On June 14, 2011, Mr. Baowen Ren, Sino Clean Energy, Inc.'s (the "Company") chief executive officer held a conference call with one of the Company's investors. During this conference call, Mr. Ren disclosed that during the month of June 2011, the Company saw a higher than normal slow-down in customer demand for coal-water slurry fuel ("CWSF") at the Company's Tongchuan facility. The Company previously disclosed that it has seasonal adjustments in residential heating demand, however, during June 2011, the Company's industrial customers' demand for CWSF also slowed down. Mr. Ren advised that this slow down for existing customers was due to customers' lack of capital as a result of credit tightening and the customers' inability to obtain lines of credit from banks. Mr. Ren further stated that he believed that overall customer demand for CWSF at the Tongchuan facility in June 2011 would be approximately 50% of such demand in June 2010.

Mr. Ren also disclosed this week that the Company learned that the previously disclosed two-month shut-down of Haizhong Heat Resource, Ltd. ("Haizhong Heating"), which accounted for 34% of the Company's sales in the quarter ended March 31, 2011, is expected to take longer than initially expected. The Company previously disclosed that due to government requirements, Haizhong Heating had to change a pipeline in certain areas of the "Ming Fa" real estate development project and that the modification would take approximately two months in the second quarter of 2011, during which time Haizhong Heating would stop operating its CWSF boilers. At the time of the initial disclosure, the Company estimated that the reduction in sales volume due to this business interruption would be approximately $4.7 million based on a reduction of approximately 41,000 metric tons to Haizhong Heating. The Company learned this week from Haizhong Heating that progress on the modification has been delayed for another three months, until August 2011.

The Company expects that there will be a reduction in earnings for 2011 due to the above. The amount of such impact has not yet been determined, however the Company will release revised earnings for 2011 as soon as it is available.