China Clean Energy today (15th November) announced that it has completed a share exchange with China Clean Energy Resources, Ltd., a rapidly growing manufacturer and distributor of biodiesel fuel and specialty chemicals made from renewable resources, on October 24, 2006. The merged public company is headquartered in Fuqing City in the Fujian province of the People's Republic of China (''PRC'') and will operate under the name China Clean Energy Inc. The management team is led by Chairman and Chief Executive Officer Mr. Tai-ming Ou, and Vice President of Production and Engineering, Mr. Ri-wen Xue. The newly-formed public company has approximately 21.3 million common shares outstanding, and is quoted on the OTC Bulletin Board under the symbol CCGY. 

China Clean Energy, through its wholly-owned subsidiary Fujian Zhongde Technology Co, manufactures biodiesel fuel and high-quality specialty chemical products from renewable resources, such as waste grease and vegetable oils. The company currently has a patent pending for its proprietary biodiesel production method. In addition, the company is continuously re-evaluating new manufacturing technologies, and expects to pursue more patent protection for its proprietary technology and processes. It also has an established research and development facility with close ties to prominent universities and research centers in China. ''China is now the second largest oil consumer in the world, with current consumption at approximately seven million barrels of oil per day, and its need for petroleum continues to grow rapidly,'' Mr. Tai-ming Ou stated. ''While China's biodiesel industry is still very much in its infancy, we anticipate greater demand for alternatives like biodiesel fuel, particularly in light of recent government legislation designed to reduce China's dependence on fossil fuels.''

The company began commercially producing and selling biodiesel fuel in December 2005, and sales have steadily increased. For the six months period ended June 30, 2006, biodiesel fuel sales accounted for over 27% of the company's total $6.1 million in sales. Also for the six months period ended June 30, 2006, the company's consolidated gross profit margin was 27.4% and net income reached $0.7 million over the same period.

China Clean Energy's ISO 9001-certified plant is located in Fuzhou City's technology and industrial zone in the Fujian Province of China, and
currently has annualized capacity for 4,800 tons (or approximately 1.4 millions gallons) for biodiesel fuel and 15,000 tons for speciality chemicals. The company is currently in the process of expanding the capacity of the plant's annualized biodiesel fuel production to 10,000 tons
(or approximately 3.0 million gallons) expected to be in place by the first quarter of 2007.

"The completion of this merger enables China Clean Energy to broaden our investor base, create a liquid market for our stock, and financially
support the accelerated growth of our business," commented Mr. Tai-ming Ou. "Our near-term goal is to expand our capacity, which we expect to execute with minimal disruption to our current infrastructure and production schedules. This added capacity will bring us one step further in our longer-term goal of becoming a global market leader for the development and manufacturing of energy products and specialty chemicals made from renewable resources.

''We are currently evaluating our options to build at least two new biodiesel plants, and expect to have a new plant online in the year 2008, which should add about 50,000 tons of annual biodiesel capacity, taking our total annual biodiesel production capacity to approximately 60,000 tons (or approximately 18 million gallons). We also plan to build our third plant in early 2009 which we anticipate would add approximately 60,000 tons of annual biodiesel capacity to our company. We believe we can achieve our growth strategy given our early entry advantage and the strong demand for our biodiesel as well as specialty chemicals from renewable resources.''

On October 24, 2006, China Clean Energy Inc. (formerly Hurley Exploration Inc.), and China Clean Energy Resources Limited, a privately-held British Virgin Islands corporation, entered into a share exchange to reorganize as a publicly-traded company. The transaction was completed on October 24, 2006, resulting in China Clean Energy Resources Ltd. becoming 100% owned by China Clean Energy Inc. In connection with the share exchange, the company also closed a $1.05 million private placement, in which it sold a total of 1,050,000 shares of common stock. Following the share exchange and private placement, there were 21,082,269 common shares issued and outstanding. On November 9th, 2006 the company sold an additional 250,000 shares through a private placement for $250,000 bringing the total number of common shares issued and outstanding to 21,332,269 as of November 9, 2006. Additional details of these transactions can be found in the company's Current Reports on Form 8-K filed with the Securities & Exchange Commission on October 30, 2006 and November 13, 2006.