| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
|------------------------------------------------------------------------------------------|

| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|------------------------------------------------------------------------------------------|

| Nevada(State or other jurisdiction ofincorporation or organization) | 84-0601802(I.R.S. EmployerIdentification No.) |
|---------------------------------------------------------------------|-----------------------------------------------|

| No. 485 Tengfei Third,Shuangliu Southwest Airport Economic Development Zone,Shuangliu, ChengduPeople’s Republic of China, 610207 |
|----------------------------------------------------------------------------------------------------------------------------------------|
| (Address of principal executive offices)                                                                                               |

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| ITEM     |         |                                                                                        |   |  Page     |
|----------|--------------|---------------------------------------------------------------------------------------------|--------|----------------|
|     |         |                                                                                        |   |           |
| PART I   |         | FINANCIAL INFORMATION                                                                  |   |   3       |
| Item 1.  |         | Financial Statements                                                                        |   | 3         |
| Item 2.  |         | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   | 15        |
| Item 3.  |         | Quantitative and Qualitative Disclosures About Market Risk                                  |   | 23        |
| Item 4.  |         | Controls and Procedures                                                                     |   |  24  |
|     |         |                                                                                        |   |           |
| PART II  |    |  OTHER INFORMATION                                                                     |   | 25             |
| Item 1.  |         | Legal Proceedings                                                                           |   | 25             |
| Item 1A. |         | Risk Factors                                                                                |   | 25             |
| Item 6.  |         | Exhibits                                                                                    |   | 25             |
|     |         |                                                                                        |   |           |
|     |         | Signatures                                                                                  |   | 26        |

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| APOLLO SOLAR ENERGY, INC.                                                                                                                                                          |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                                                                                                        |   |
| (In US Dollars)                                                                                                                                                                    |   |
|                                                                                                                                                                               |   | March 31, 2011 |   |   | December 31, 2010 |   |
|                                                                                                                                                                               |   | (Unaudited) |   |   |   |   |
|                                                                                                                                                                               |   |   |   |   |   |   |
| ASSETS                                                                                                                                                                             |   |   |   |   |   |   |
|                                                                                                                                                                               |   |   |   |   |   |   |
| Current assets:                                                                                                                                                                    |   |   |   |   |   |   |
|     Cash and cash equivalents                                                                                                                                       |   | $ | 1,182,327 |   |   | $ | 2,676,176 |   |
|     Account receivable net of allowance for doubtful accounts                                                                                                       |   |   | 2,058,639 |   |   |   | 294,214 |   |
|        $2,316 and  $3,465, respectively                                                                                                    |   |   |   |   |   |   |   |   |
|     Inventories                                                                                                                                                     |   |   | 5,277,835 |   |   |   | 6,809,700 |   |
|     Due from Related parties                                                                                                                                        |   |   | 2,901 |   |   |   | 4,412, 629 |   |
|   Deferred taxes asset                                                                                                      |   |   | 80,856 |   |   |   |   |   |
|     Prepaid expenses and other current assets                                                                                                                       |   |   | 407,130 |   |   |   | 799,359 |   |
|         Total current assets                                                                                                                    |   |   | 9,009,688 |   |   |   | 14,992,078 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Property, machinery and mining assets, net                                                                                                                                         |   |   | 21,081,575 |   |   |   | 21,081,705 |   |
| Asset held for sale                                                                                                                                                                |   |   | 1,107,709 |   |   |   | 1,098,700 |   |
| Non-marketable  investment                                                                                                                                               |   |   | 53,447 |   |   |   | 53,012 |   |
| Investment in joint venture                                                                                                                                                        |   |   | 463,014 |   |   |   | 587,504 |   |
|                                                                                                                                                                               |   |   | 22,705,745 |   |   |   | 22,820,921 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|          Total Assets                                                                                                                      |   | $ | 31,715,433 |   |   | $ | 37,812,999 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Current liabilities:                                                                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|      Short-term loan                                                                                                                                           |   |   | 4,662,065 |   |   |   | 5,002,802 |   |
|      Account payable - trade                                                                                                                                   |   |   | 190,488 |   |   |   | 375,520 |   |
|                           - construction vendors |   |   | 2,562,016 |   |   |   | 2,844,102 |   |
|      Accrued expenses and other current liabilities                                                                                                            |   |   | 2,212,774 |   |   |   | 1,098,178 |   |
|      Deferred taxes liability                                                                                                                                  |   |   | 0 |   |   |   | 25,329 |   |
|      Due to related parties                                                                                                                                    |   |   | 247,170 |   |   |   | 1,814,260 |   |
|            Total current liabilities                                                                                             |   |   | 9,874,513 |   |   |   | 11,160,191 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Shareholders' equity                                                                                                                                                               |   |   |   |   |   |   |   |   |
|      Preferred stock, $.001 par value,25,000,000 shares authorized,                                                                                            |   |   |   |   |   |   |   |   |
| 0 shares issued and outstanding at March 31, 2011 and December 31, 2010                                                                                                            |   |   |   |   |   |
|      Common stock, $.001 par value, 100,000,000 shares authorized,                                                                                             |   |   | 51,656 |   |   |   | 51,656 |   |
| 51,655,961 shares issued and 49,237,038 shares outstanding at March 31, 2011and 51,655,961 issued and outstanding at December 31, 2010                                        |   |
|      Additional paid-in capital                                                                                                                                |   |   | 31,870,260 |   |   |   | 31,709,395 |   |
|    Treasury stock, 2,418,923 shares at cost                                                                                                                         |   |   | (5,273,253) |   |   |   |   |   |
|      Accumulated deficit                                                                                                                                       |   |   | (7,049,246 | ) |   |   | (7,128,838 | ) |
|      Accumulated other comprehensive income                                                                                                                    |   |   | 2,241,503 |   |   |   | 2,020,595 |   |
|            Total shareholders' equity                                                                                            |   |   | 21,840,920 |   |   |   | 26,652,808 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|            Total Liabilities And Shareholders' Equity                                                                            |   | $ | 31,715,433 |   |   | $ | 37,812,999 |   |

