Recent Events

On January 11, 2008, Jade Art Group announced the formation of a new wholly owned subsidiary, Jiangxi SheTai Jade Industrial Co., Ltd. (“JST”). JST now manages the sale and distribution of jade sourced from the SheTai Jade mine. This subsidiary is located in Yujiang Jiangxi, China, an area known as a major center for the processing and distribution of jade products.

On January 17, 2008, Jade Art Group signed an Exclusive Distribution Right Agreement with XiKai Mining enabling the Jade Art Group to acquire 90% of the raw jade produced from XiKai Mining’s SheTai Jade mine for a period of 50 years. The price has been set for the first five years at the equivalent of $285 per metric ton, and is subsequently subject to renegotiation every five years with adjustments not to exceed 10%. The SheTai raw jade has uses ranging from decorative commercial and residential construction material to high-end jewelry. In exchange for this exclusive right, Jade Art Group transferred its wholly-owned woodcarving business to XiKai Mining and agreed to pay XiKai Mining RMB 60 million (approximately $8.4 million) by March 2009. Jade Art Group has already paid approximately $6.7 million of this obligation.

On April 16, Richard E. Khaleel was appointed an independent member of the Board of Directors of the Jade Art Group. Mr. Khaleel is an experienced senior marketing executive, having served as the Chief Marketing Officer for the Bank of New York, the Chief Creative Marketing Officer at Alliance Bernstein, and the Vice President of Marketing at CNBC.

On April 28, Company announced that its Board of Directors had authorized a one-for-three reverse stock split of its outstanding common stock. The reverse split will reduce the number of outstanding shares from 239,940,000 shares to 79,980,000 shares. The Board set May 15, 2008 as the effective date for the reverse stock split. The marketplace effective date, on which the reverse stock split will be reflected in trading on the OTC Bulletin Board, will be determined by NASDAQ and is expected to be in late May or early June of 2008. The earnings per share results cited above are based on common shares outstanding before the reverse split.

Fiscal 2008 Outlook

Jade Art Group Inc. reaffirms guidance for its 2008 full-year financial results. This guidance reflects the results presently anticipated from continuing operations and does not include unusual or non-operating events. The following projections exclude results from discontinued operations, which were discussed in more detail above.

• Revenues are expected to be between $61 million and $65 million.

• Net income is expected to be between $37 million and $41 million.

• Diluted earnings per share are expected to be between $0.15 and $0.17.

(Note: The diluted earnings per share are based on the common shares outstanding before the pending reverse split. This is equivalent to between $0.46 and $0.51 per diluted share after the effective date of the reverse stock split.)

Mr. Song concluded, “We are quite excited about our results to date and the opportunity to be a leading seller and distributer of raw jade in China. The increasing popularity of SheTai Jade and our favorable long term agreement enabling us to obtain high quality SheTai jade in significant quantities suggests further opportunities to generate increasing value to our shareholders.”

· New Jade Distribution Initiative Provides Impressive Operating Results

· Transfer of Woodcarving Business Generates $55 Million Gain from Discontinued Operations

NEW YORK and JIANGXI, CHINA, May 12, 2008 - Jade Art Group Inc. (OTCBB: JADA) (the “Company”), a seller and distributor of raw jade sourced from the SheTai Jade mine in China, today announced its operating results for the quarter ending March 31, 2008. Jade Art began to distribute raw jade in this quarter; previously its operations consisted of the manufacturing and distribution of hand-carved and machine-carved wood products in China, which are now treated as discontinued operations.

Revenue from continuing operations for the quarter ending March 31, 2008 was $10.7 million. The first jade sales were made at the end of January 2008 and there were no comparable sales during 2007. Shipments of raw jade during the quarter reached approximately 3,385 metric tons, with an average sales price equivalent to approximately $3,150 per metric ton. Net income from continuing operations for the first quarter was $6.0 million, or $0.03 per diluted share. There were no comparable operations in the prior year quarter. Net income from discontinued operations in the first quarter of 2008 was $55.4 million, or $0.23 per diluted share, compared to net income of $1.9 million, or $0.01 per diluted share in the same period for 2007. The large increase in net income from discontinued operations is attributable to the gain recognized from the transfer of Jade Art Group’s woodcarving business, which as previously announced was transferred on February 20, 2008 to Wulatequianqi XiKai Mining Co., Ltd. (“XiKai Mining”) as part of the consideration for XiKai Mining’s entering into a 50 year Exclusive Distribution Rights Agreement that provides Jade Art with 90% of the raw jade produced by XiKai Mining’s SheTai jade mine.

Mr. Hua-Cai Song, CEO of Jade Art Group, stated, “We are pleased with the results of our first quarter operating as a seller and distributor of raw jade. The revenue from continuing operations of $10.7 million exceeded our expectations. Year to date, Jade Art Group has entered into six sales agreements for SheTai Jade, representing a total contractual sales value equivalent to approximately $42 million. We believe that this is a good indication of the market’s positive response to SheTai jade and supports our expectation of continuing solid revenue performance.”

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