Sino Clean Energy, Inc. Announces Special Dividend to Common Stockholders

Shareholders of common stock of the Company as of June 13, 2011, will receive one (1) CVR for each share of common stock outstanding as of such record date. Each holder will be entitled to receive such holder's pro rata share of 90% of the proceeds of the lawsuit, if any, that may be received by the Company, less certain legal and other expenses that will be deducted from such proceeds.  Each holder entitled to receive CVRs will receive a certificate evidencing the CVRs, and such holder will be evidenced in a register to be maintained by the Company's transfer agent.  The certificate evidencing the CVRs is expected to be distributed on or prior to June 20, 2011.  The actual distribution date of the proceeds is unknown at this time, and will be based upon whether the Company is successful in obtaining a judgment in its favor, or a settlement, in connection with the lawsuit.  If such judgment or settlement is achieved, then a distribution date will be declared at such time.  The CVRs will expire upon the entry of a final, non-appealable judgment or settlement in the underlying lawsuit.

"After a thorough discussion with the Board, I am delighted to announce the decision to pay a portion of the proceeds we receive from this lawsuit to our common stockholders," stated Baowen Ren, Chairman of Sino Clean Energy. "This decision signifies our commitment to returning capital back to our stockholders. We believe we are well positioned to significantly increase our profits and cash flows in 2011 and are confident in Sino Clean Energy's future growth prospects."

About Sino Clean Energy

Sino Clean Energy is a U.S. publicly traded company and a China-based producer and distributor of coal-water slurry fuel ("CWSF"). With locations in Shaanxi Province, Liaoning Province and Guangdong Province, Sino Clean Energy is one of the leading CWSF producers in China. For more information about Sino Clean Energy, please visit http://www.sinocei.net.

Safe Harbor Statement

This press release contains certain "forward-looking statements," as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Such factors include, but are not limited to uncertainties in product demand, the impact of competitive products and pricing, our ability to obtain regulatory approvals, changing economic conditions around the world and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.