----

| APOLLO SOLAR ENERGY, INC.                                            |   |
|----------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE (LOSS) |   |
| (Unaudited)                                                          |   |
| (In US Dollars)                                                      |   |
|                                                                 |   |   |   |   |   |   |
|                                                                 |   | Three Months Ended March 31, |   |
|                                                                 |   | 2011 |   |   | 2010 |   |
|                                                                 |   |   |   |   |   |   |
| Sales                                                                |   | $ | 3,783,220 |   |   | $ | 1,073,774 |   |
| Cost of sales                                                        |   |   | (3,430,156 | ) |   |   | (839,028 | ) |
| Gross profit                                                         |   |   | 353,064 |   |   |   | 234,746 |   |
| Operating Expenses                                                   |   |   |   |   |   |   |   |   |
| General and administrative expenses                                  |   |   | 900,781 |   |   |   | 1,190,137 |   |
| Selling expenses                                                     |   |   | 70,273 |   |   |   | 72,101 |   |
| Research and development expenses                                    |   |   | 30,810 |   |   |   | 9,577 |   |
| Total Operating Expenses                                             |   |   | 1,001,864 |   |   |   | 1,271,815 |   |
| Operating Loss                                                       |   |   | (648,800 | ) |   |   | (1,037,069 | ) |
| Other Income (expense)                                               |   |   |   |   |   |   |   |   |
| Interest income (expense)                                            |   |   | 743,170 |   |   |   | (104,286 | ) |
| Other income                                                         |   |   |   |   |   |   | 55,196 |   |
| Equity in loss of Joint Venture                                      |   |   | (111,843) |   |   |   |   |   |
| Loss before Income tax                                          |   |   | (17,473 | ) |   |   | (1,086,159 | ) |
| Provision for Income tax (credit)                                    |   |   | (97,066) |   |   |   |   |   |
| Net Income (Loss)                                                    |   |   | 79,593 |   |   |   | (1,086,159 | ) |
| Other Comprehensive Income (Loss)                                    |   |   |   |   |   |   |   |   |
| Foreign Currency Translation Adjustment                              |   |   | 186,139 |   |   |   | 3,033 | ) |
| Comprehensive income (loss)                                          |   |   | 265,732 |   |   |   | (1,083,126 | ) |
|                                                                 |   |   |   |   |   |   |   |   |
| Basic and Diluted Loss per common share                              |   |   |   |   |   |   |   |   |
| Basic and diluted                                                    |   | $ | (0 | ) |   | $ | (0.02 | ) |
|                                                                 |   |   |   |   |   |   |   |   |
| Weighted average common share outstanding                            |   |   |   |   |   |   |   |   |
| Basic and diluted                                                    |   |   | 51,091,546 |   |   |   | 44,555,131 |   |

