy or completeness of any such data included in this

presentation. Forecasts and other forward-looking information obtained from these sources are subject to the same

qualifications and the additional uncertainties accompanying any estimates of future market size, revenues and market

acceptance of products and services.

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Introduction

Biostar Pharmaceuticals, Inc. (Nasdaq: BSPM) is a Chinese based developer,manufacturer and marketer of pharmaceutical and health supplement products for avariety 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 28 provinces

•82 acres of raw material & herb plantations

•Future strategic development

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Investment Considerations• Unique vertically integrated business model

- R&D, raw material plantation, processing, manufacturing, distribution and sales

• Large product portfolio and a strong pipeline of new products to continue to drive growth

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Currently produces and sells 30 products and 1 medical deviceInnovative product pipeline with a wide variety of OTC and prescription drugsIn 2011, acquired permits and approvals for 86 drugs and one health productIn March 2013, acquired additional 13 drug approval license numbers

• Xin Aoxing - leading market position, strong brand recognition throughout China

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Targets hepatitis B virus (HBV) which affects more than 10% of China’s populationStrong recognition: OTC drug approved by China’s State Food and Drug Administration (SFDA)

• Well positioned to take advantage of market opportunities such as:

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China’s $124 billion healthcare reform planNew Rural Medical Care Cooperative ProgramMilestones: won a bid to supply hospitals In 1 province with Huangyangning Tablets, 2 provinces with Wenweishu Capsules, 8 provinces with Hyperthyroidism Capsules

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1 About Biostar2 Financial Highlights3 Growth Opportunities

R&D LabLab, Processing, Warehouse and DrugManufacturing

Raw Material

Vertically Integrated Business Model

Offices in XianyangFarm

Two world-class

productionFacilities ：

Xianyang & Weinan

Sales

network covering 28 province

s

Covers retailoutlets,

hospitals,pharmacies and Clinics

Rawmaterials and82 acres of plantation

Two R&DLaboratories

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R&D Lab Drug Manufacturing

Self-farming: Reduces CostsQuality

& Controls

In 2008 acquired 82 acres in Tsinling 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 harvested gradually and the use of this is increasingIn 2011 - Salvia miltiorrhiza is being used as raw material

From 2012-2014 - Additional herbs to harvest and be ready for useGoal - increase production and fulfill all needs for raw materials or trade for other herbs: furtherreduce costs and control quality

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Strong R&D Capabilities

Two R&D laboratories (Xianyang & Weinan)

•30 scientists & researchers

•Average 10 years of experience

External R&D – Biostar sponsors and ownsthe Intellectual Property

•Shaanxi College of Traditional Chinese Medicine

•Shaanxi University of Science and Technology

•Life Science College of Northwest University

•The Fourth Military Medical University

Xianyang lab

Weinan lab

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World-class Production Facilities - Xianyang

Xianyang facility

•4 Good Manufacturing Production (GMP)

certified production lines producing 10

products and 1 medical device

•When fully launched, the company anticipates annual production capacity over $100 million

•Two new production lines are under construction and waiti

ng for GMP certification:

-Zushima production line -When fully launched, the company anticipates to generate approximately $30 million in revenues annually-

-Health products line - When fully launched, the company anticipates to generate approximately $10 million in revenues annually

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Weinan facility

•Acquired Shaanxi Weinan Huaren Pharmaceuti

cals In October 2011

•Five production lines

•One high-tech laboratory

•Currently, produces 20 drugs and one healthcare product

•$3.0 million in net sales for the first quart

er of 2014

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World-class Production Facilities in Weinan

Significant Designation for Biostar’s China Subsidiaries

●In January 2014, Biostar's operating subsidiary, Shaanxi Aoxing Pharmaceutical Co.,Ltd, was designated as

the experimental base of the Liver Disease Health Education in Shaanxi province.

●Shaanxi Aoxing Pharmaceutical has been awarded numerous honors of Shaanxi Pharmaceutical and

Health Products Cooperation Association Director Unit.

●The company believes that the above-referenced awards and experimental status will provide a new platf

orm for product promotion, research and development of Biostar Hepatites B products.

●More efforts will be directed towards the search and development of both current and future products.

