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Exhibit 99.1

            China Direct, Inc. Launches CDI Pan Magnesium Subsidiary
           Magnesium Production Capacity will Increase to 18,000 Tons

BOCA RATON, FL - October 1, 2007 - (PR Newswire) - China Direct, Inc. (AMEX:
CDS), a U.S. company that owns controlling stakes in a diversified portfolio of
Chinese entities and assists Chinese businesses in accessing the U.S. capital
markets, announced today that it has launched operations of CDI Pan Magnesium
Company, Limited ("CDI Pan Magnesium"), a joint venture subsidiary 51% owned by
China Direct.

China Direct will contribute 51 million RMB (approximately $6.75 million) as
registered capital which will be staged over the course of 2 years. The first
installment of $2.035 million will be provided by China Direct on October 1,
2007, which is the effective date for the joint venture's operations as a
subsidiary of China Direct. CDI Pan Magnesium has registered capital of 100
million RMB (approximately $13.23 million).

CDI Pan Magnesium currently has a production capacity of approximately 6,000
tons of magnesium per year and is completing the construction of 2 new
facilities which will add an additional 12,000 tons annually in 2008. Management
believes these facilities will be completed in the first quarter of 2008.
Additionally, management has received assurances from its joint venture partner
in CDI Pan Magnesium, Shanxi Jinyang Coal and Coke Group Company, Limited, that
the waste gas from Shanxi Jinyang's coke facility will be in place by the end of
October to power production of the completed 18,000 ton magnesium manufacturing
facilities.

Magnesium prices have continued to hold at high levels. Based on the current
price of approximately $2,800 per ton, the new production capacity, when fully
operational, will be able to generate approximately $50 million in annualized
sales with an anticipated net profit margin of 15% to 20% for the fiscal year
2008.

Dr. James Wang, CEO of China Direct, commented, "China Direct's capital infusion
will enable the new joint venture's facilities to use the latest production
technologies that offer the most energy efficient, cost effective, and
environmentally friendly process for magnesium production. The completion of
these new magnesium facilities will elevate China Direct to be one of the top
magnesium producers in the world. We are committed to our current plan of
reaching manufacturing capacity of 40,000 to 50,000 tons of pure magnesium while
distributing an additional 40,000 to 50,000 tons of magnesium in 2008. Our
management team expects global demand for magnesium to increase substantially
for the foreseeable future and we will continue to grow our magnesium operations
to be a leading worldwide force in this industry."

About China Direct, Inc.

China Direct, Inc. (AMEX: CDS) is a U.S based company doing business in China
through two divisions. Our management division acquires controlling stakes in
Chinese companies, then provides investment capital and active management to
enable these companies to thrive as our subsidiaries in their respective
industries. Our consulting division assists other companies in China and the
U.S. in establishing and maintaining a presence in the U.S. capital markets. As
a direct link to China, China Direct serves as a vehicle allowing investors to
directly participate in the rapid growth of the Chinese economy in a diversified
and balanced manner. For more information about China Direct, please visit
http://www.cdii.net.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based on current expectations or beliefs, including, but not
limited to, statements concerning the Company's operations, financial
performance and, condition. For this purpose, statements that are not statements
of historical fact may be deemed to be forward-looking statements. The Company
cautions that these statements by their nature involve risks and uncertainties,
and actual results may differ materially depending on a variety of important
factors, including, but not limited to, the impact of competitive products,
pricing and new technology; changes in consumer preferences and tastes; and
effectiveness of marketing; changes in laws and regulations; fluctuations in
costs of production, and other factors as those discussed in the Company's
reports filed with the Securities and Exchange Commission from time to time. In
addition, the company disclaims any obligation to update any forward-looking
statements to reflect events or circumstances after the date hereof.

Contact:

Investor Relations,

HC International, Inc.
Alan Sheinwald, Partner
Tel: (914) 669-0222
Email: Alan.Sheinwald@HCinternational.net

Company,

China Direct, Inc.
Richard Galterio, Executive Vice President
Tel: 1-877-China-57
Email: Richard@cdii.net