----

| APOLLO SOLAR ENERGY, INC.                                                                        |   |
|--------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                            |   |
| (Unaudited)                                                                                      |   |
| (In US Dollars)                                                                                  |   |
|                                                                                             |   |   |   |   |   |   |
|                                                                                             |   | Three Months Ended March 31, |   |
|                                                                                             |   | 2011 |   |   | 2010 |   |
|                                                                                             |   |   |   |   |   |   |
| Cash flows from operating activities                                                             |   |   |   |   |   |   |
| Net inome (loss)                                                                                 |   | $ | 79,593 |   |   | $ | (1,086,159 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: |   |   |   |   |   |   |   |   |
| Stock-based compensation                                                                         |   |   | 160,865 |   |   |   | 394,436 |   |
| Depreciation                                                                                     |   |   | 241,015 |   |   |   | 226,552 |   |
| Deferred tax assets                                                                              |   |   | (106,185 | ) |   |   | - |   |
| Other interest income                                                                            |   |   | (837,359 | ) |   |   |   |   |
|       Equity in loss of Joint Venture                                   |   |   | 111,843 |   |   |   |   |   |
| Changes in assets and liabilities:                                                               |   |   |   |   |   |   |   |   |
| (Increase) decrease in -                                                                         |   |   |   |   |   |   |   |   |
| Account receivable-trade                                                                         |   |   | (1,753,928 | ) |   |   | (656,213 |   |
| Inventories                                                                                      |   |   | 1,580,422 |   |   |   | (319,763 |   |
| Prepaid expenses and other  current assets                                                  |   |   | 396,750 |   |   |   | (38,591 |   |
| Account payable-trade                                                                            |   |   | (187,247 | ) |   |   | 226,505 |   |
| Accounts payable - construction                                                                  |   |   | (304,007 | ) |   |   | 19,666 |   |
| Accrued expenses and other  current liabilities                                             |   |   | 979,789 |   |   |   | (11,126 |   |
| Net cash provided by (used in) operating activities                                              |   |   | 361,551 |   |   |   | (1,244,693 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Cash flows from investing activities                                                             |   |   |   |   |   |   |   |   |
| Purchase of property and equipment                                                               |   |   | (68,805 | ) |   |   | (39,416 |   |
| Net cash used in investing activities                                                            |   |   | (68,805 | ) |   |   | (39,416 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Cash flows from financing activities                                                             |   |   |   |   |   |   |   |   |
|         Proceeds from (repayment of) short-term loans         |   |   | (380,009 | ) |   |   | 1,464,674 |   |
| Advance from (payment to) shareholders                                                           |   |   | (1,690,029 | ) |   |   | 1,965,276 |   |
| Advance from  related party                                                                 |   |   | 237,428 |   |   |   | 15,105 |   |
|     Net cash provided by (used in) financing activities                           |   |   | (1,832,610 | ) |   |   | 3,445,055 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
|     Effect of exchange rate changes on cash and cash equivalents                  |   |   | 46,015 |   |   |   | 110 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                             |   |   | (1,493,849 | ) |   |   | 2,161,056 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Cash and cash equivalents, beginning of period                                                   |   |   | 2,676,176 |   |   |   | 507,776 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Cash and cash equivalents, end of period                                                         |   | $ | 1,182,327 |   |   | $ | 2,668,832 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                                               |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Interest paid                                                                                    |   | $ | 67,300 |   |   | $ | 55,105 |   |
| Income taxes paid                                                                                |   | $ | 9,134 |   |   | $ | 91,042 |   |
| Supplementary disclosure of non-cash financing activities                                        |   |   |   |   |   |   |   |   |
| Treasury stock acquired in exchange for loans to related parties                                 |   | $ | 4,435,894 |   |   | $ | - |   |

