Trading Update

AUHUA CLEAN ENERGY PLC

("Auhua" or the "Company")

Trading Update

24 December 2014:Auhua Clean Energy Plc (AIM: ACE) (the "Company"), the environmental technology group, is pleased to announce that it expects to meet market expectations for FYE2014.

Weihai Auhua New Energy Co Ltd, one of the Company's subsidiaries, was awarded the status of "Shandong Provincial Enterprise Technical Center" on 14 November 2014. Conferred by the Shandong Economic and Information Technology Committee, the award is only made to companies with certain competitive advantages in terms of technology and operating results over its competitors in the same industry and with strong research and development capability.

Chen Anxiang, Chief Executive Officer of Auhua, commented,"This award affirms Auhua as a leader in technology in Shandong in the area of solar thermal technologies, as only one company is awarded in a category for the whole province, and a good endorsement as we expand into neighbouring provinces and other countries."

The Company continues to make significant progress in research and development, including the joint research project between Taiwan Ziolar Technology Co. Ltd ("Ziolar") and Purdue University on Building Integrated Solar Thermal systems (BIST). Ziolar has since July 2014 filed 4 Chinese patents and 2 U.S. patents and intends to set up a pilot solar thermal coating production line in 1H 2015.

Meanwhile, the Company's sales have continued to grow at a moderate pace; the Company has implemented a more selective process in choosing its customers by shifting its focus on the mid-large pan provincial property developers and with current production reaching full capacity. On 29 November 2014, the company signed an agreement with a subsidiary of Green Land Group to supply 1,570 units of solar water heaters. This is the first time that Auhua has worked with Green Land Group. Green Land Group was ranked No. 268 among the Fortune Global 500 companies in 2014. In 2013, properties sold by the Group amounted to 16,600,000 sqm, or RMB162.5 billion which was ranked No. 1 in the industry for the number of units sold.

David Sumner, Chairman of Auhua, added: "This is a significant breakthrough for the Company to be working with one of China's largest property development companies. Green Land contracted sales grew by over 80% in January to November 2014 despite the property curbs in China. We are hoping that this will be the first of many such partnerships with them."

The Company expects to release its annual results in April 2015.

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About Auhua:

Auhua Clean Energy (www.auhuacleanenergy.com) is an environmental technology group based in the Shandong Province of Eastern China specialising in the development and application of green energy and energy efficient solar thermal solutions. In particular, the Group is focused on the manufacture and sale of split-unit solar water heating systems.

Auhua Clean Energy operates through its wholly owned subsidiaries Shandong Auhua New Energy Co., Ltd, Weihua Auhua New Energy Co., Ltd., and Taiwan Ziolar Technology Co. Ltd, of which Auhua Holdings Pte Ltd is the intermediate holding company.