Biostar Nasdaq: BSPM

1. Biostar Nasdaq: BSPM Pharmaceuticals, Inc. Investor Presentation Aug 2014

2. 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. - 2

3. Introduction • Biostar Pharmaceuticals, Inc. (Nasdaq: BSPM) is a Chinese based developer, • manufacturer and marketer of pharmaceutical and health supplement products for a • variety 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 3

4. 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 - - - - Currently produces and sells 30 products and 1 medical device Innovative product pipeline with a wide variety of OTC and prescription drugs In 2011, acquired permits and approvals for 86 drugs and one health product In March 2013, acquired additional 13 drug approval license numbers • Xin Aoxing - leading market position, strong brand recognition throughout China - - Targets hepatitis B virus (HBV) which affects more than 10% of China’s population Strong recognition: OTC drug approved by China’s State Food and Drug Administration (SFDA) • Well positioned to take advantage of market opportunities such as: - - - China’s $124 billion healthcare reform plan New Rural Medical Care Cooperative Program Milestones: won a bid to supply hospitals In 1 province with Huangyangning Tablets, 2 provinces with Wenweishu Capsules, 8 provinces with Hyperthyroidism Capsules 4

5. 1 About Biostar 2 Financial Highlights 3 Growth Opportunities 5

6. Vertically Integrated Business Model Raw Material Lab, Processing, Warehouse and R&D Lab Drug Manufacturing R&D Lab Drug Manufacturing Offices in Xianyang Farm Raw materials and 82 acres of plantation Two world- class production Facilities： Xianyang & Weinan Covers retail outlets, hospitals, pharmaciesand Clinics Sales network covering 28 provinces Two R&D Laboratories 6

7. Self-farming: Reduces Costs Quality & 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 wereharvested gradually and the use of this is increasing In 2011 - Salvia miltiorrhiza is being used as rawmaterial From 2012-2014 - Additional herbs to harvest and be ready foruse Goal - increase production and fulfill all needs for raw materials or trade for other herbs: further reduce costs and control quality 7

8. Strong R&D Capabilities • Two R&D laboratories (Xianyang & Weinan) • 30 scientists & researchers • Average 10 years of experience • External R&D – Biostar sponsors and owns • the 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 8

9. World-class Production Facilities - Xianyang Xianyang facility •4Good Manufacturing Production (GMP) certifiedproduction 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 waiting for GMP certification: -Zushima production line -When fully launched, the company anticipatesto generateapproximately $30 million in revenues annually - -Health products line - When fully launched, the company anticipates to generateapproximately $10 million in revenues annually 9

10. World-class Production Facilities in Weinan Weinan facility • Acquired Shaanxi Weinan Huaren Pharmaceuticals In October 2011 • Five production lines • One high-tech laboratory • Currently, produces 20 drugs and one healthcare product • $3.0million in net sales for the first quarter of 2014 10

11. 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 platform 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. 11

12. New Partnership with Universities in Shaanxi •  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 12

13. A Diverse Portfolio of Products - Xianyang Category Name Treatment SFDA OTC Aoxing#1Oleanolic Acid Capsule Acute and chronic hepatitis B (“HBV”) Approved Ganwang Compound Influenza Approved Tianqi Dysmenorrhea Capsule Menstrual swelling and cramping Approved Prescription Danshen 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 Xin Aoxing Capsule GanWang Taohuasan Tianqi Dysmenorrhea Capsule Danshen Granule 13

