Company Update

AUHUA CLEAN ENERGY PLC

("Auhua" or "the Group")

Auhua is first company to be awarded a five star certification for its split-unit solar water heaters under Shandong Solar Energy Industry Association's industry standards for solar water heaters

Auhua Clean Energy plc, the AIM quoted (AIM: ACE) environmental technology group based in the Shandong Province of China, is delighted to announce that its products have been awarded a five star certification for the quality of its split-unit solar water heaters, the highest grade obtainable under the Shandong Solar Energy Industry Association's industry standards for solar water heaters (the "Standards"). Auhua is the first company to have its products obtain the five star certification in Shandong province.

Information about the Standards

The Standards were officially launched in August 2012 to ensure quality control in the manufacture of split-unit solar water heaters and to regulate the industry. Importantly, the Standards are professional guidelines for industry players to adhere to and incorporate a grading system (three to five star) to rate the quality of a product. These measures will assist property developers and government agencies in being able to distinguish between products to purchase and promote.

The Standards are a collaborative effort by several bodies including the Shandong Solar Energy Industry Association, Shandong Product Quality Supervision and Inspection Research Institute, Shandong Provincial Department of Construction, Shandong Auhua New Energy Co. Ltd and Weihai Auhua New Energy Co. Ltd (both wholly owned subsidiaries of the Group) and Linuo Paradigma Co. Ltd and Shandong Redsun Co. Ltd, two other companies operating in the industry.

The five star certification has been awarded in close succession to two accolades the Group and its products received in September. The Group's brand was conferred by the Shandong government as one of "Shandong's famous brands" status. Auhua featured as one of two brands in the solar water heater category, out of a total of 466 brands awarded this year. In addition, the Group was informed by the National Development and Reform Commission that four of its models had achieved the China Energy Label, which enables consumers of Auhua's products to qualify for government subsidies, thereby strengthening its brand recognition and providing a commercial incentive for clients to choose Auhua products.

Raphael Tham, Chairman of Auhua said:

"Receiving the highest quality award for our products is a great achievement for Auhua. This recognition, combined with the other awards we have received in the last few months, are testament to the quality and innovation behind our successful products and our market leading position in the Shandong province and growing presence beyond."

Information about the solar thermal industry in the Shandong province

·; The Shandong province is the leader in China's solar thermal initiatives. It manufactures one third of China's solar water heaters and China uses 64.8% of the world's total capacity for solar heating (source: Global Status Report 2012).

·; In 2011, the solar industry in Shandong Province produced revenue of 98.2 billion yuan, a year-on-year growth of 18.3%; solar water heater production of 5.98 million units, an increase of 12.8% and a solar thermal application area of ​​22.73 million square meters.

·; Currently dominated by unibody systems purchased by end consumers, the Shandong government is shifting its focus to promote split-unit water heater systems to property developers. Consequently they have introduced regulations to increase demand such as enforcement of all buildings above 12 floors to have solar water heater systems (which a traditional unibody system will not be able to support) along with government subsidies to property developers.

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Notes to Editors:

Auhua Clean Energy is an environmental technology group based in the Shandong Province of Eastern China specialising in the development and application of green energy and energy efficient solar water heating solutions. In particular, the Group is focused on the manufacture and sale of split-unit solar water heating systems.

 Auhua Clean Energy operates through its wholly owned subsidiaries Shandong Auhua New Energy Co., Ltd and Weihua Auhua New Energy Co., Ltd., of which Auhua Holdings Pte Ltd is the intermediate holding company.