INVESTOR PRESENTATION

April 2014

Certain statements in this presentation may be deemed “forward-looking statements" within the meaning of

federal securities laws. The matters discussed herein that are forward-looking statements are based on current

management expectations that involve risks and uncertainties that may result in such expectations not being

realized. Forward-looking statements involve risks and uncertainties that may cause actual results, performance or

financial condition to be materially different from the expectations of future results, performance or financial

condition expressed or implied in any forward-looking statements. Such risks include, but are not limited to,

competition in the veterinary bio-pharmaceutical industry, declines in demand for the Company’s products, rising

raw materials costs, changes to management or key personnel, risks associated with conducting business in China,

the Company’s ability to realize revenue opportunity at the Huxian Facility, as anticipated, or at the currently

being constructed Kunshan Facility, the Company’s ability to expand into markets outside of China and other risks

detailed in the Company’s filings with the Securities and Exchange Commission. Actual outcomes and results may

differ materially from what is expressed or forecasted in such forward-looking statements due to numerous

potential risks and uncertainties. Forward-looking statements made during this presentation speak only as of the

date on which they are made, and we do not undertake any obligation to update any forward-looking statement to

reflect events or circumstances after the date of this presentation. Because forward-looking statements are

subject to risks and uncertainties, we caution you not to place undue reliance on any forward-looking statements.

All written or oral forward-looking statements by the Company or persons acting on its behalf are qualified by

these cautionary statements. 2

Forward Looking Statements

Company Snapshot

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Skystar Bio-Pharmaceutical Company

Exchange/Ticker NASDAQ: SKBI

Stock Price (4-24-2014) $6.30

Shares Outstanding 7.6M

Market Cap $47.9M

P/E (LTM) 5.73

Revenues: FY2013 / Q4’13 $42.48M / $9.62M (unaudited)

EPS: FY2013 / Q4’13 $1.37 / $0.36 (unaudited)

Fiscal 2014 Revenue Guidance $46.0M - $50.0M

Overview• Headquartered in Xi’an, Shaanxi Province,China with over 300 employees• Engaged in:

• R&D• Manufacturing• Sales & Distribution of veterinarydrugs and animal health products in China

• Skystar is a proxy to:• China’s domestic consumption habits• Animal husbandry space

• Skystar is the only US-listed China animalhealth sector pure play

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Focus on Five Major Product Lines• Skystar services China’s animal husbandryindustry across the 29 farming provinces• Provides a complimentary product suitefor farmers consisting of:

• Veterinary vaccines• Veterinary medicines• Probiotics (microorganisms)• Animal feed additives and• Aquaculture vaccines (fish farming)

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Facilities• Skystar’s facilities and processes are ChinaGood Manufacturing Practice (“GMP”) certifiedby the Ministry of Agriculture (MOA) asconforming to strict government standards• 5 year renewable operating licenses• 100+ drugs and associated formularies

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Distribution and Customer Base

2,893 distribution agents

1,122 direct customers

360 franchised stores with exclusivity agreements

Distribution to all 29 farming provinces in China

(As of December, 2013)

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Government Policy Initiatives• China’s 12th Five Year Plan calls for anexplicit consolidation of animal farms to“scale” (further reducing the number ofbackyard farmers) with a target of 92 percentor more of poultry farms, 50 percent of pigfarms and 38 percent of dairy farms reachingthat target by 2015• The definition of “scale” for is 2,000+chickens; 50+ pigs. Various Chinese documentsrefer to farms with a 100 or more cows as“scale”

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Market Indicators• The market scale of China’s animal vaccineproduction reached CNY 10.22 billion/USD1.65 billion in 2013• Chicken consumption topped 13 milliontons in 2012• China’s meat consumption topped 71million tons in 2011 feeding 1.35 billioncitizens• Pork accounts for 3/4 of all meatconsumption with half of the world’s pigsconsumed in China• In 2000 - 74% of all pig farms had 50animals or less; in 2010, 50% of all pig farmswere considered medium sized with 3,000animals or less

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2014: Global Meat Trade

Source: USDA

*Source: Institute for Agriculture and Trade Policy

Market Indicators• China’s output fromaquaculture is the largest in theworld and accounts for about 67%of the world’s total production• The global market foraquaculture was valued at USD135.10 billion in 2012 and isexpected to reach USD 195.13billion in 2019, (TransparencyMarket Research)• The global production ofaquaculture was 66 million tons in2012 and is expected to grow at aCAGR of 2.3% from 2013 to 2019

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*Source: China’s fishery yearbook and FAO of the United Nations

