SOURCE: China Energy Corporation

December 16, 2008 12:09 ET

China Energy Expands Heating Supply Capacity

New Heat Transfer Stations to Increase Geographic Reach and Revenues

ERDOS CITY, CHINA--(Marketwire - December 16, 2008) - China Energy Corporation (OTCBB: CHGY), a leading producer of coal, heat, and electricity in Inner Mongolia, China, is pleased to announce that it has successfully completed the construction of new facilities in an ongoing expansion of its heating supply capacity.

"The addition of 14 new heat transfer stations to our heat supply network has greatly increased the total geographic area that we are able to service and as a result, our potential client and revenue bases have increased as well," said Mr. WenXiang Ding, President of China Energy. "It is this continuing commitment to make further investments in new technologies and infrastructure that has positioned the Company as a market leading supplier of coal, heat, and electricity within this rapidly growing and modernizing region of China."

Inner Mongolia Zhunger County Heat Power Co. Ltd., a wholly owned subsidiary (pursuant to the Trust Agreement entered into on December 31, 2007) of the Company, operates a modern thermoelectric heating and power generation plant, along with 20 heat transfer stations in the XuanJiaWan District of Zhunger County, Inner Mongolia, China. Recently implemented enhancements at the Company's thermoelectric heating and power generating plant and the expansion of the heat pumping station network have increased its annual heat production capacity by over 150 times from 736,000 megajoules to 110,400,000 megajoules.

About China Energy Corporation.

China Energy Corporation, through its wholly owned subsidiaries, (pursuant to the Trust Agreement entered into on December 31, 2007) is a leading producer of coal, heat, and electricity in China. The Inner Mongolia TeHong Coal and Power Co. Ltd. operates the LaiYeGou Coal Mine with a current production rate of 500,000 tons per year. The Inner Mongolia Zhunger County Heat Power Co. Ltd. operates a modern thermoelectric heating and power generation plant, along with 20 heat transfer stations in the XuanJiaWan District of Zhunger County. The two companies, with total assets in excess of US$45 million and over 500 employees are located in Inner Mongolia, a rapidly modernizing autonomous region of the People's Republic of China.

To learn more about China Energy Corporation, visit www.chinaenergycorporation.com.

Forward-Looking Statements: This press release includes "forward-looking statements," which may be understood as any statement other than a statement of historical fact. Forward-looking statements contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainties, and changes in circumstances. Actual results may vary materially from management's expectations and projections expressed in this press release.