China Clean Energy (PINK:CCGY)

On November 10, 2011, Fujian Zhongde Energy Co., Ltd., a wholly-owned subsidiary of China Clean Energy Inc. (the “Company”) entered into a Limited Liability Company Acquisition Agreement (the “Agreement”) with the owner of Handan Guanxin Technology Co., Ltd. (“Guanxin Technology”) to acquire 100% of the equity interest in Guanxin Technology. Guanxin Technology is a supplier of specialty chemical feedstock in Hebei Province, People’s Republic of China. The Company sought to acquire Guanxin Technology in order to mitigate its feedstock supply risk and have better control over the cost and quality of feedstock, which the Company uses in manufacturing biodiesel and specialty chemicals. The consideration for the transaction includes a cash payment of approximately $13.1 million (RMB 83 million). The transfer is to be completed within seven days from the date of the Agreement, during which time the Company is reviewing the books and records of Guanxin Technology. If the books and records of Guanxin Technology do not agree with the information provided, the Company reserves the right to nullify the Agreement within the seven day period.