China Energy Expands Heating Supply Capacity

China Energy Corporation, a leading producer of coal, heat, and electricity in Inner Mongolia, China, is pleased to announce that it has successfully completed the construction of new facilities in an ongoing expansion of its heating supply capacity.

“The addition of 14 new heat transfer stations to our heat supply network has greatly increased the total geographic area that we are able to service and as a result, our potential client and revenue bases have increased as well,” said Mr. WenXiang Ding, President of China Energy. “It is this continuing commitment to make further investments in new technologies and infrastructure that has positioned the Company as a market leading supplier of coal, heat, and electricity within this rapidly growing and modernizing region of China.”

Inner Mongolia Zhunger County Heat Power Co. Ltd., a wholly owned subsidiary (pursuant to the Trust Agreement entered into on December 31, 2007) of the Company, operates a modern thermoelectric heating and power generation plant, along with 20 heat transfer stations in the XuanJiaWan District of Zhunger County, Inner Mongolia, China. Recently implemented enhancements at the Company’s thermoelectric heating and power generating plant and the expansion of the heat pumping station network have increased its annual heat production capacity by over 150 times from 736,000 megajoules to 110,400,000 megajoules.