----

----

|             |   | As of          |      |
|------------------|--------|----------------|-----------|
|             |   | March 31, 2011 |      |   | December 31, 2010 |   |
|             |   |           |      |   |   |   |
| Raw Materials    |   | $              | 608,582   |   |   | $ | 1,646,217 |   |
| Work-in-progress |   |           | 1,472,381 |   |   |   | 2,261,022 |   |
| Finished goods   |   |           | 3,196,872 |   |   |   | 2,902,461 |   |
|             |   |           |      |   |   |   |   |   |
| Total            |   | $              | 5,277,835 |   |   | $ | 6,809,700 |   |

|                           |      |   | As of          |       |
|--------------------------------|-----------|--------|----------------|------------|
|                           |      |   | March 31, 2011 |       |   | December 31,2010 |   |
|                           |      |   |           |       |   |   |   |
| Buildings                      |      |   | $              | 14,315,492 |   |   | $ | 14,199,056 |   |
| Right to use land              |      |   | 4,165,766      |       |   |   | 4,131,884 |   |
| Machinery and equipment        |      |   | 3,769,404      |       |   |   | 3,731,260 |   |
| Office equipments              |      |   | 374,418        |       |   |   | 356,429 |   |
| Vehicle                        |      |   |           | 558,420    |   |   |   | 553,878 |   |
| Mining                         |      |   |           | 529,738    |   |   |   | 489,012 |   |
| Construction in progress (1)   |      |   | 945,437        |       |   |   | 928,035 |   |
|                           | Sub-total |   |           | 24,658,675 |   |   |   | 24,389,554 |   |
|                           |      |   |           |       |   |   |   |   |   |
| Less: Accumulated depreciation |      |   | (3,577,100     | )          |   |   | (3,307,849 | ) |
|                           | Total     |   | $              | 21,081,575 |   |   | $ | 21,081,705 |   |

----

|                   |   | As of          |   |
|------------------------|--------|----------------|--------|
|                   |   | March 31, 2011 |   |   | December 31, 2010 |   |
|                   |   |           |   |   |   |   |
| Due from Xinju    |   | $              | 0      |   |   | $ | 4,379,411 |   |
| Due from Joint Venture |   |           | 0      |   |   |   | 1,064 |   |
| Due from shareholder   |   |           | 2,901  |   |   |   | 32,154 |   |
|                   |   |           |   |   |   |   |   |   |
| Total                  |   | $              | 2,901  |   |   |   | 4,412,629 |   |

----

|                 |   | As of          |    |
|----------------------|--------|----------------|---------|
|                 |   | March 31, 2011 |    |   | December 31, 2010 |   |
|                 |   |           |    |   |   |   |
| Due to Joint Venture |   | $              | 35,949  |   |   | $ | - |   |
| Due to shareholders  |   |           | 211,221 |   |   |   | 1,814,260 |   |
| Total                |   | $              | 247,170 |   |   | $ | 1,814,260 |   |

|                                                                                                                                                     |   | March 31, 2011 |           |   | March 31, 2010 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|----------------|--------|----------------|--------|
| Statement of operations                                                                                                                                  |   |           |           |   |           |   |
| Revenues                         |   | $              | 2,286.55       |   |           |   | - |   |
| Cost of sales                                                                                |   |           |  1,188.60 |   |           |   | - |   |
| Gross profit                                                                                                                                             |   |           | 1,097.94       |   |           |   | - |   |
| Operating Loss                                                                                                        |   |           | (319,551.50    | )      |           |   | - |   |
| Loss before income tax                                                                                                                    |   |           | (319,551.50    | )      |           |   | - |   |

