New Green Baron “Stock Alert”

SunSi Energies, Inc.

(BB: SSIE - $3.35 per share)

www.sunsienergies.com 

Common Shares Outstanding: 29.54

Market Cap: $98.5M

52-Week High: $3.60

52-Week Low: .86

Average Price: $3.1356 (50-day) $3.1579 (200-day)

SunSi Energies Represents the Only “Pure Play” Public Company in the World Focused on TCS Production, Essential in Most Solar Panels

 SSIE Projects Ongoing Profitability for Quarter Ended May 31 and Revenue in Range of $11 to $13 Million

Goldman Small Cap Research Initiates Coverage with Six-Month $6.00 Price Target and Forecasts Shares Could Reach $12 by Year-End 2012; “Best Play on the Solar Market”

June 16: Zacks Upgrades SunSi to Outperform

News Issued June 15 - SunSi Fulfills Wendeng Acquisition Payment Obligation - $2.7 Million in Redeemable Common Stock Converted to Equity 

The Green Baron Believes SSIE can Double Over the Near-Term; SSIE Positioned for Move to AMEX

Click to See SSIE Photo Album at:

SunSi Plant and Equipment

The Green Baron Report has selected SunSi Energies, Inc. (OTCQB: SSIE) as our newest Green Baron “Stock Alert”, and we strongly suggest members accumulate the stock as close to our profile price as possible.  Results compiled from the most recent trade prior to dissemination of this report to the subsequent high will be closely monitored at www.thegreenbaron.com and through email updates to members.  We have very aggressive price projections for SSIE and believe the stock has huge upside potential based on several positive fundamental factors.

TRADER’S NOTES:  SSIE is current in its SEC filings and trades on the OTCQB.  SSIE has been slowly building activity and price improvement over the past month.  It should be noted that SSIE has traded the vast majority of its activity in excess of $3.00 per share during the previous 52-weeks, and only dipped below this price when market maker support waned toward the end of 2010.  Technically, SSIE looks ready to continue its uptrend despite a choppy overall market.

SunSi Energies should be able to meet requirements to list of the AMEX soon as more shareholders are exposed to this strong growth story.  A listing on the AMEX would allow institutional investors the chance to participate, and would in effect likely benefit owners of stock at these prices. 

Through its operations in China, SunSi Energies, Inc. manufactures a specialty chemical known as Trichlorosilane (TCS).  TCS is a compound critical to the production of extremely pure polysilicone, from which solar photovoltaic (PV) cells and other products are made.  In fact, 70-75% of all solar panels in use today are made with PV cells.  It should be noted that TCS producers generate the highest profit margins of all players in the solar market food chain.

The Green Baron Report has identified the following primary reasons for accumulation of SSIE now:

• Growth of Solar Industry – On a global scale, energy consumption is on the rise.  The use of alternative energy sources is attracting huge investment dollars particularly following the nuclear power disaster in Japan.  In particular, China solar production is projected to grow five-fold by 2020.
• TCS is Essential to Solar – Trichlorosilane is the main raw material used in the production of polysilicon; absolutely essential to the solar photovoltaic (PV) industry. 
• Low Cost Producer of TCS – Many producers of polysilicon are outsourcing firms such as those in the SunSi family, due to the inherent lower cost. 
• SunSi Launches Investor Relations Campaign – On May 25, 2011, it was announced that SSIE would launch an investor relations campaign to increase investor awareness and understanding of SunSi operations.  Richard St-Julien, President of SunSi Energies Hong Kong Limited, stated, "Our campaign will be launched on a number of fronts including investor outreach programs, increased website visibility, and through greater exposure to the national media. We believe our stock price is undervalued.”
• Wendeng Expansion – Wendeng is noted for its high quality production facility and Tier 1, multi-billion dollar clientele.  Current capacity of Wendeng is 20,000 MT but will rise to 75,000 MT by year-end, following an expansion of the production facilities. 

