China Environmental (PINK:CNVP)

To date, we have financed our operations primarily through cash flows from operations and borrowings from banks. As of September 30, 2009, we had $2,103,946 in working capital, as compared to $1,370,047 as of September 30, 2008. Based on our current operating plan, we believe that our existing resources, including cash generated from operations as well as the bank loans, will be sufficient to meet our working capital requirement for our current operations. In order to fully implement our business plan and continue our growth, however, we will require additional capital either from our shareholders or from outside sources.