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New Partnership with Universities in Shaanxi

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• A new liver cancer drug was developed in March 2014 by the company and its partner—the Research Institute of Pharmaceuticals at Shaanxi University of Chinese Medicine.• Current cases of cancer on a global scale have been increasing drastically with China holding the larger percentage of the demographic According to the World Health Organization (WHO), in 2012 on a global basis, there were 14 million new cancer cases and 8.2 million deaths; China accounted for 3.07 million of the new cases and 2.2 million of the deaths. In 2012, China accounted for approximately 50% of the world’s liver cancer cases.

• Signed letter of intent in May 2014 with Northwest University to cooperate and develop a new

Myocardial ischemia medication

A Diverse Portfolio of Products - Xianyang

Xin Aoxing Capsule GanWang Taohuasan Tianqi Dysmenorrhea Capsule Danshen Granule

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Category Name Treatment SFDA

OTC

Aoxing #1 Oleanolic Acid Capsule Acute and chronic hepatitis B (“HBV”) Approved

Ganwang Compound Influenza Approved

Tianqi Dysmenorrhea Capsule Menstrual swelling and cramping Approved

PrescriptionDanshen 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

A Diverse Portfolio of Products- Weinan

•

•

Biostar has been the supplier of hospitals in 10 provinces, providing Huangyangning Tablets, Wenweishu Capsules and Hyperthyroidism Capsules since April 2012.The penetration of hospital prescription drug has a milestone significance to Biostar.

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OTC

Zhitong TouGu Ointment Analgesic ApprovedAnfengwan Compound tablets Cold ApprovedDeafness Tongqiao Pills Deafness ApprovedWenweishu Capsules Chronic gastritis ApprovedChuzhang Zehaifu Tablets Cataract Approved

Prescription

Fosfomycin Calcium Capsules urinary tract infection ApprovedHuangyangning tablets CHD ApprovedHyperthyroidism Capsules hyperthyroidism ApprovedQianlietong Capsules prostatic hypertrophy Approvedcompound Danshen tablets CHD ApprovedPiracetam Tablets cerebrovascular disease ApprovedErythromycin Estolate Granules antisepsis and anti-inflammation ApprovedJingang Tablets enchance kidney ApprovedAspirin Enteric-coated Tablets cerebrovascular disease ApprovedLiganlong Capsules chronic hepatitis ApprovedLongdan Xiegan Pills purge pathogenic fire, clear heat ApprovedYanlixiao Capsules anti-inflammation ApprovedDanxiang Rhinitis Tablets Allergic rhinitis, sinusitis ApprovedAzithromycin Dispersible Tablets anti-inflammation Approved

Healthcare Huaren Changweitong Capsules enhance stomach function Approved

Category Name Treatment SFDA

Four nationally approved medications ： Zhitong Tougu Plaster , Hyperthyroidism Capsules , Qianlietong Capsules ,

Yinyangsuo Tablets

Two exclusive nationally approved medicines:

Zhitong Tougu Plaster , Amoxicillin Enteric-coated Tablets

Awaiting approval for army licensed drugs, exclusive production:

Zushima Analgesic Spray

OTC medicine updated from the local standards to national standards:

Xin Aoxing Oleanolic Acid

Two national patents

Zhitong Tougu Plaster,Aoxing Ganbao

Competitive Advantages

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Flagship Product –New Aoxing• OTC drug for the treatment of HBV

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Approved by SFDA

Recognized by China Consumer Association

• Targets a highly contagious disease

–More than 130 million people (10% of China’s population) are infected with HBV

• Has high effectiveness rate

– High effectiveness rate in relieving HBV symptoms

per People's Hospital of Shaanxi Province)

- (as

• Nationally branded product and easily accessible

– Sold at local pharmacies since 1998

• Low cost/high margin

• Highly affordable

– In most cases covered by personal health insurance

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Innovative Product Pipeline

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Category Name Treatment Statute

OTCZushima Aerosol pain suppressant Provided for the PRC military,

Pending PLA approval

Prescription

Drug

Yinyangsuo Tablets Tonifying kidney National new drug, SFDA approved

Working on the paperwork

Oleanolic Acid Injection Liver cancer ,Liver cirrhosis Applied for project approval