• SunSi Fulfills Wendeng Acquisition Payment Obligation – Last week on June 15, it was announced that the 40% equity shareholder of the Wendeng facility opted to retain stock in SSIE in lieu of a cash payment.  This eliminates the need to raise $2.7 million and demonstrates a strong vote of confidence in the stock.

• Zacks Upgrade Issued Last Week – After it was announced that SunSi fulfilled its payment obligation for the Wendeng purchase, Zacks Research upgraded SSIE to Outperform.   This further confirms the positive nature of this development.  http://www.zacks.com/stock/news/...
• Revenue and Profit Growth – The research report and updates issued by Goldman Research on May 6, 2011 estimate that SSIE will generate $45 million in revenue for 2011 and start producing profitable results. In 2012, he projects SSIE will produce $140 million in revenues with net income of .46 per share. 
• Aggressive yet Reasonable Price Targets from Goldman Research - Based on these numbers, Goldman believes SSIE can go to $6 per share over the next six months and $12 next year.

The Green Baron Report believes members who accumulate SSIE below $4.25 will be thanking us.  Earnings and revenue numbers due out soon should further support a much higher stock price.  Goldman Research strongly supports the short-term target price of $6.00 per share, and the 2012 target of $12.00 is achievable when you take into account the Company’s expansion and growth plans.  Zacks Research also upgraded its investment opinion on SSIE to Outperform just last week, and provides further evidence that analysts have their eye on this Company.

About SunSi Energies, Inc.

SunSi Energies Inc. (OTCQB: SSIE) acquires and develops high quality TCS production facilities that are strategically located and possess a potential for future growth and expansion. U.S-based SunSi controls approximately 47,000 metric tons of TCS production in China, and is believed to be the first and only "pure play", TCS-centric public company in the world.

TCS is a chemical primarily used in the production of polysilicon, which is an essential raw material in the production of solar cells for PV panels that convert sunlight to electricity. TCS is considered to be the first product in the solar PV value chain before polysilicon, and is also the principal source of ultrapure silicon in the semiconductor industry.

Aims to Become World’s Largest TCS Producer

Through acquisition, internal growth and expansion of high quality, strategically located TCS production facilities, SunSi Energies seeks to become the world’s largest stand-alone TCS producer.  Following the recent execution of two transactions, SunSi controls over 15% of the TCS market in China that includes 25-30 companies. 

Mercom Capital Group, LLC, a global clean energy communications and consulting firm stated on May 2, 2011:

“We estimate China represented just shy of 3% of global demand in 2010 but more than 65% (and heading higher) of global solar production capacity. This makes China the world’s most important solar manufacturing country and we expect its importance to continue to grow...”

China offers a number of competitive advantages to the Company.  In addition to being the lowest cost producer of TCS, the Chinese government plans to spend $454 billion in alternative energy over the next 10 years, the majority of which is intended to affect a five-fold increase in Chinese solar production by 2020.  Plus, with inexpensive raw material, low labor costs, scalable facilities, a base of large clients, and an estimated 65% of global solar production capacity, China is the place to be for solar production.

Smart Acquisitions

Therefore, management early on elected to concentrate its initial efforts on China.  At the end of 2010, SunSi acquired 90% of Zibo Baokai Commerce and Trade Co. which owns exclusive worldwide distribution rights for TCS produced by Zibo Baoyun Chemical Plant with a current annual production capacity of 25,000 MT of TCS.

In March of 2011, SunSi acquired a 60% equity interest in TCS producer Wendeng He Xie Silicon Co. of Weihai City, China.  Wendeng is noted for its high quality production facility and Tier 1, multi-billion dollar clientele.  Current capacity of Wendeng is 20,000 MT but will rise to 75,000 MT by year-end, following an expansion of the production facilities. 

Trichlorosilane (TCS) - Introduction

Trichlorosilane (SiHCl₃) is a colorless liquid containing silicon, hydrogen, and chlorine. It is the key intermediate compound used to produce extremely pure polysilicon, from which computer chips and solar cells are made.

The key difference between solar grade and electronic grade polysilicon is the purity requirement. The purity requirement for electronic grade polysilicon is the highest and typically 99.999...% (in nine 13s) pure or more, while solar grade polysilicon tends to be at least 99.999...% (in six 9s) pure.