International Standards• China’s MOA since 2004 has imposed strictGMP certification standards

• In 2011, the MOA imposed stricterstandards for manufacturing and inspectionof animal drugs and vaccine facilities

• Since 2004, out of the 2,400 drugmanufacturers only 1,300 have met the GMPstandard

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Products

Skystar’s complementary product lines reflects a business model thataddresses key segments of the animal farming industry and allows

the Company to capture more market share

• Veterinary vaccines• Active and inactive vaccines to

prevent sickness and disease inpoultry and livestock

• Veterinary medicines• Probiotic micro-organisms• Animal feed additives• Aquaculture products

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Revenues By Product Offering

FY2013 revenues increased 26.5% year over year

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VeterinaryMedicines

60%

VeterinaryVaccines

4%

Micro-Organisms

32%

Feed Additives4%

FY2013 Revenues - $42.5M

Production Facilities

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• The Company currently hasfour manufacturing facilities• Two of them are located inXi’an city, Shaanxi Province, China,of which one site is located in thetown of Sanqiao and the othersite is located in the town ofHuxian• The third manufacturing facilityis located in Songzi, Jingzhou City,Hubei Province, China and thefourth manufacturing facility islocated in Kunshan, JiangsuProvince, China

Facility Completion Status

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Description Approx. Size Status

The Sanqiao PlantMicro-organism facility 21,500 sq. ft. CompleteFeed additive facility 10,700 sq. ft. Complete

The Huxian PlantGMP standard veterinary medicine facility 45,200 sq. ft. CompleteQuality control, research and development, and administration building 36,600 sq. ft. CompleteWarehouse 10,400 sq. ft CompleteGMP standard bio-pharmaceutical facility with the production lines for activebacteria, inactivated vaccines, coccidiosis vaccines and aquaculture vaccines. 48,800 sq. ft. Complete

Animal laboratory complying with Animal Bio-safety Level 2 (ABSL-2)requirements 10,700 sq. ft. Complete

The Jingzhou PlantGMP standard veterinary medicine facility and warehouse 39,095 sq. ft. CompleteAdministration building, dorm and other 24,122 sq. ft. Complete

The Kunshan PlantMicro-organism manufacturing facility 35,654 sq. ft. In progressBoiler room 6,712 sq. ft. CompleteAdministration building 39,443 sq. ft. Complete

R&D Facility #1Xi’an R&D Facilities

20+ researchers responsible for developing newmedicines and vaccines to prepare and respondto epidemics, pandemics and diseases

Veterinary Medicine and Microorganism Labs

One Quality Inspection Center

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Shanghai R&D Facilities

Researchers from the Chinese Academy ofAgricultural Sciences

Responsible for evaluating and implementingmanufacturing and medical technology around

China and around the world

Responsible for evaluating and implementingshort-term and long-term planning for future

medications and vaccines

R&D Facility #2

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Research Affiliations• University research affiliations include:

• Shaanxi Microbial Research Institute• Jiangsu Microbial Research Institute• China Northwestern University• China Northwest Agriculture and Forestry University• Fourth Military Medical University

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R&D: Bringing Products to Market• 2 Issued and 2 Pending Vaccine Patents• Using both Traditional Chinese Medicine and modernWestern approaches (i.e. antibiotics) to develop treatmentssuch as kits used to treat Swine High-Fever Syndrome (Blue-Ear Disease)• Long-term goal to reduce dependence on pre-payment ofraw materials to maintain gross margin by introducing newhigh margin premium products to market in the near term

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Sales and Technical Support• Training and technical support attrade shows, fairs and exhibitions• Training for animal husbandryexperts are provided at the locallevel• Training seminars for local farmersin the usage of Skystar products

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Competitive Landscape• Largest competitors are State-owned Enterprises• Government is supportive of a free market in this niche• Majority of competitors only offer 1-2 product lines andbroad “shotgun” approach to treatments• High barriers of entry for international competitors

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Huxian Manufacturing Facility in X’ian• Received GMP approval in Dec 2013 to begin production of vaccines in our 151,700sq. ft. facility• This new facility represents a nearly 1,000% increase in manufacturing capacity ofour vaccine product line• Our Vaccine manufacturing, at full capacity, represents an additional revenueopportunity of $12M - $15M annually• Allows us to begin production of our new Aquaculture product line• Our Aquaculture manufacturing, at full capacity, represents an additional revenueopportunity of $8M - $15M annually• Marks our entrance into the fast growing and emerging Aquaculture health industry

