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ANNOUNCEMENT AND RESUMPTION OF TRADING

This announcement is made by Sino Dragon New Energy Holdings Limited (the "Company") pursuant to Rule 13.09(1) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

BACKGROUND

Reference is made to the Company's circular (the "Circular") dated 31 August 2011 in relation to the acquisition of Haney Holdings Limited (the "Target Company") by the Company. The Target Company directly holds the entire interest of World Target Investment Development
Limited ("World Target") which in turns holds the entire interest in