TSX: HE

VANCOUVER, June 24 /CNW/ - Hanwei Energy Services Corp. ("Hanwei" or the "Company") is pleased to announce that it has signed a non-binding letter of intent ("LOI") with the Xilinguole Prefecture Administration Bureau, Inner Mongolia Autonomous Region of China ("Xilinguole Bureau") contemplating the supply of wind power turbines and blades for up to 3,000 MW of wind resources located in the area administered by the Xilinguole Bureau. This is the second LOI Hanwei has entered into to participate in the development of wind power resources in the Inner Mongolia Autonomous Region (see press release dated April 22, 2009). In addition, Hanwei is also pleased to provide an update on Hanwei's business operations, which follows in the second part of this press release.

Under the non-binding LOI, it is contemplated that the parties will cooperate to develop a 3,000 MW wind resource under certain terms and conditions including the following:

-   It is contemplated that Hanwei will establish a wind power subsidiary
    in Xilinguole and the subsidiary will build a manufacturing facility
    in the Xilinguole region with an initial capacity of at least 200
    turbines and blade sets per annum; and that Hanwei will use its best
    efforts to complete construction of the facility before the end of
    2010.
-   It is provided that the Xilinguole Bureau will facilitate all
    government approvals for the wind farm and manufacturing facility;
    and that Xilinguole Bureau will exclusively promote the use of wind
    power equipment manufactured by Hanwei.
-   It is further provided that Hanwei and Xilinguole Bureau will
    cooperate to identify investors and operators for the Xilinguole wind
    resource.

Hanwei and the Xilinguole Bureau are currently engaged in discussions to settle the terms for a binding agreement and the timeline for construction of the wind power facility and delivery of the turbines and blade sets. Hanwei does not expect the LOI or the binding agreement (if one is concluded) to have a material impact on its funding needs for 2009 or its financial performance for 2009 as presented with the release of its 2008 financial results. If Hanwei and the Xilinguole Bureau settle the terms for a binding agreement, Hanwei will need to secure significant working capital to support the construction of the new facility and the production of turbines and blade sets.

"Xilinguole is being developed as an energy centre for China with its large wind and coal resources. The Chinese government is investing in the Xilinguole energy industry by expanding and improving the electric grid infrastructure to support growing energy exports to other parts of China," said Mr. Fulai Lang, CEO of Hanwei. "This LOI, combined with the LOI we recently signed for Boatou, represent our efforts to attempt to secure additional customers for our wind power business. However, Hanwei faces significant challenges to progress these LOI's to formal contracts and start delivering wind power equipment."

Hanwei is pleased to provide an update of its business operations as follows.

Wind Power Equipment
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Hanwei has secured the supply chain and funding to deliver 118 MW of wind power equipment to Daqing Ruihao Energy Technology Co., Ltd. ("Ruihao") under its agreement to supply 1,200 MW wind power equipment products. The wind power equipment is to be supplied to three subsidiaries of Ruihao, including Daqing Longjiang Wind Power Co. Ltd. ("Longjiang"), with the majority of deliveries expected in the second half of 2009 and in early 2010. Longjiang owns and operates the wind farm in Du Meng County, Heilongjiang Province, where it is installing the initial 40 wind turbines supplied by Hanwei. Ruihao is developing two other wind farms in Heilongjiang Province that will be supplied under the agreement with Hanwei.

Longjiang is currently installing the balance of the 40 turbines delivered by Hanwei to date. The installed turbines are performing well and Hanwei expects the mandated 500-hour testing process to start in July. Hanwei's research and development team are working to improve the current 1.5 MW turbines, focusing on the quality and cost of the supply chain and improving performance under regional weather conditions. In addition, Hanwei is working on a development plan for 2.0 MW and 2.5 MW technologies, including the consideration of licensing or joint development programs.