----

|                   |   |   | As of          |      |
|------------------------|--------|--------|----------------|-----------|
|                   |   |   | March 31, 2011 |      |   | December 31, 2010 |   |
|                   |   |   |           |      |   |   |   |
| Accrued interest       |   |   | $              | 790,131   |   |   | $ | 782,515 |   |
| Salaries and benefits  |   |   |           | 133,462   |   |   |   | 142,180 |   |
| Value Added Taxes      |   |   |           | 376,489   |   |   |   | 11,402 |   |
| Customer Deposit       |   |   |           | 704,177   |   |   |   | 0 |   |
| Other accrued expenses |   |   |           | 208,515   |   |   |   | 162,081 |   |
|                   |   |   |           |      |   |   |   |   |   |
|                   | Total  |   | $              | 2,212,774 |   |   | $ | 1,098,178 |   |
|                   |   |   |           |      |   |   |   |   |   |

----

|                                                                                                                                                                     |   | Balance at |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|-----------|
|                                                                                                                                                                     |   | March 31,  |      |   | December  31, |   |
|                                                                                                                                                                     |   | 2011       |      |   | 2010 |   |
| a) Loan payable to Chengdu Xihang Gang Construction & Investment Co., Ltd                                                                                            |   |       |      |   |
| due on August 31, 2011 without interest, collateralized by certain plant equipment of Sichuan Apollo                                                                     |   | $          | 630,669   |   |   | $ | 625,540 |   |
|                                                                                                                                                                     |   |       |      |   |   |
|                                                                                                                                                                     |   |       |      |   |   |   |   |   |
| b) Loan payable to Bank of Communication, Chengdu branch                                                                                                                 |   |       |      |   |   |   |   |   |
| due on February 8, 2011, with interest at                                                                                                                                |   |       |      |   |   |   | 302,924 |   |
| 6.64% per annum, collateralized by the buildings and land use right of Diye                                                                                              |   |       |      |   |   |   |   |   |
|                                                                                                                                                                     |   |       |      |   |   |   |   |   |
| c) Loan payable to Bank of China, Xihanggang Branch, Chengdu                                                                                                             |   |       |      |   |   |   |   |   |
| due on August 24, 2011, with interest at                                                                                                                                 |   |       | 671,899   |   |   |   | 757,312 |   |
| 5.84% per annum, collateralized by the buildings of Sichuan Apollo                                                                                                       |   |       |      |   |   |   |   |   |
|                                                                                                                                                                     |   |       |      |   |   |   |   |   |
| d) Loan payable to Bank of China, Xihanggang Branch, Chengdu                                                                                                             |   |       |      |   |   |   |   |   |
| due on September 7, 2011, with interest at                                                                                                                               |   |       |      |   |   |   |   |   |
| 5.84% per annum, collateralized by the buildings of Sichuan Apollo                                                                                                       |   |       | 763,522   |   |   |   | 757,312 |   |
|                                                                                                                                                                     |   |       |      |   |   |   |   |   |
| e) Loan payable to Merchant Bank, Wangjiang Road, Chengdu                                                                                                                |   |       |      |   |   |   |   |   |
| due on July 16, 2011, with interest at                                                                                                                                   |   |       |      |   |   |   |   |   |
| 6.97% per annum, collateralized by the buildings of Sichuan Apollo                                                                                                       |   |       | 1,068,931 |   |   |   | 1,060,237 |   |
|                                                                                                                                                                     |   |       |      |   |   |   |   |   |
| f) Loan payable to Bank of China, Xihanggang Branch, Chengdu                                                                                                             |   |       |      |   |   |   |   |   |
| due on January 7, 2012 with interest at                                                                                                                                  |   |       |      |   |   |   |   |   |
| 6.86% per annum, collateralized by the buildings of Sichuan Apollo                                                                                                       |   |       | 1,527,044 |   |   |   |   |   |
|  g) Loan payable to Bank of China, Xihanggang Branch, Chengdudue on March 9, 2011,with interest at 15% per annum, collateralized by the buildings of Sichuan Apollo |   |       |      |   |   |   | 1,499,477 |   |
|                                                                                                                                                                     |   |       |      |   |   |   |   |   |
|  Total                                                                                                                                                              |   | $          | 4,662,065 |   |   | $ | 5,002,802 |   |

