Keyuan Petrochemicals (PINK:KEYP)

On September 28, 2010 in connection with a security purchase agreement between Keyuan Petrochemicals, Inc.  and the investors  closed a private placement of $20,250,000 from offering a total of 540,001 units at a purchase price of $37.5 per Unit, each consisting of,

(a) ten (10) shares of Series B convertible preferred stock of the Company.

(b) one and a half  three year Series C warrant (the “Series C Warrants”) to purchase one (1) share of Common Stock, at an exercise price of $4.50 per share, and

(c) one and a half three year Series D warrant (the “Series D Warrants,” together with the Series C Warrants collectively hereinafter referred to as “Warrants”) to purchase one  share of Common Stock, at an exercise price of $5.25 per share (the “Private Placement”) in reliance upon the exemption from securities registration afforded by Regulation S  as promulgated under the Securities Act of 1933.