QSolar Limited
CNSX : QSL

May 16, 2012 13:31 ET

QSolar Limited Provides Update on Delay in Filing of Audited Financial Statements Pursuant to Management Cease Trade Order Granted

CALGARY, ALBERTA--(Marketwire - May 16, 2012) - QSolar Limited (CNSX:QSL) (the "Corporation") provides its bi-weekly update on the status of the delay in filing of its annual audited financial statements, and its related management, discussion and analysis, for the year ended December 31, 2011. The Corporation confirms that it intends to satisfy the provisions of the alternative information guidelines described in section 4.3 and 4.4 of National Policy 12-203, Cease Trade Orders for Continuous Disclosure Defaults, for so long as it remains in default of the requirement to file the Required Filings.

The Corporation's Chief Executive Officer and Chief Financial Officer, and other insiders are currently subject to a management cease trade order, applied for by and granted to the Corporation, on May 1, 2012 by the Alberta Securities Commission ("ASC") under Section 33.1 of the Securities Act. The Corporation's request for a management cease trade order was made when it became apparent that it would be delayed in filing its annual audited financial statements, and its related management, discussion and analysis. The management cease trade order restricts trading in the Corporation's securities by the Corporation's insiders, including Consents from the CEO and CFO, as opposed to an issuer cease trade order, which restricts all trading in the Corporation's securities.

In connection with the delay to file the annual audited financial statements and the Required Filings by April 29, 2012, the Corporation has applied to applicable Canadian securities regulators requesting a voluntary management cease trade order for the interim financial statements and its related management, discussion and analysis, for the quarter ended March 31, 2012 which are due prior to May 30, 2012.

The corporation confirms that: (i) there is no material change to the information set out in its initial application for a management cease trade order; (ii) it intends to file the annual financial statements and its related management, discussion and analysis and other Required Filings with the time allotted by the ASC; and (iii) there is no other material information concerning the affairs of the Corporation known to management that has not been generally disclosed.

The Corporation's auditor is in the process of the completion of the associated audit work, review and the Required Filings. The Corporation anticipates and best estimate that the auditors will be completed on or before May 25, 2012.

Management also anticipates that the March 31, 2012 interim financial statements and its related management, discussion and analysis, will be completed and filed within three days of filing the annual audited financial statements and Required Filings.

The delay in filing the Required Filings is principally related to delays in obtaining required information satisfactory to the auditors for the preparation of the Required Filings from the Corporation's UK subsidiary, QSolar Ltd., which has manufacturing operations in Shanghai, China. The Chinese division moved from outsourced contract manufacturing at the beginning of 2011 to its own manufacturing operations in July of 2011. In addition, the Corporation recently changed its auditor from its previous UK auditor during the Reverse Takeover process which occurred in March 2011. As part of and in addition to these transitions, the Corporation experienced delays and inefficiencies in obtaining required documentation, and has also experienced delays due to substantive audit procedures for its international operations. There have also been some delays associated with the new auditor having to familiarize itself with the international and manufacturing operations of the Corporation, particularly in China.

QSolar trades under the symbol QSL on the Canadian National Stock Exchange ("CNSX").

About QSolar Limited

QSolar Limited and its wholly-owned subsidiary, QSolar Ltd., develop patented and proprietary solar related processes and technologies, and manufacturing and sell proprietary solar products. The Corporation currently manufactures solar photovoltaic (PV) panels in its new manufacturing facilities in Shanghai, China and in a contracted manufacturing facility in Shenzhen, China using its proprietary patent pending Spraytek®, Kruciwatt® and ESS process and its own designs. QSolar products were initially introduced by QSolar in July 2010 and have attracted significant interest, orders and letters of intent from European and U.S. markets generated by its sales office representatives. QSolar Spraytek® panels offer several advantages over competing products as they have significantly lower losses in hot climates due to their design, offer superior solar cell encapsulation for better protection, longer life and cost less than equivalent solar products, and are now offered in various sizes and colors. In addition, QSolar offers solar panels with positive tolerance which means that the customer will get a guaranteed output which can be up to 5% more than the actual specifications.

Additional information on the operations or financial results of QSolar Limited and QSolar Ltd. are included in reports on file with applicable securities regulatory authorities and may be accessed through the CNSX website (www.cnsx.ca) and sedar website (www.sedar.com) under the profile for QSolar.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements included in this report and the documents that we incorporate by reference, are forward-looking statements and can generally be identified by words such as "will," "allow," "outlook," or the negative of these terms, and other comparable terminology.

Various risks and other factors could cause actual results, and actual events that occur, to differ materially from those contemplated by the forward looking statements, such as whether QSolar Limited is able to meet price, performance, quality and delivery requirements. Although QSolar believes that the expectations represented by any forward-looking statements and forward-looking information contained herein are reasonable based on the information available to them on the date of this document, management cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements or forward-looking information. QSolar undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events.

The CNSX has neither approved nor disapproved the contents of this press release. The CNSX does not accept responsibility for the adequacy or accuracy of this release.

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