In 2000, the semiconductor industry consumed over 90% of the world's silicon supply while the solar industry consumed approximately 10%. In 2006, the solar industry consumed more than 50% of the world's available supply of polysilicon for the first time ever. This historic shift illustrates the growing size and importance of the solar industry.

Another important fact that is relatively unknown is the quantity of Trichlorosilane needed to produce polysilicon. The ratio is 6.25 to 1. In other words, 6.25 MT of Trichlorosilane is required to produce 1 MT of polysilicon!

The entry barrier for the solar business varies depending where on the PV value chain someone wishes to become involved. Becoming a Trichlorosilane or polysilicon producer will require special permitting, large capital investment, in addition to several years of planning and construction. It is much easier to become involved at the other end of the PV value chain (downstream) as it does not require a large amount of capital and the business can quickly be operational. Because of the above situation, companies involved in the Trichlorosilane and polysilicon production tend to achieve the highest profit, followed by solar cell manufacturers.

At SunSi, we believe that the best place to be involved on the PV value chain is exactly where we are - as a Trichlorosilane producer.

Making Trichlorosilane (TCS)

The process of producing Trichlorosilane begins by mining for relatively pure silicon dioxide (sand or quartz). The next step in the process is to separate the silicon from the oxygen which is achieved by heating sand grains containing silicon dioxide with carbon at very high temperature. At the end of this stage, the silicon or metallurgical grade silicon (MGS) is about 97% pure.

In order to reach a purity level suitable for semiconductor device and solar applications, the MGS goes through a purification process, which involves the reaction of MGS with hydrogen chloride. This reaction will finally form Trichlorosilane.

The distillation process, the final step in producing high quality Trichlorosilane, is all about bringing impurities below the part-per-billion (ppb) level. Liquefied Trichlorosilane at room temperature is purified by the distillation process until the impurity levels are acceptable.

The PV Value Chain

The solar PV value chain (diagram shown below) consists of a number of specific and distinct steps from the production of TCS to the end use in projects. On a normalized scale (100%), TCS production and polysilicon manufacturing tend to achieve the highest profit, followed by the ingots and wafers.

 

The buyers of Trichlorosilane, and other companies along the solar PV value chain, have enjoyed tremendous growth in the past few years, as China is trying to move away from coal power generation. As a result of this conversion, other governmental incentives and the 'go green' attitude of local governments, the trend of rising TCS demand is expected to maintain itself in the near future.

Outside of China, the solar energy industry growth has been even more dynamic. In fact, the global solar energy industry has grown by over 849% since 2000, from an installed capacity of 877 Mega Watts (MW) in 2000 to over 10,000 MW at the end of 2008. These figures represent a compounded annual growth rate (CAGR) of almost 40% for the same period.

Recent Key Press Releases

Thursday, June 16, 2011 - Goldman Research Issues Research Report on SunSi Energies Inc. (ACCESSWIRE via COMTEX) - Goldman Research has published a new research report on SunSi Energies Inc. The full report is available at: http://www.baystreet.ca/articles...

Wednesday, June 15, 2011 - SunSi Fulfills Wendeng Acquisition Payment Obligation - $2.7 Million in Redeemable Common Stock Converted to Equity - NEW YORK - (GLOBE NEWSWIRE) - SunSi Energies, Inc. ("SunSi") (OTCQB: SSIE), a specialty chemical provider to the solar industry, announced today that the 40% equity shareholder of the Company's Wendeng trichlorosilane (TCS) facility in Weihai City, China has waived his right of redemption and elected to retain 1,349,628 additional shares of SunSi common stock. The shareholder's action eliminates the requirement that SunSi raise $2.7 million to redeem the shareholder's common stock.

Under the terms of the March 18, 2011 Wendeng acquisition agreement, the 40% shareholder was issued 1,349,628 shares of the Company's redeemable common stock. These shares could have been redeemed by the 40% shareholder beginning September 18, 2011 which would have required SunSi to repurchase these shares for approximately $2.7 million dollars. On June 14, 2011, the shareholder waived his right of redemption and has elected to retain his SunSi shares.