----

|                                           |   |           |      |
|------------------------------------------------|--------|----------------|-----------|
|                                           |   | March 31, 2011 |      |   | March 31,2010 |   |
| U.S. statutory rate a 35%                      |   | $              | (6,114    | ) |   | $ | (380,156 | ) |
| Tax rate difference between China and U.S.     |   |           | 130,139   |   |   |   | 108,814 |   |
| Valuation allowance on U.S. Net Operating Loss |   |           | (221,091) |   |   |   | 271,342 |   |
| Effective tax                                  |   | $              | (97,066   | ) |   | $ | - |   |

----

|        |          |   |
|-------------|---------------|--------|
|        | March 31,2011 |   |   | March 31,2010 |   |
| Current     |          | $      | 9,119 |   |   |  $ | - |   |
| Deferred    |          |   | (106,185 | ) |   |   | - |   |
|  Total |          | $      | (97,066 | ) |   |  $ | - |   |

|                          |   |          |           |   |     |   |      |   |   |   | Corporate & |   |   | Consolidated |     |
|-------------------------------|--------|---------------|----------------|--------|----------|--------|-----------|--------|--------|--------|-----------------|--------|--------|--------------|----------|
|                          |   | Manufacturing |           |   | Refining |   |      | Mining |   |   | Others          |   |   | Total        |     |
|                          |   |          |           |   |     |   |      |   |   |   |            |   |   |         |     |
| Revenue                       |   | $             | -              |   |     | $      | 3,783,220 |   |   | $      | -               |   |   | $            | -        |   |   | $ | 3,783,220 |   |
| Operating loss                |   |          |  (204,697 | )      |     |   | (136,741) |   |   |   | (101,690        | )      |   |         | (205,672 | ) |   |   | (648,800 | ) |
| Depreciation and amortization |   |          | 204,386        |   |     |   | 28,770    |   |   |   | 7,859           |   |   |         |     |   |   |   | 241,015 |   |
| Capital expenditures          |   |          | 10,517         |   |     |   | 18,533    |   |   |   | 39,755          |   |   |         |     |   |   |   | 68,805 |   |
|                          |   |          |           |   |     |   |      |   |   |   |            |   |   |         |     |   |   |   |   |   |   |

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|                          |   |          |     |   |     |   |      |   |   |   | Corporate & |   |   | Consolidated |     |
|-------------------------------|--------|---------------|----------|--------|----------|--------|-----------|--------|--------|--------|-----------------|--------|--------|--------------|----------|
|                          |   | Manufacturing |     |   | Refining |   |      | Mining |   |   | Others          |   |   | Total        |     |
|                          |   |          |     |   |     |   |      |   |   |   |            |   |   |         |     |
| Revenue                       |   | $             | -        |   |     | $      | 1,073,774 |   |   | $      | -               |   |   | $            | -        |   |   | $ | 1,073,774 |   |
| Operating loss                |   |          | (272,441 | )      |     |   | (248,397) |   |   |   | (42,769         | )      |   |         | (473,462 | ) |   |   | (1,037,069 | ) |
| Depreciation and amortization |   |          | 46,140   |   |     |   | 173,541   |   |   |   | 6,871           |   |   |         |     |   |   |   | 226,552 |   |
| Capital expenditures          |   |          | 19,092   |   |     |   | 1,753     |   |   |   | 18,571          |   |   |         |     |   |   |   | 39,416 |   |
|                          |   |          |     |   |     |   |      |   |   |   |            |   |   |         |     |   |   |   |   |   |   |

