CHINA ENERGY LIMITED (Company Registration No. 200510060K) (Incorporated in the Republic of Singapore) RESULTS GUIDANCE FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2011

The Board of Directors of China Energy Limited (the "Group") wishes to announce that the Group will report a substantial increase in the net loss for the financial year ended 31 December 2011.
On 16 September 2011, the Company announced that the Group anticipates to report a net loss for the financial year ending 31 December 2011 due to the high cost of anthracite coal which made it not cost effective for the Group to produce methanol from anthracite coal. This accounted for the very low utilisation rate of the Group's in-house methanol plants which was expected to erode the gross profit contributions from the sale of Dimethyl Ether ("DME').
In view of the persistently high cost of anthracite coal, management has reviewed the carrying value of the Group's methanol assets and assessed that indications of impairment have arisen. As such, management will be submitting its assessment of the impairment on the Group's methanol assets ("Impairment") to the Board for its consideration.
If the Impairment assessment is accepted by the Board, the Impairment and related provisions will materially increase the Group's net loss for the financial year ended 31 December 2011. Further details will be provided in the Company's un-audited full year results announcement next week.

BY ORDER OF THE BOARD Cui Lianguo Chairman and Chief Executive Officer 26 February 2011