New Research Centre and Laboratory

AUHUA CLEAN ENERGY PLC

("Auhua" or "the Company")

Establishment of Jinan Engineering and Technology Research Centre and Weihai Engineering Laboratory

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 wholly owned subsidiary, Shandong Auhua New Energy Co. Ltd has been officially authorised and appointed by Jinan Municipal Science and Technology Bureau to jointly set up an engineering and technology research centre with Jinan University for split-unit solar water heating systems.

In addition, another wholly owned subsidiary of the Group, Weihai Auhua New energy Co. Ltd, has been officially authorised and appointed by Weihai Municipal Development and Reform Commission to establish an engineering laboratory focused on combining the utilisation of solar with other energy sources.

Raphael Tham, Chairman of Auhua said:

"We are delighted that the China authorities have chosen to appoint Auhua in setting up the research centre and the laboratory demonstrating our strength in research and development in split-unit solar water heaters. It presents a very exciting opportunity to continue to innovate and develop pioneering technology solutions and maintain our leading position in the split-unit solar water heater industry."

 Information about the solar 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 metres.

·; 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.