Hanwei Energy Services Corp.
TSX : HE

Hanwei Energy Services Corp.

December 10, 2010 08:00 ET

Hanwei Energy Services Corp. Engages Envoy Energy Partners Inc. as Strategic Advisor for International Expansion of Core FRP Business

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 10, 2010) - Hanwei Energy Services Corp. (TSX:HE) ("Hanwei" or the "Company"), today announced that it has entered into an Advisory Services Agreement (the "Agreement") with Envoy Energy Partners Inc. ("Envoy") under which Envoy shall provide certain advisory services to Hanwei to facilitate increased international sales for the Company's core FRP pipe business products and services, including negotiating and completing strategic business transactions.

Pursuant to the Agreement, Envoy will be solely compensated on a success fee basis that comprises of: (i) a 5% commission payable based on gross sales proceeds from channels identified and procured by Envoy; and (ii) a grant of stock options. Envoy, and other consultants assisting the Company and Envoy, shall receive stock options to acquire up to 3,000,000 common shares of the Company priced at a minimum of $0.35 and which shall vest in staged increments subject to specific sales performance milestones being met. No options shall vest until a minimum of $25 million in incremental sales has been achieved. Thereafter 250,000 stock options shall vest for every additional $25 million in incremental sales achieved. The stock options will have a term of five years and will be subject to Hanwei's share stock option plan. No fees shall be paid to Envoy in advance of such incremental sales being delivered to Hanwei.

About Envoy Energy Partners Inc.

Envoy is a privately-owned Canadian company which provides various services, including advice regarding the energy and industrial services business globally, and introductions to sources of capital and structuring of accretive financial instruments.

About Hanwei Energy Services Corp.

Hanwei Energy Services Corp. is the leading Chinese manufacturer of high pressure, fiberglass reinforced plastic ("FRP") pipe products and associated technologies and services for the international oil and gas sector. Hanwei serves major energy customers in the Chinese and global energy markets.

www.hanweienergy.com

FORWARD-LOOKING INFORMATION

Certain information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. Material factors or risks which could cause actual results or events to differ materially from a conclusion in such forward-looking information include the risks that the Company is unable to address the warranty repairs for defective products, the sales of FRP pipe products will not stabilize, the Company is unable to make deliveries of FRP pipe products in Kazakhstan and the Middle East, the Company will not be able to repay its short-term loans or to have such loans renewed, the industries in which the Company operates will not recover, the Company's business segments will not experience expected growth in the near future, the Company may not be able to fulfill its sales orders, the Company is unable to reposition or downsize its wind power business, the Company is not able to meet its capital and financing needs, the creditworthiness of the Company's customers deteriorates and the Company is unable to collect on outstanding accounts receivable, as well as the risks set out in the risk factors section of the Company's Annual Information Form dated June 29, 2010 filed with Canadian securities regulators and available on SEDAR at www.sedar.com.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE PRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, THE COMPANY DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME, EXCEPT AS REQUIRED BY APPLICABLE SECURITIES LEGISLATION.

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

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