Sino Clean Energy Inc. was originally incorporated in Texas as “Discount Mortgage Services, Inc.” on July 11, 2000 and in September 2001, the Company purchased Endo Networks, Inc., a corporation incorporated in Ontario, Canada on January 11, 2001. In November 2001, the Company changed its name to Endo Networks, Inc. and was redomiciled to the State of Nevada in December 2002. The Company is engaged in the research, development, production and sale of its “coal water mixture” product, a fuel substitute for oil, gas or coal.

The Company business operations are conducted through its wholly-owned subsidiary, Hangson Limited. Hangson was incorporated under the laws of the British Virgin Islands on June 2, 2006. Hangson conducts its business operations through Shaanxi Suoang. For the fiscal 2006, Shaanxi Suoang was engaged in two lines of businesses: the research, development, production, marketing and sales of coal-polymer resin products, and also in the research, development, production and sale of “coal-water mixture”, fuel substitute product. However, the Company decided to focus on its CWM Fuel product business. Thus, in December 2006, Shaanxi Suoang ceased operations of the COPO resin products business and is now focusing on its CWM Fuel product business.

Shaanxi Suoang conducts its CWM Fuel operations through its subsidiary, Shaanxi Suoang New Energy Enterprise Company Ltd.. Shaanxi Suoang owns a controlling 80% equity interest in Suoang New Energy. The Company’s CWM Fuel production plant became operational and production of its CWM Fuel commenced in August 2007. CWM Fuel is a fuel substitute that can be used instead of oil, coal and gas, in industrial boilers, power plant boilers and industrial kilns. CWM Fuel is a viscous, liquid fuel that is produced by mixing grinded coal, water and chemical additives.

This liquid fuel can be stored, pumped and burned as a substitute for oil or gas in properly modified furnaces or boilers. CWM Fuel is an environmentally friendly fuel. The Company is planning to conduct the research and development in the future to further develop and improve the quality of its CWM Fuel products. It is also planning to conduct promotional marketing activities to publicize its product and enhance the Company’s image as well as to reinforce the recognition of the Company’s brand name through assistance from the local government.