Danshensu Yibingzhi Myocardial ischemia In the 12th 5-year plan database

National class-one chemical drug

Large Sales Network

Beijing

Factories in Xianyang and Weinan in Shaanxi Province

Weinan

Xianyang

Biostar sales network coverage•Across 28 provinces

•More than 13,000 in Shaanxi rural area •Sales team with 400+ employees

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Current Bid Distribution

Beijing

Huangyangning Tablets bidding zone

•Bidding for medicines across 10

provinces

•Selling in nearly 30 hospitals

•Planning on a hospital sales team

with 200 members.19

Wenweishu Capsules bidding zone

Hyperthyroidism Capsules bidding zone

Heilongjiang

Hebei

Henan

Zhejiang

Jiangxi

Chongqing

Guangxi

Shanghai

Liaoning

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1 About Biostar

2 Financial Highlights3 Growth Opportunities

Historical Financial Performance

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Looking Forward

BusinessPlan:

•Continue introducing new products.

•Expand the market.

•Broaden channels of distribution.

•Restart the sales of star product Xin Aoxing.

Steps taken: Re-establish customer confidence: Started aggressive advertising campaign in medical journals and health magazines.

New Business Model ： Established a B2C call center for direct sales to customers;

Established a hospital sales team consisting of approximate 200 sales representatives

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In late July 2012, Xianyang SFDA gave the“green light” of approval to restart sales of gel capsule products.

Despite the temporary setback, business remains strong.

Balance Sheet Highlights As of 31/12/2013

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Highlights 31/12/2013 31/12/2012

Cash and Cash Equivalents $80,072 $1,759,078

Total Current Assets $35,985,502 $41,974,131

Total Assets $67,564,444 $70,475,300

Total Current Liabilities $4,791,505 $12,702,552

Total Shareholders’ Equity $62,772,939 $57,772,748Total Liabilities and Shareholders’ Equity $67,564,444 $70,475,300

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1 About Biostar

2 Financial Highlights

3 Growth Opportunities

Other Growth Opportunities

China’s medicine and pharmaceutical industry is one of the fastest growing industries in theChinese economy (According to Data Monitor & IMS Health)

• The world’s third largest prescription drugmarket

• Grown at over 16% annually (since 2000)• Profits ranked 5th highest in China

Mentality of patients living in rural areas ischanging

• 70% of China’s 1.3 billion rural population.• Number of patients seeking cures through Modern medicines offered in hospitals and healthcare centers is rapidly increasing

Highly fragmented market and government backed consolidation initiatives provide M&Aopportunities

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China’s Healthcare Reform

• China's $124 billion healthcare reform plan was launched in 2009. Two majorguidelines of the plan are accessibility and affordability

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The first phase completed by the end of 2011 increased accessibilityThe second phase to be completed by 2020 aims to increase affordability bymaking medicines and medical services affordable to everyone.

• Chinese government increased the number of medicines included in the NationalReimbursement Drug list (fully or partially reimbursable)Private health insurance has become more affordable•

• $5.6 billion investment over 3 years has facilitated the“New rural cooperative medical care program”

– Investment on patient education and encouragementto use “modern”medicineProvides patients suffering from severe diseases withadditional financial assistanceShaanxi, Sichuan, Chongqing, Gansu, Henan, Hubei,and Hunan comprised 30% of the $5.6 billion spending

–

–

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Future Strategic Development Biostar’s Strategies:

•3 strategic moves: based on medication, strength, simultaneous development

•3 innovations: management innovation, operations innovation, technological

innovations

•4 accelerating processes: internet marketing, information modernization,

industrial diversification, service standardization

•1 strategic goal: build up a pharmaceutical mainstay company

N Cina

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Implementation of DevelopmentStrategies

•Seek to acquire smaller, similarly situated pharmaceutical companies and pharmaceutical distribution companies, utilized to achieve economies of scale and optimize the scale of production and sales

•Development of technological resources, supplying pipeline for 1-2 new products a year

•Every 2 years create a new leading product, with targeted sales over RMB 100 Million

•Diversified industrial development strategy pattern implementation of drug development, medicine cultivation, drug production, drug, pharmaceutical chain store sales

•Build a pharmaceutical company, create economies of scale, improve yield per share, return to investors

How to Contact Us

Corporate website:www.biostarpharmaceuticals.com

Contact:Ally GongTel: +86-29-3368-6638Email: office@aoxing-group.com

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BiostarNasdaq: BSPM

Pharmaceuticals, Inc.

Investor PresentationAug 2014