Siziwang Qi Wind farm Phase 1 Commences Power Production in Inner Mongolia

Hong Kong Energy (Holdings) Limited ("HKE" or the "Group", stock code: 987) is pleased to announce that Phase 1 of the wind farm project in Wulanhua, Siziwang Qi, Inner Mongolia ("the Project") has been successfully interconnected to the power grid and is on schedule for full commercial operation by the fourth quarter of 2010.

The total installed capacity of the wind power project is 49.5 megawatt (MW) and is wholly owned by HKE. The approved feed-in tariff is RMB0.51 per kilowatt hour and the Project is expected to generate approximately 115 million kilowatt hours of electricity annually.

The wind energy project has been successfully registered with the Clean Development Mechanism Executive Board of the United Nations Framework Convention on Climate Change, with the Carbon Dioxide emission reduction estimated at approximately 111,700 tons per year. The CER’s buyer is Carbon Resource Management Ltd, a UK-based company.

Dr. Bruce Yung, Managing Director of HKE, said, "the wind turbines project is an excellent start of the strategic development of HKE in Siziwang Qi, which is a designated Giga-watt wind farm base in Inner Mongolia. The Group has development rights to an area of approximately 980 sq. km. in the Siziwang Qi site, which could be developed into an approximately 1,000-MW wind farm in total. We will monetise this resource systematically and in alignment with the electricity transmission development plan to generate value for our shareholders.

With the successful completion of the asset injection from our parent company HKC (Holdings) Limited (stock code: 190), HKE is now a full-fledged alternative energy company primarily focused on wind power with 610 MW of gross capacity in generation. HKE is now generating power at the Danjinghe and Lunaobao wind farms in Hebei Province, the Changma wind farm in Gansu Province, the Mudanjiang wind farm in Heilongjiang and Phase 1 of the Siziwang Qi wind farm in Inner Mongolia. These, coupled with over 2,000MW of potential project wind farms in our development pipeline across the traditional ‘Three-North’ regions as well as Yunnan, Jiangsu, Shangdong and Guangdong, will make HKE one of the significant Pure Play wind power companies in China."