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| · | First Option Exclusive Acquiring Agreement, between Sichuan Xinlong Tellurium Industry & Technique Co., Ltd., Sichuan Xinju Mineral Resources Development Co., Ltd., Renyi Hou, our former CEO and Ling Yong, our former CFO, which grants to our wholly-owned subsidiary a first option to purchase the Exploration Business at such time as the purchase becomes advisable, permissible and in our best interest. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Exclusive Sales Agreement , between Sichuan Xinlong Tellurium Industry & Technique Co., Ltd. and Sichuan Xinju Mineral Resources Development Co., Ltd., which grants to our wholly-owned subsidiary the exclusive right to buy all of the output of the Exploration Business. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·       | Business Operation Agreement, between Sichuan Xinlong Tellurium Industry & Technique Co., Ltd., Sichuan Xinju Mineral Resources Development Co., Ltd., Renyi Hou and Ling Yong, which imposes certain restrictions and obligations on the VIE and certain of its shareholders to support the VIE arrangement, including refraining from competing with our business and modifying the business operations of the VIE without the prior consent of our wholly-owned subsidiary.                                                                                                            |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  · |  Exclusive Technical and Consulting Agreement, between Sichuan Xinlong Tellurium Industry & Technique Co., Ltd. and Sichuan Xinju Mineral Resources Development Co., Ltd., which requires the VIE to provide certain technical and consulting services exclusively to our wholly-owned subsidiary in connection with the Exploration Business.  Our wholly-owned subsidiary agrees to provide up to $6.0 million in investing funding to the VIE in connection with its operation of the Exploration Business, on such terms as the parties shall agree from time to time. |

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|                    |   | Payments due by Period (in $) |
|-------------------------|--------|-------------------------------|
| Contractual Obligations |   | Total                         |   | Less Than 1 Year |   | 1 – 3Years |   | 3 – 5Years |   | More Than5 Years |
| Short term debt         |   | $                             | 4,662,065 |   |   | $ | 4,662,065 |   |   | $ |    — |   | $ | — |   | $  | — |   |
|               |   | $                             | 4,662,065 |   |   | $ | 4,662,065 |   |   | $ |    — |   | $ | — |   | $ | — |   |
|                    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|    |   |          |   |                                                                                                                                                                                   |   |   |   |                      |   |   |   |   |   |   |   |   |
|---------|--------|---------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|---------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|    |   |          |   |                                                                                                                                                                                   |   |   |   | Incorporated by Reference |
| Exhibit |   |          |   | Filed                                                                                                                                                                                  |   |   |   | Exhibit                   |   | File   |   | Filing |
| No      |   | Exhibit Title |   | Herewith                                                                                                                                                                               |   | Form   |   | No.                       |   | No.    |   | Date   |
|    | 31.1   |          |   | Certification of Chief Executive Officer pursuant to Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                |   | X      |   |                      |   |   |   |   |   |   |   |   |
|    |   |          |   |                                                                                                                                                                                   |   |   |   |                      |   |   |   |   |   |   |   |   |
|    | 31.2   |          |   | Certification of Chief Financial Officer pursuant to Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                |   | X      |   |                      |   |   |   |   |   |   |   |   |
|    |   |          |   |                                                                                                                                                                                   |   |   |   |                      |   |   |   |   |   |   |   |   |
|    | 32.1   |          |   | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |   | X      |   |                      |   |   |   |   |   |   |   |   |

|   |   |                                                      |
|--------|--------|-----------------------------------------------------------|
| *      |   | Management contract, or compensatory plan or arrangement. |

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|                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                              |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                 |   |   Apollo Solar Energy, Inc.                                                                                                  |   |   |
|  Date: May 16, 2011                                                           |   |  By:  /s/ Jingong Pan                                  |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                 |   |  Jingong Pan                                                                                                                 |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                 |   |    Chief Executive Officer                                                                                              |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                              |   |   |
|  Date: May 16, 2011                                                                                                                                                                                                                                                                                                                                                   |   |  By:  /s/ Wilson W. Liu                 |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                 |   |  Wilson W. Liu                                                                                                               |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                 |   |  Chief Financial Officer                                                                                                     |   |   |

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