Sino Clean Energy, Inc. (SCEI) Announces Cooperation MOU with Nathalin Welstar Energy, Company Limited

XI’AN, China, Aug. 29, 2011 /PRNewswire-Asia-FirstCall/ — Sino Clean Energy Inc. (NASDAQ: SCEI) (“Sino Clean Energy,” or the “Company”), a leading producer and distributor of coal-water slurry fuel (“CWSF”) in China, today announced that it has signed a Memorandum of Understanding (“MOU”) and a preliminary engineering, procurement, and construction (“EPC”) agreement with Nathalin Welstar Energy, Company Limited (“Nathalin Welstar Energy” or “Nathalin”) for cooperation in the construction of a coal water slurry plant in Thailand.

Nathalin Welstar Energy, a subsidiary of leading Thai marine petroleum transport company Nathalin Group, focuses on developing environmentally-friendly energy sources, such as solar, wind, and clean coal. Under the agreement, Nathalin would invest in a 50,000 metric ton coal water slurry fuel (“CWSF”) production facility and a minimum 6,000 KW net output electricity power plant along with associated infrastructure. A leader in CWSF manufacturing and distribution in China and what management believes is the first US-listed Chinese company in the CWSF industry, Sino Clean Energy intends to undertake a site visit in Thailand for study and inspection to begin the process of consulting on the technical and financial aspects of the project.

Mr. Baowen Ren, chairman and chief executive officer of Sino Clean Energy, commented, “I am encouraged that we reached a pre-EPC agreement with Nathalin Welstar Energy following five months of negotiations. We highly regard the prospects of cooperation, not only because of the possible economic benefits, but also because of the strategic value of international partnership and expansion for the Company. If the pilot project succeeds, both parties plan to apply the cooperative model to larger scale CWSF facilities and electric power plants in Thailand. The Company believes that this pilot project might open up access for the company to a potentially large CWSF market in South East Asia.”

About Sino Clean Energy

Sino Clean Energy is the third largest producer of coal-water slurry fuel (“CWSF”) by sales in China, according to data provided in Frost Sullivan’s 2010 Chinese CWSF market report. A leader in developing CWSF as a cleaner alternative to burning coal aggregate in heating, industrial and power generation for residential and industrial applications, the Company has seven production lines located in Shaanxi, Liaoning, and Guangdong provinces. For more information about Sino Clean Energy, please visit http://www.sinocei.net.