Kunshan Manufacturing Facility• Complete build-out of Kunshan Micro Organism / Probiotics facility in Q4 2014• Our Kunshan Micro Organism / Probiotics manufacturing facility, at full capacity,represents an additional revenue opportunity of approx. $30M annually

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Our vaccine and micro-organism product lines are our highest margin product lineswith 80% and 70% gross margins, respectively, in 2013

Growth Strategy

Historical Annual Revenue

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$9.80

$15.10

$25.58

$33.80

$47.50

$52.80

$33.59

$42.48

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

2006 2007 2008 2009 2010 2011 2012 2013(millions)

$4.40

$8.34

$12.78

$17.30

$25.50$26.20

$18.49

$21.4944.7%

55.4%

49.9%

51.8%54.0%

50.0%

55.0%50.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

$-

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

2006 2007 2008 2009 2010 2011 2012 2013

Gross Profit Gross Profit Margin

Historical Gross Profit/Gross MarginsGross Profit ($millions)

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Historical Net Income/Net Profit MarginNet Income ($millions)

25*2006 - 2008 represents adjusted net income before non-cash charges for financing started in 2006 or the change in the fair value ofthe Company's warrants under EITF 07-5. / 2012 includes non-cash charges for stock grants issued as per the 2010 Stock IncentivePlan.

2.4 4.2

6.7

8.9

14.1 13.7

7.2

10.5

24.5%27.8%

26.2%

26.3%

29.7% 25.9%

21.4%

24.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2006 2007 2008 2009 2010 2011 2012 2013

Net Income Profit Margin

FY 2013 Revenues Gross Profit GM %

Veterinary Medications $ 25,515,844 $ 10,333,915 40%

Micro-organism $ 13,546,118 $ 9,426,397 70%

Feed Additives $ 1,790,981 $ 425,187 24%

Vaccines $ 1,630,773 $ 1,305,255 80%

Total $ 42,483,716 $ 21,490,754 51%

High Margin Products

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Selected Balance Sheet Data

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(USD) Dec, 31, 2013

CURRENT ASSETS:Cash 8,142,296

Total current assets 88,615,112PROPERTY, PLANT AND EQUIPMENT, NET 28,269,155CONSTRUCTION-IN-PROGRESS 9,284,947

Total assets 136,223,427

LIABILITIES AND SHAREHOLDERS' EQUITYCURRENT LIABILITIES: 24,965,881COMMITMENTS AND CONTINGENCIESSHAREHOLDERS' EQUITY

Total shareholders' equity 110,392,976Total liabilities and shareholders' equity 136,223,427

Weibing Lu, Chairman and CEO• Founded Xian Tianxing Bio-Pharmaceutical Co., Ltd. (our operating company in China) in 1997• BS from Wuhan University in 1985 and MBA from Xi'an Jiaotong University in 1999• Awarded Outstanding Entrepreneur of Xi'an Feed Industry in 2002• Appointed as a Director of Xi'an Institute of Feed Industry

Management

Bing Mei, Chief Financial Officer• Over 20 years of diverse international industry experience and successful track record in

CFO/Controller roles with a variety of Fortune 500 and middle market companies, previouslyCorporate CFO of Avineon, Inc., a multinational IT solutions provider.

• MBA from Duke University’s Fuqua School of Business where he was named a Fuqua Scholar.• Certified Public Accountant in the State of Maryland, Certified Management Accountant, Certified

Valuation Analyst and Chartered Global Management Accountant.

Scott Cramer, Director Corporate Development and U.S. Representative• Previously held Chairman, CEO and CFO of Cyber Group Corp., a public traded company• Founder and President of Cramer & Rauchegger, Inc., the firm is ranked amongst the top three

financial planning firms in Central Florida by the Orlando Business Journal and listed as one ofOrlando’s top wealth management firms by the National Association of Board Certified AdvisoryPractices

• Mr. Cramer’s expertise and opinions have been frequently sought after by various television, print,wire and online media outlets such as Bloomberg TV, CNBC, Fox Business, Smart Money, Dow JonesNewswire, Reuters, Bankrate.com, AOL DailyFinance and many others.

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Summary

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• Skystar distributes across all 29 agricultural provinces• Broad portfolio of animal health products and expandinginto the Aquaculture vaccine line.• Operation in an industry with high barriers to entry

• GMP Certification – Approximately 75 vaccinemanufacturing companies are GMP certified in Chinaand, at this time, the MOA is not certifying new facilities

• Increased vaccine manufacturing capacity with GMPcertified Huxian facility and build-out of Kunshan facility

Organization Chart

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