China Energy Corp. Anticipates No Material Impact from Chinese Government’s Recent Announcement on Thermal Coal Contract Price Hikes

July 7, 2010

HOHHOT CITY, China, July 7 /PRNewswire-Asia-FirstCall/ — China Energy
Corporation (OTC Bulletin Board: CHGY), (“China Energy” or “the Company”), a
leading Inner Mongolia producer and processor of raw coal for domestic heating,
electrical generation, and coking purposes for steel production in the
People’s Republic of China
, with operations in coal trading and heat and power
supply, today announced that it anticipates no material impact on the Company
from the Chinese Government’s recent announcement on thermal coal contract
prices, and confirms its recently issued net income guidance of $17 million to
$18 million
for 2010.

On June 25, 2010, the National Development and Reform Commission (NDRC)
issued a notice on its website, asking some of China’s major coal mining
players to keep contract coal prices steady. “Prices for coal under annual
supply contracts could not be changed, and coal miners must return any
additional charges before the end of June if they have lifted contract coal
prices. State-owned coal companies and industry leaders should lead the way in
keeping contract coal prices steady,” said the NDRC in the notice.

The purpose of this NDRC notice is to curb inflation and ensure sufficient
supplies of electricity during the summer. According to the China Coal
Resource website ( http://www.sxcoal.com ), the benchmark thermal coal price
in Qinghuangdao Port for 5,000 kilocalories increased 9.1% to $96 per ton in
late June 2010, compared to $88 per ton in late April 2010. In the same period
the price for 5,500 kilocalories of thermal coal rose to $111 per ton, up by
7.8% from $103 per ton.

“We do not anticipate that the recent requirement by the NDRC will have a
material impact on China Energy, since we sell on the spot coal market and
have not entered into any annual contract with Independent Power Producers.
Year to date, we have not experienced any pressure on our coal sales prices,”
commented Mr. WenXiang Ding, President and CEO of China Energy. “Furthermore,
we have maintained a steady and multi-faceted customer base, including coal
fired power plants, heating plants, steel manufacturing and metallurgy of
non-ferrous metals.”

About China Energy Corporation

China Energy Corporation produces and processes raw coal for domestic
heating, electrical generation and coking purposes for steel production
primarily in the People’s Republic of China, acts as a brokerage in
facilitating coal trade transactions, and provides heat and power locally. The
Company produces coal through its subsidiary Inner Mongolia Tehong Coal Group
Co, Ltd. (“Coal Group”) and supplies heating and electricity requirements
throughout the XueJiaWan district through its subsidiary Inner Mongolia
Zhunger Heat Power Co., Ltd. (“Heat Power”). Through Heat Power, China Energy
operates a thermoelectric plant and 32 heat transfer stations located in
XueJiaWan, Ordos City in which the Company has a monopoly for heating supply
granted to the Company by the local government. For additional information on
China Energy Corporation see http://www.ceccec.com .

Cautionary Statement Regarding Forward-Looking Information

This press release may contain certain “forward-looking statements”
relating to the business of China Energy Corporation, and its subsidiary
companies. All statements, other than statements of historical fact included
herein are “forward-looking statements” including statements regarding: the
impact of the proceeds from the private placement on the Company’s short term
business and operations,; the general ability of the Company to achieve its
commercial objectives, including the ability of the Company to sustain growth;
the business strategy, plans and objectives of the Company and its
subsidiaries; and any other statements of non-historical information. These
forward-looking statements are often identified by the use of forward-looking
terminology such as “believes,” “expects,” “anticipates,” “continue,” “will”
or similar expressions, involve known and unknown risks and uncertainties. The
Company’s actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of factors,
including those discussed in the Company’s periodic reports that are filed
with the Securities and Exchange Commission and available on its website

    For more information, please contact:

     Alex (Yuan) Gong, Chief Financial Officer
     Tel:   +86-10-5203-6900
     Email: alexgong08@gmail.com

    Investor Relations:
     HC International, Inc.
     Ted Haberfield, Executive VP
     Tel:   +1-760-755-2716
     Email: thaberfield@hcinternational.net

SOURCE China Energy Corporation

Source: newswire

comments powered by Disqus