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Gushan Comments on Recent Trading Volume Increase

September 26, 2008

NEW YORK, Sept. 26 /PRNewswire-FirstCall/ — Gushan Environmental Energy Limited (“Gushan” or the “Company”; NYSE: GU), China’s largest producer of biodiesel as measured by annual production capacity, today commented on the recent increase in trading volume of its American Depositary Shares. Jianqiu Yu, the Chairman and Principal Executive Officer, stated, “We are aware of increased trading activity of our stock and felt it was important to communicate that we believe this may be attributed to inaccurate press reports about our Company. Our policy is to keep the market informed of material developments affecting our Company in a timely manner and we do not, as a general matter of policy, respond to individual press reports. We currently have no material developments to announce and there are no material changes to the underlying trends of our business operations as previously disclosed in our quarterly results and post results conference calls.”

About Gushan Environmental Energy Limited

Gushan Environmental Energy is China’s largest producer of biodiesel, as measured by annual production capacity. The company produces biodiesel, a renewable, clean-burning and biodegradable fuel, primarily from vegetable oil offal and used cooking oil, and by-products from biodiesel production, including glycerine, plant asphalt, erucic acid and erucic amide. Gushan sells biodiesel directly to users, such as marine vessel operators, as well as to petroleum wholesalers and individual retail gas stations. The company currently operates five production facilities in the Sichuan, Hebei, Fujian provinces and Beijing and Shanghai with a combined annual production capacity of 290,000 tons. The company targets to increase its annual production capacity to 400,000 tons by the end of 2008 with the expansion or addition of new production facilities in Beijing, Shanghai, Hunan and Chongqing.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by words such as “will,”"may,”"expect,”"anticipate,”"aim,”"intend,”"plan,”"believe,”"estimate,”"potential,”"continue,” and other similar statements. Statements other than statements of historical facts in this announcement are forward-looking statements, including but not limited to, our expectations regarding the expansion of our production capacities, our future business development, and our beliefs regarding our production output. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. Important risks and uncertainties that could cause the Company’s actual results to be materially different from expectations include but are not limited to the effect of any applicable government policy, law or regulation, of natural disasters, and of intensifying competition in the biodiesel and alternative energy industries, the availability of suitable raw materials to the Company, and the risks set forth in the Company’s filings with the U.S. Securities and Exchange Commission, including on Form F-1, as amended. The Company undertakes no obligation to update forward-looking statements, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

Gushan Environmental Energy Limited

CONTACT: US: Ann Mangold of Hill & Knowlton (New York), +1-212-885-0518,ann.mangold@hillandknowlton.com; or Asia: Hoi-ni Kong of Hill & Knowlton (HongKong), +852-2894-6323, hoini.kong@hillandknowlton.com.hk




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