Qiao Xing Universal Resources Announces Suspension of Mining Operations at Haozhou Mine

Qiao Xing Universal Resources,

announced today that its wholly-owned subsidiary, Chifeng Haozhou Mining Co., Ltd., has suspended mining operations at its copper-molybdenum poly-metallic mine, located within the Balinzuo Banner administrative area of Chifeng City, Inner Mongolia, China. The decision was made following the receipt of a safety-inspection report from the inspection team based at the open-pit mining area. Based on a preliminary investigation, it appears that the structural integrity of the mining-waste containment dam may have been compromised due to massive rainfall and flooding in the region during July and August 2011. Some progressing leaks were found during a safety check on the containment dam. These leaks may have been caused by prolonged periods of excessive rainfall during this period, which resulted in high water levels at the mining waste-containment reservoir. In consideration of the safety of the Company's employees, environmental protection concerns and the safety of the residents downstream of the containment dam, the Company has ordered an immediate suspension of the molybdenum mining operation in order to further investigate the situation, evaluate remedial options, and curb the progressing leaks on the containment dam. Monitoring and Remediation Plan The production and safety team is actively monitoring the water level at the mining-waste containment reservoir, as well as the structural integrity of the containment dam. At the same time, the Company is also evaluating possible remedial options to fix the containment dam and resume mining operation as soon as possible. Since it is now winter in the mining region, repair of the containment dam may not be feasible until summer.