As part of the Wendeng agreement, SunSi was also required to make a payment of $445,075 to the 40% shareholder of Wendeng, no later than June 18, 2011. SunSi made this payment well in advance of the due date, and has now completely fulfilled the financial requirements associated with this acquisition agreement.

David Natan, SunSi's Chief Executive Officer, stated, "We are delighted that our Wendeng partner has chosen to hold his shares and not redeem them. His actions send a tremendous vote of confidence, and now enables us to focus on raising expansion capital to grow the Wendeng facility from its current capacity of 22,000 metric tons to 75,000 metric tons."

Richard St-Julien, President and Chairman of Chinese Operations, stated, "We are fortunate to work with a Wendeng management team and shareholder that see our vision and is intent on doing everything possible to increase shareholder value. Our recently initiated investor relations campaign intended to gain visibility for SunSi, is now starting to bear fruit. We are confident in our business plan and the direction of our business."

Wednesday, June 8, 2011 - SunSi Featured in Investor's Business Daily Advertisement - SunSi Energies, Inc. ("SunSi") (OTCQB: SSIE) announced today that as part of its recently launched investor visibility campaign, the Company is featured in an advertisement in today's edition of the national financial publication, Investor's Business Daily.

The advertisement in today's edition, and a future ad to be posted next week, are part of the Company's overall efforts to engage in a comprehensive investor relations program in order to broaden the visibility and awareness of SunSi.

David Natan, SunSi's Chief Executive Officer stated. "We are pleased that we remain on track to achieve our production targets and financial goals. We are now turning our attention to raising awareness of the current positioning and future prospects of SunSi with a broader base. What better way than to leverage national publicity and exposure through one of the leading financial daily publications, Investor's Business Daily."

Richard St-Julien, President and Chairman of Chinese Operations, stated, "Investor's Business Daily has a great reputation and tremendous following among all stock investors. We will continue to implement varied yet targeted investor relations strategies and campaigns over the next few months to show our achievements and the opportunity at SunSi to the public."

Wednesday, May 25, 2011 – SunSi Launches Investor Relations Campaign - SunSi Energies, Inc. announced today it is launching an investor relations campaign to increase investor awareness and understanding of SunSi operations. Through its operations in mainland China, SunSi manufactures tricholorsilane (TCS), a critical intermediate compound used to produce extremely pure polysilicon. TCS is a critical component of computer chips and solar photovoltaic ("PV") cells and is an essential raw material used in the manufacturing of approximately 75% of all solar panels worldwide.

David Natan, Sunsi's Chief Executive Officer, stated, "We are strongly positioned to become a major supplier of TCS to the solar industry and believe we can generate significant profitability from current operations through the expansion of our Wendeng facility in Shandong Province. Once investors become aware of our competitive position, the size of TCS' potential market, the Company's prospects for future growth, and our current product sales to two clients each with over a billion dollars in annual revenue, we believe this knowledge will translate to increased trading volume and an increase in the price of our stock."

Richard St-Julien, President of SunSi Energies Hong Kong Limited, stated, "Our campaign will be launched on a number of fronts including investor outreach programs, increased website visibility, and through greater exposure to the national media. We believe our stock price is undervalued. On May 8th, Goldman Small Cap Research initiated coverage on SunSi with a $6.00 price target."

Wednesday, May 11, 2011 - SunSi Receives "Buy" Recommendation With a Six Month Price Target of $6.00 Per Share - SunSi Energies, Inc. announced today that Goldman Small Cap Research ("Goldman Research"), a stock market research firm focused on the small cap and micro cap sectors, had initiated coverage on SunSi on May 9, 2011; and that Goldman Research had put a six-month price target on SunSi stock at $6.00 per share, and forecast a $12.00 per share price target by the end of 2012.

You can download the complete report on the Goldman Research website at http://goldmanresearch.com/index... and see all research reports that have been written about SunSi at SunSi's website http://www.sunsienergies.com/sunsi/investors.htm.