14. A Diverse Portfolio of Products- Weinan Category Name Treatment SFDA OTC Zhitong TouGu Ointment Analgesic Approved Anfengwan Compound tablets Cold Approved Deafness Tongqiao Pills Deafness Approved Wenweishu Capsules Chronic gastritis Approved Chuzhang Zehaifu Tablets Cataract Approved Prescription Fosfomycin Calcium Capsules urinary tract infection Approved Huangyangning tablets CHD Approved Hyperthyroidism Capsules hyperthyroidism Approved Qianlietong Capsules prostatic hypertrophy Approved compound Danshen tablets CHD Approved Piracetam Tablets cerebrovascular disease Approved Erythromycin Estolate Granules antisepsis and anti-inflammation Approved Jingang Tablets enchance kidney Approved Aspirin Enteric-coated Tablets cerebrovascular disease Approved Liganlong Capsules chronic hepatitis Approved Longdan Xiegan Pills purge pathogenic fire, clear heat Approved Yanlixiao Capsules anti-inflammation Approved Danxiang Rhinitis Tablets Allergic rhinitis, sinusitis Approved Azithromycin Dispersible Tablets anti-inflammation Approved Huaren Changweitong Capsules enhance stomach function Approved Healthcare • • 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. 14

15. Competitive Advantages • 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 15

16. Flagship Product – New Aoxing • OTC drug for the treatment of HBV – – 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 16

17. Innovative Product Pipeline CategoryName Treatment Statute ZushimaAerosol pain suppressantProvided for the PRC military, Pending PLA approval OTC Prescription Drug Yinyangsuo Tablets Tonifying kidney National new drug, SFDA approved Working on the paperwork Oleanolic Acid Injection Liver cancer,Liver cirrhosisApplied for project approval Danshensu Yibingzhi Myocardial ischemiaIn the 12th 5-year plan database National class-one chemical drug 17

18. LargeSales Network Beijing Factoriesin Xianyang and Weinan in Shaanxi Province Weinan Xianyang Biostar sales networkcoverage • Across 28 provinces • Morethan 13,000 in Shaanxi rural area • Sales team with 400+ employees 18

19. Current Bid Distribution Heilongjiang Liaoning Beijing Hebei Huangyangning Tablets biddingzone Henan Shanghai Chongqing Wenweishu Capsules bidding zone • Bidding for medicines across 10 provinces • Selling in nearly30 hospitals • Planning on a hospital sales team with 200 members. Zhejiang Jiangxi Hyperthyroidism Capsules bidding zone Guangxi 19

20. 1 About Biostar 2 Financial Highlights 3 Growth Opportunities 20

21. Historical Financial Performance 21

22. Looking Forward In late July 2012, Xianyang SFDA gavethe“green light” of approval to restart sales of gel capsule products. Despite the temporary setback, business remains strong. • Continue introducingnew products. • Expand the market. • Broadenchannels of distribution. • Restart the sales of star product Xin Aoxing. Business Plan: Steps taken: Re-establishcustomer 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 22

23. BalanceSheet Highlights As of 31/12/2013 23

24. 1 About Biostar 2 Financial Highlights 3 Growth Opportunities 24

25. Other Growth Opportunities China’s medicine and pharmaceutical industry is one of the fastest growing industries in the Chinese economy (According to Data Monitor & IMS Health) • • The world’s third largest prescription drug • market • • Grown at over 16% annually (since 2000) • Profits ranked 5th highest in China Mentality of patients living in rural areas is changing • 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&A opportunities 25

26. China’s Healthcare Reform • China's $124 billion healthcare reform plan was launched in 2009. Two major guidelines of the plan are accessibility and affordability – – The first phase completed by the end of 2011 increased accessibility The second phase to be completed by 2020 aims to increase affordability by making medicines and medical services affordable to everyone. • Chinese government increased the number of medicines included in the National Reimbursement 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 encouragement to use “modern”medicine Provides patients suffering from severe diseases with additional financial assistance Shaanxi, Sichuan, Chongqing, Gansu, Henan, Hubei, and Hunan comprised 30% of the $5.6 billion spending – – 26

27. 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 27

28. Implementation of Development Strategies N Cina • 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 28

29. How to Contact Us Corporate website: www.biostarpharmaceuticals.com Contact: Ally Gong Tel: +86-29-3368-6638 Email: office@aoxing-group.com 29

30. Biostar Nasdaq: BSPM Pharmaceuticals, Inc. Investor Presentation Aug 2014