SinoTech Addresses NASDAQ Trading Halt; Forms Special Committee

SinoTech Energy Limited

today announced that, following allegations made by alfredlittle.com, an acknowledged short seller of the Company's American Depositary Shares, and the subsequent halting of trading in the Company's ADSs, NASDAQ has requested that the Company provide certain additional information. The Company intends to cooperate fully with NASDAQ and hopes to meet with NASDAQ as soon as practicable to address its concerns in order to allow for the resumption of trading in the Company's ADSs. As disclosed during the investor conference call held by the Company on August 17, 2011, SinoTech has formed a Special Committee of its board of directors ("Special Committee"), consisting of independent directors Ms. Jing Liu and Mr. Heqing Yao, to investigate the allegations in the alfredlittle.com report. Ms. Liu has over 17 years of experience in financial management and has served in a number of senior finance roles. Mr. Yao has over 30 years of experience in the oil and gas industry and has held various top executive positions in government and the private sector. The Special Committee's mandate is to examine the allegations made by alfredlittle.com, perform a comprehensive, independent investigation, and report its findings and recommendations to the board of directors. The Special Committee has retained Shearman & Sterling LLP as its independent legal counsel, and Shearman & Sterling LLP intends to engage an independent forensic auditor. The Special Committee has also been authorized to retain such other advisors as it deems necessary. Also as previously announced, the Company has established a physical data room at its headquarters in Beijing where interested investors can examine materials refuting the allegations made by alfredlittle.com. Digital copies of materials have also been made available in a digital data room. SinoTech may add materials to both the physical and digital data rooms.