David Natan, SunSi's Chief Executive Officer, stated, "We believe our stock price is significantly undervalued. The conclusions reached in this research report should help give us some additional visibility. We continue to execute our business plan, are now profitable, and expect to generate increasing profitability in future. We strongly believe that our business plan of acquiring trichlorosilane (TCS) production facilities and distribution rights, and growing those facilities both organically and through expansion, is the best way to capitalize on the most profitable segment of the solar value chain."

Tuesday, April 19, 2011 – SunSi Emerges From Development Stage Status and Records $4.6 Million in Revenue - Company Projects Ongoing Profitability and Provides Fourth Quarter Outlook - SunSi Energies, Inc. today announced that it had recorded revenue of approximately $4.6 million for its fiscal 2011 third quarter ended February 28, 2011. These revenues were generated from its Baokai trichlorosilane ("TCS") distribution subsidiary located in Zibo, China, which was acquired in December 2010.

TCS is a chemical compound primarily used in the production of polysilicon, an essential raw material used in the production of solar cells for photovoltaic ("PV") panels that convert sunlight to electricity for homes, businesses and farms, for example. Additionally, purified TCS is the principal source of ultrapure silicon in the semi-conductor industry. Approximately 75% of all solar panels in use worldwide contain TCS.

For its fiscal 2011 fourth quarter ending May 31, 2011, SunSi is projecting revenue to be in the range of $11.0 to $13.0 million. The projected increase in revenues in the fourth quarter over third quarter levels reflects the Company's March 7th 2011 acquisition of a 60% equity interest in He Xie Silicon Co. ("Wendeng"), a TCS facility located in Weihai City, China. As a result of the Wendeng acquisition, SunSi is projecting ongoing profitable operations on a consolidated basis; with earnings per share anticipated to be in the range of approximately $0.01 to $0.02 for the Company's fourth quarter ending May 31, 2011. Once the Company's fiscal year is completed, it will begin to formally initiate full guidance metrics for its fiscal year ending May 31, 2012.

David Natan, SunSi's Chief Executive Officer, stated, "I am very pleased to report that we are executing our business plan of acquiring profitable TCS operations in China; helping to grow them organically and consolidating the results of these subsidiaries with an efficiently run, and low cost U.S. public company. The result will be to generate earnings and increase the enterprise value of SunSi for our shareholders."

Richard St-Julien, President of SunSi Energies Hong Kong Limited, stated, "We remain encouraged by the progress we are making in the TCS market and the outlook for TCS in both China and the rest of the world. We will continue focusing our efforts on expanding the Wendeng facility from its current capacity of approximately 22,000 MT to 75,000 MT by the end of 2011; in order to capitalize on the expected increase in TCS demand which we are already seeing from our customers. Wendeng is currently operating at full capacity and generating excellent profits."

Green Baron Conclusion

SunSi Energies manufactures a critical intermediate compound used to create the majority of solar panels in use today.  Through its acquisition and expansion strategy, SSIE is already well on its way to becoming the largest TCS-only producer in China.  Anticipated growth in the industry over the foreseeable future lends analysts such as Goldman Research to determine that SSIE ought to trade much higher.

Over the past month with the support of several positive press releases, SSIE stock has started to establish a positive trend and seems to be attracting better volume.  The spread is currently very tight which certainly makes the stock more attractive to both investors and traders.  We believe a move above $4.00 per share will be seen over the next few weeks, and earnings results could drive the shares much higher than that over the near-term.

It would make perfect sense that SSIE apply for a listing on the AMEX.  An AMEX listing would invite accumulation by institutional investors and additional retail investors that currently are forbidden from investing in stocks listed on the BB or QB exchanges.  Again, we strongly urge members to grab some shares of SSIE now while it still trades near our profile price.

Contact:

SunSi Energies, Inc.

45 Main Street, Suite 309

Brooklyn, New York, 11201

Phone: (646)205-0291

info@sunsienergies.com

 

Investor Relations:

 

Acorn Management Partners, LLC

John R. Exley, III

Direct 678-368-4002