Further re Consortium Acquisition

30 September 2016

China New Energy Limited

("CNE" or "the Company")

Further re. Consortium Acquisition

The Board of CNE (AIM:CNEL), the AIM quoted engineering and technology solutions provider to the bioenergy sector, provides an update in respect its announcement of 13 September 2016 regarding the consortium of investors ("Consortium") whose objective is to negotiate the acquisition of a specific project in Africa. 

The Company is pleased to advise that the Consortium, led by Sunbird Bioenergy Africa ("Sunbird Bioenergy"), has today announced that they have acquired a 75.1% equity interest in Addax Bioenergy Sierra Leone from the Addax and Oryx Group ("AOG"). Further, Sunbird Bioenergy has become the manager of the project. The Company's subsidiary Guangdong Zhongke Tianyuan New Energy Science and Technology ("ZKTY") supported the transaction as a part of its normal business activities with the expectation that it will have the right to bid for technology and service contracts should the acquisition be successful. Now that the acquisition has been completed, the Company retains a right to make a minority investment into the Consortium as well as to tender for technology and service contracts. The negotiations with the Consortium and Sunbird Bioenergy remain confidential and will continue over the coming months. 

There is no certainty that CNE will make an investment into the consortium or be successful in tendering for technology and service contracts. The Company will provide a further update to the market in due course.

For further information, please visit www.chinanewenergy.co.uk or contact: