| x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------|

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

| Colorado                                                                                     |   | 84-1536518                        |
|----------------------------------------------------------------------------------------------|--------|-----------------------------------|
| (State or other jurisdiction ofincorporation or organization)                                |   | (IRS Employer Identification No.) |
|  No. 30 Guanghau Avenue, Wan Bailin District, Taiyuan City, Shanxi Province,China  |   | 030024                            |
| (Address of principal executive offices)                                                     |   | (Zip Code)                        |

| Securities registered under Section 12(b) of the Exchange Act: |
|----------------------------------------------------------------|
|                                                           |
| Common Stock, No Par ValueCommon Stock,                   |
|                                                           |
| Title of each class registered:                                |   | Name of each exchange on which registered: |
| None                                                           |   | None |
|                                                           |
| Securities registered under Section 12(g) of the Exchange Act: |
|                                                           |

----

| Large accelerated filer                                            | o      |   | Accelerated filer         | o      |
|--------------------------------------------------------------------|--------|--------|---------------------------|--------|
|                                                               |   |   |                      |   |
| Non-accelerated filer(Do not check if a smaller reporting company) | o      |   | Smaller reporting company | x      |

----

|     |   |                                                                                                                                                           |   | PAGE      |
|----------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|
|     |   | PART I                                                                                                                                                         |   |      |
| ITEM 1.  |   | Condensed Consolidated Financial Statements                                                                                                                    |   | F-1       |
|     |   | Condensed Consolidated Balance Sheets as of March 31, 2010 (Unaudited) and June 30, 2009                                                                       |   | F-1       |
|     |   | Unaudited Condensed Consolidated Statements of Operations and Other Comprehensive Income for the Nine and Three Months Ended March 31, 2010 and March 31, 2009 |   | F-2       |
|     |   | Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 2010 and March 31, 2009                                          |   | F-3       |
|     |   | Notes to the Unaudited Condensed Consolidated Financial Statements                                                                                             |   | F-4       |
| ITEM 2.  |   | Management’s Discussion and Analysis or Plan of Operation                                                                                                |   | 18        |
| ITEM 3.  |   | Quantitative and Qualitative Disclosures About Market Risk                                                                                                     |   | 24        |
| ITEM 4.  |   | Controls and Procedures                                                                                                                                        |   | 24        |
|     |   |                                                                                                                                                           |   |      |
|     |   | PART II                                                                                                                                                        |   |      |
| ITEM 1.  |   | Legal Proceedings                                                                                                                                              |   | 25        |
| ITEM 1A. |   | Risk Factors                                                                                                                                                   |   | 25        |
| ITEM 2.  |   | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                    |   | 25        |
| ITEM 3.  |   | Defaults Upon Senior Securities                                                                                                                                |   | 25        |
| ITEM 4.  |   | Removed and Reserved                                                                                                                                           |   | 25        |
| ITEM 5.  |   | Other Information                                                                                                                                              |   | 26        |
| ITEM 6   |   | Exhibits                                                                                                                                                       |   | 26        |
|     |   |                                                                                                                                                           |   |      |
|     |   | SIGNATURES                                                                                                                                                     |   |   27 |

----

|                                                                                                                                                                                                                                                                                                               | March 31, 2010               |   | June 30,2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|--------|--------------|--------|
| Assets                                                                                                                                                                                                                                                                                                             | (In Thousands,          |   |
| Current Assets                                                                                                                                                                                                                                                                                                     | Except Share Data) |   |
|                                                                                                                                                                                                                                                                                                               | (Unaudited)                  |   |         |   |
|                                                                                                                                                                                                                                                                                                               |                         |   |         |   |   |   |
|    Cash                                                                                                                                                                                                                                                                                             |                         | $      | 11,992       |   |   | $ | 7,308 |   |
|    Accounts Receivable, Net of Allowance for Doubtful Accounts of $0 as of March 31, 2010 and $0 as of June 30, 2009                                                                                                                                                                                |                         |   | 24,925       |   |   |   | 26,796 |   |
|    Inventories                                                                                                                                                                                                                                                                                      |                         |   | 28,852       |   |   |   | 13,976 |   |
|    Advances to Suppliers                                                                                                                                                                                                                                                                            |                         |   | 58,642       |   |   |   | 35,317 |   |
|                                                                                                                                                                                                                                                                                                               |                         |   |         |   |   |   |   |   |
| Total Current Assets                                                                                                                                                                                                                                                                                               |                         |   | 124,411      |   |   |   | 83,397 |   |
|            Property, Plant and Equipment, Net                                                                                                                                                                                                               |                         |   | 44,168       |   |   |   | 36,745 |   |
|                                                                                                                                                                                                                                                                                                               |                         |   |         |   |   |   |   |   |
| Total Assets                                                                                                                                                                                                                                                                                                       |                         | $      | 168,579      |   |   | $ | 120,142 |   |
|                                                                                                                                                                                                                                                                                                               |                         |   |         |   |   |   |   |   |
| Liabilities and Shareholders' Equity                                                                                                                                                                                                                                                                               |                         |   |         |   |   |   |   |   |
| Current Liabilities:                                                                                                                                                                                                                                                                                               |                         |   |         |   |   |   |   |   |
|    Accounts Payable                                                                                                                                                                                                                                                                                 |                         | $      | 1,805        |   |   | $ | 2,275 |   |
|    Convertible Notes Payable                                                                                                                                                                                                                                                                        |                         |   | -            |   |   |   | 800 |   |
|    Warrant Derivative Liability                                                                                                                                                                                                                                                                     |                         |   | 20,149       |   |   |   | - |   |
|    Taxes Payable                                                                                                                                                                                                                                                                                    |                         |   | 5,770        |   |   |   | 2,144 |   |
|                                                                                                                                                                                                                                                                                                               |                         |   |         |   |   |   |   |   |
| Total Current Liabilities                                                                                                                                                                                                                                                                                          |                         |   | 27,724       |   |   |   | 5,219 |   |
|                                                                                                                                                                                                                                                                                                               |                         |   |         |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                               |                         |   |         |   |   |   |   |   |
|                         Total Liabilities                                                                                                                                                  |                         |   | 27,724       |   |   |   | 5,219 |   |
|                                                                                                                                                                                                                                                                                                               |                         |   |         |   |   |   |   |   |
| Commitments and Contingencies                                                                                                                                                                                                                                                                                      |                         |   |         |   |   |   |   |   |
| Shareholders' Equity:                                                                                                                                                                                                                                                                                              |                         |   |         |   |   |   |   |   |
|    Preferred Stock, No Par Value, 86,000,000 Shares Authorized, 0 Issued and Outstanding as of March 31, 2010 and June 30, 2009                                                                                                                                                                     |                         |   | -            |   |   |   | - |   |
|    Series A Convertible Preferred Stock, No Par Value, 14,000,000 Shares Authorized, 11,092,925 and 0 Issued and Outstanding as of March 31, 2010         and June 30, 2009 (Liquidation Preference of $12,202,218 as of March 31, 2010)                         |                         |   | 5,075        |   |   |   | - |   |
|    Common Stock, No Par Value; 500,000,000 Shares Authorized; 87,552,711 and        81,852,831 Issued and Outstanding, 13,499,274 Shares Held in     Escrow Subject to Contingent Future Events, as of March 31, 2010 and June 30, 2009 |                         |   | 17,420       |   |   |   | 11,949 |   |
| Shares to be Issued                                                                                                                                                                                                                                                                                                |                         |   | -            |   |   |   | 126 |   |
| Stock Subscription Receivable                                                                                                                                                                                                                                                                                      |                         |   | -            |   |   |   | (76 | ) |
| Deferred Stock Based Compensation                                                                                                                                                                                                                                                                                  |                         |   | (80          | )      |   |   | (25 | ) |
| Additional Paid-in Capital                                                                                                                                                                                                                                                                                         |                         |   | 8,644        |   |   |   | 2,540 |   |
| Retained Earnings                                                                                                                                                                                                                                                                                                  |                         |   | 99,748       |   |   |   | 90,519 |   |
| Other Comprehensive Income                                                                                                                                                                                                                                                                                         |                         |   | 10,048       |   |   |   | 9,890 |   |
|                                                                                                                                                                                                                                                                                                               |                         |   |         |   |   |   |   |   |
| Total Shareholders' Equity                                                                                                                                                                                                                                                                                         |                         |   | 140,855      |   |   |   | 114,923 |   |
|                                                                                                                                                                                                                                                                                                               |                         |   |         |   |   |   |   |   |
| Total Liabilities and Shareholders' Equity                                                                                                                                                                                                                                                                         |                         | $      | 168,579      |   |   | $ | 120,142 |   |
|                                                                                                                                                                                                                                                                                                               |                         |   |         |   |   |   |   |   |

----

|                                                           |   | For the Three Months Ended March 31, |        |   | For the Nine Months Ended March 31, |   |
|----------------------------------------------------------------|--------|---------------------------------------------------------------|-------------|--------|--------------------------------------------------------------|--------|
|                                                           |   | 2010                                                          |        |   | 2009                                                         |   |   | 2010 |   |   | 2009 |   |
|                                                           |   |                                                          |        |   |                                                         |   |
| Net Sales                                                      |   | $                                                             | 96,899      |   |                                                         | $      | 49,720 |   |   | $ | 227,496 |   |   | $ | 147,839 |   |
| Cost of Sales                                                  |   |                                                          | 77,376      |   |                                                         |   | 40,049 |   |   |   | 182,436 |   |   |   | 116,588 |   |
| Gross Profit                                                   |   |                                                          | 19,523      |   |                                                         |   | 9,671 |   |   |   | 45,060 |   |   |   | 31,251 |   |
| General and Administrative Expenses                            |   |                                                          | 1,440       |   |                                                         |   | 709 |   |   |   | 2,847 |   |   |   | 2,919 |   |
| Operating Income                                               |   |                                                          | 18,083      |   |                                                         |   | 8,962 |   |   |   | 42,213 |   |   |   | 28,332 |   |
| Change in Fair Value of Derivatives                            |   |                                                          | (1,207      | )      |                                                         |   | - |   |   |   | (15,483 | ) |   |   | - |   |
| Interest Income                                                |   |                                                          | 5           |   |                                                         |   | 4 |   |   |   | 14 |   |   |   | 12 |   |
| Interest Expense                                               |   |                                                          | -           |   |                                                         |   | (49 | ) |   |   | (53 | ) |   |   | (173 | ) |
| Income Before Income Tax Expense                               |   |                                                          | 16,881      |   |                                                         |   | 8,917 |   |   |   | 26,691 |   |   |   | 28,171 |   |
| Income Tax Expense                                             |   |                                                          | (4,784      | )      |                                                         |   | (2,255 | ) |   |   | (10,964 | ) |   |   | (7,259 | ) |
| Net Income                                                     |   |                                                          | 12,097      |   |                                                         |   | 6,662 |   |   |   | 15,727 |   |   |   | 20,912 |   |
| Foreign Currency Translation                                   |   |                                                          | 25          |   |                                                         |   | (150 | ) |   |   | 158 |   |   |   | 484 |   |
| Comprehensive Income                                           |   | $                                                             | 12,122      |   |                                                         | $      | 6,512 |   |   | $ | 15,885 |   |   | $ | 21,396 |   |
|                                                           |   |                                                          |        |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                     |   | $                                                             | 12,097      |   |                                                         | $      | 6,662 |   |   | $ | 15,727 |   |   | $ | 20,912 |   |
| Preferred Stock Dividends Paid in Cash                         |   |                                                          | (209        | )      |                                                         |   | - |   |   |   | (365 | ) |   |   | - |   |
| Preferred Stock Deemed Dividends                               |   |                                                          | -           |   |                                                         |   | - |   |   |   | (8,644 | ) |   |   | - |   |
| Net Income Attributable to Common Shareholders                 |   |                                                          | 11,888      |   |                                                         | $      | 6,662 |   |   |   | 6,718 |   |   | $ | 20,912 |   |
|                                                           |   |                                                          |        |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Earnings Per Common Share Attributable to Common Shareholders: |   |                                                          |        |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                          |   | $                                                             | 0.14        |   |                                                         | $      | 0.09 |   |   | $ | 0.08 |   |   | $ | 0.27 |   |
| Diluted                                                        |   | $                                                             | 0.10        |   |                                                         | $      | 0.08 |   |   | $ | 0.07 |   |   | $ | 0.26 |   |
| Weighted Average Common Shares Outstanding:                    |   |                                                          |        |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                          |   |                                                          | 86,160,133  |   |                                                         |   | 76,213,333 |   |   |   | 84,262,503 |   |   |   | 76,207,737 |   |
| Diluted                                                        |   |                                                          | 113,828,075 |   |                                                         |   | 81,895,661 |   |   |   | 102,166,908 |   |   |   | 81,408,798 |   |

----

|                                                                                                          | For the Nine Months EndedMarch 31, |                |
|---------------------------------------------------------------------------------------------------------------|------------------------------------|---------------------|
|                                                                                                          | 2010                               |                | 2009 |   |
|                                                                                                          |                               | (In Thousands) |   |
| Cash Flows From Operating Activities:                                                                         |                               |                |   |   |   |   |
| Net Income                                                                                                    |                               | $                   | 15,727 |   |   | $ | 20,912 |   |
|                                                                                                          |                               |                |   |   |   |   |   |   |
| Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities—                       |                               |                |   |   |   |   |   |   |
| Depreciation and Amortization                                                                                 |                               |                | 231 |   |   |   | 289 |   |
| Stock Based Compensation                                                                                      |                               |                | 316 |   |   |   | - |   |
| Change in Fair Value of Derivatives                                                                           |                               |                | 15,483 |   |   |   | - |   |
| Accretion of Debt Discount                                                                                    |                               |                | - |   |   |   | 637 |   |
| (Increase) Decrease in Assets—                                                                          |                               |                |   |   |   |   |   |   |
| Accounts Receivable                                                                                           |                               |                | 1,871 |   |   |   | (1,777 | ) |
| Inventories                                                                                                   |                               |                | (14,876 | )  |   |   | 14,791 |   |
| Advances to Suppliers                                                                                         |                               |                | (23,325 | )  |   |   | (8,650 | )  |
| Increase (Decrease) in Liabilities—                                                                     |                               |                |   |   |   |   |   |   |
| Accounts Payable                                                                                              |                               |                | (769 | ) |   |   | (417 | )  |
| Taxes Payable                                                                                                 |                               |                | 3,626 |   |   |   | 950 |   |
| Other Current Liabilities                                                                                     |                               |                | - |   |   |   | 21 |   |
|                                                                                                          |                               |                |   |   |   |   |   |   |
| Net Cash (Used in) Provided By Operating activities                                                           |                               |                | (1,716 | )  |   |   | 26,756 |   |
|                                                                                                          |                               |                |   |   |   |   |   |   |
| Cash Flows From Investing Activities:                                                                         |                               |                |   |   |   |   |   |   |
| Property Improvements                                                                                         |                               |                | (7,654 | ) |   |   | (25,844 | ) |
|                                                                                                          |                               |                |   |   |   |   |   |   |
| Net Cash Used in Investing Activities                                                                         |                               |                | (7,654 | ) |   |   | (25,844 | ) |
|                                                                                                          |                               |                |   |   |   |   |   |   |
| Cash Flows From Financing Activities:                                                                         |                               |                |   |   |   |   |   |   |
| Net Proceeds From Issuance of Series A Convertible Preferred Stock                                            |                               |                | 13,820 |   |   |   | - |   |
| Net Proceeds From Issuance of Common Stock                                                                    |                               |                | 76 |   |   |   | - |   |
|                                                                                                          |                               |                |   |   |   |   |   |   |
| Net Cash Provided By Financing activities                                                                     |                               |                | 13,896 |   |   |   | - |   |
|                                                                                                          |                               |                |   |   |   |   |   |   |
| Effect of Exchange Rate Changes in Cash                                                                       |                               |                | 158 |   |   |   | 73 |   |
| Increase in Cash                                                                                              |                               |                | 4,684 |   |   |   | 985 |   |
| Cash, Beginning of Period                                                                                     |                               |                | 7,308 |   |   |   | 8,633 |   |
|                                                                                                          |                               |                |   |   |   |   |   |   |
| Cash, End of Period                                                                                           |                               | $                   | 11,992 |   |   | $ | 9,618 |   |
|                                                                                                          |                               |                |   |   |   |   |   |   |
| Supplemental Cash Flow Information:                                                                           |                               |                |   |   |   |   |   |   |
| Cash Paid During the Period for                                                                               |                               |                |   |   |   |   |   |   |
| Interest                                                                                                      |                               | $                   | - |   |   | $ | - |   |
| Income Taxes                                                                                                  |                               | $                   | 7,338 |   |   | $ | 6,752 |   |
| Supplemental Schedule of Noncash Investing and Financing activities:                                          |                               |                |   |   |   |   |   |   |
| Common Stock Issued for Services, Deferred Compensation                                                       |                               | $                   | 370 |   |   | $ | - |   |
| Increase to Warrant Derivative Liability for Fair Value of Stock Warrants Prior to Conversion to Common Stock |                               | $                   | 4,218 |   |   | $ | - |   |
| Increase to Common Stock, Par, for Conversion of Debt                                                         |                               | $                   | 867 |   |   | $ | - |   |
| Increase to Common Stock, Par, for Common Stock Compensation Related to October 2009 Financing                |                               | $                   | 317 |   |   | $ | - |   |
| Initial Fair Value Allocation of Investor Stock Warrants, to Warrant Derivative Liability                     |                               | $                   | 6,205 |   |   | $ | - |   |
| Initial Fair Value Allocation of Placement Agent Warrants, to Warrant Derivative Liability                    |                               | $                   | 1,122 |   |   | $ | - |   |
| Increase to Additional Paid in Capital, for Beneficial Conversion Feature                                     |                               | $                   | 8,644 |   |   | $ | - |   |
| Increase to Warrant Derivative Liability for Cumulative Effect of Accounting Change                           |                               | $                   | 1,557 |   |   | $ | - |   |

----

|  Subsidiaries                            | State and Countries Registered In | Percentage ofOwnership |
|-----------------------------------------------|---------------------------------------------|-----------------------------|
| Longwei Petroleum Investment Holding Limited  | British Virgin Islands                      |                        | 100.00 | % |
| Taiyuan Yahua Energy Conversion Ltd.          | People’s Republic of China            |                        | 100.00 | % |
| Taiyuan Longwei Economy & Trading Ltd.    | People’s Republic of China            |                        | 100.00 | % |
| Shanxi Heitan Zhingyou Petrochemical Co., Ltd | People’s Republic of China            |                        | 100.00 | % (a) |

| (a) | A total of 95% of the ownership units are held by the Company. The remaining 5% of the ownership units are held in trust by an individual who is also an employee of the Company. This ownership structure is organized as such due to PRC business ownership laws. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                  | March 31,2010(000’s) |   | June 30,2009(000’s) |   |
|---------------------------------------|----------------------------|--------|---------------------------|--------|
|                                  |                       |   |                      |   |
| Trade Accounts Receivable             | $                          | 24,925 |                      |   | $ | 26,796 |   |
| Less: Allowance for Doubtful Accounts | -                          |   |                      | -      |   |
| Totals                                | $                          | 24,925 |                      |   | $ | 26,796 |   |

----

|       |   | March 31,2010(000’s) |   |   | June 30,2009(000’s) |    |
|------------|--------|----------------------------|--------|--------|---------------------------|---------|
|       |   |                       |   |   |                      |    |
| Diesel Oil |   |  $                    | 17,253 |   |                      |  $ | 7,951 |   |
| Gasoline   |   |                       | 9,166  |   |                      |    | 6,025 |   |
| Fuel Oil   |   |                       | 1,394  |   |                      |    | - |   |
| Solvent    |   |                       | 1,039  |   |                      |    | - |   |
| Total      |   | $                          | 28,852 |   |                      | $       | 13,976 |   |

|                  |   | March 31,2010(000’s) |   |   | June 30,2009(000’s) |    |
|-----------------------|--------|----------------------------|--------|--------|---------------------------|---------|
|                  |   |                       |   |   |                      |    |
| Advances to Suppliers |   |  $                    | 58,642 |   |                      |  $ | 35,317 |   |
| Other                 |   |                       | -      |   |                      |    | - |   |
| Total                 |   | $                          | 58,642 |   |                      | $       | 35,317 |   |

|                                |   | March 31,2010(000’s) |   |   | June 30,2009(000’s) |    |
|-------------------------------------|--------|----------------------------|--------|--------|---------------------------|---------|
|                                |   |                       |   |   |                      |    |
| Land and Buildings                  |   |  $                    | 44,213 |   |                      |  $ | 36,561 |   |
| Machinery and Production Equipment  |   |                       | 2,803  |   |                      |    | 2,799 |   |
| Railway                             |   |                       | 1,442  |   |                      |    | 1,440 |   |
| Motor Vehicles                      |   |                       | 216    |   |                      |    | 215 |   |
| Total Property, Plant and Equipment |   |                       | 48,674 |   |                      |    | 41,015 |   |
| Accumulated Depreciation            |   |                       | (4,506 | )      |                      |    | (4,270 | ) |
| Total                               |   | $                          | 44,168 |   |                      | $       | 36,745 |   |

----

|                   |   |   | (000’s) |   |
|------------------------|--------|--------|---------------|--------|
|                   |   |   |          |   |
| Land and Buildings     |   | $      | 29,966        |   |
| Net Assets Acquired    |   | $      | 29,966        |   |
|                   |   |   |          |   |
| Purchase Consideration |   | $      | 29,966        |   |

|                              |   | March 31,2010(000’s) |   |   | June 30,2009(000’s) |    |
|-----------------------------------|--------|----------------------------|--------|--------|---------------------------|---------|
|                              |   |                       |   |   |                      |    |
| Income Tax Payable                |   |  $                    | 4,823  |   |                      |  $ | 960 |   |
| Value Added Tax Payable           |   |                       | 838    |   |                      |    | 733 |   |
| Business Taxes and Other Payables |   |                       | 109    |   |                      |    | 451 |   |
| Total                             |   | $                          | 5,770  |   |                      | $       | 2,144 |   |

| 1.   | The maturity date of the Convertible Debt was extended to September 18, 2009 |
|----------------|------------------------------------------------------------------------------|

| 2.   | The interest rate on the Convertible Debt was retroactively adjusted to approximately 8% for the period from December 17, 2007 through December 18, 2008 and $168 thousand in interest was payable to the Holders immediately |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | The exercise price of the Class A Common Stock Purchase Warrants was lowered from $0.80 to $0.70 |
|----------------|--------------------------------------------------------------------------------------------------|

| 4.   | The exercise period of the Class A Common Stock Purchase Warrants was extended from December 10, 2010 to December 10, 2012 |
|----------------|----------------------------------------------------------------------------------------------------------------------------|

| 5.   | The Company agreed to issue an additional 1,200,000 warrants (the “Class B Common Stock Purchase Warrants”) to the Holders.  The Class B Common Stock Purchase Warrants had an exercise price of $0.70 and could be exercised at any time until February 2, 2014. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | If the Convertible Debt is not repaid upon the maturity date, September 18, 2009, the interest rate on the Convertible Debt would increase to a 10% annualized rate |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Level 1 inputs — quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 2 inputs — inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs include: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3 inputs — unobservable inputs for the asset or liability. Unobservable inputs may be used to measure fair value only when observable inputs are not available. Unobservable inputs reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability in achieving the fair value measurement objective of an exit price perspective. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          |   |                   |   |   |             |   |    |              |   |   |             |   |   |   |    |   |
|-----------------------------------------------|--------|------------------------|--------|--------|------------------|--------|---------|-------------------|--------|--------|------------------|--------|--------|--------|---------|--------|
|                                          |   | Total Carrying         |   |   | Quoted Prices in |   |    | Significant Other |   |   | Significant      |   |
|                                          |   | Value at March 31,     |   |   | Active Markets   |   |    | Observable Inputs |   |   | Unobservable     |   |
|                                          |   | 2010                   |   |   | (Level 1)        |   |    | (Level 2)         |   |   | Inputs (Level 3) |   |
|                                          |   | (Dollars in Thousands) |   |
| Derivative Liabilities – Stock Warrants |   | $                      | 20,149 |   |             | $      | — |              |   | $      | 20,149           |   |   | $      | — |   |

|                                          |   |                   |    |   |             |   |    |              |   |   |             |   |   |   |    |   |
|-----------------------------------------------|--------|------------------------|---------|--------|------------------|--------|---------|-------------------|--------|--------|------------------|--------|--------|--------|---------|--------|
|                                          |   | Total Carrying         |    |   | Quoted Prices in |   |    | Significant Other |   |   | Significant      |   |
|                                          |   | Value at June 30,      |    |   | Active Markets   |   |    | Observable Inputs |   |   | Unobservable     |   |
|                                          |   | 2009                   |    |   | (Level 1)        |   |    | (Level 2)         |   |   | Inputs (Level 3) |   |
|                                          |   | (Dollars in Thousands) |    |
| Derivative Liabilities – Stock Warrants |   | $                 | — |   |             | $      | — |              |   | $      | —          |   |   | $      | — |   |

----

|                     |   | October 2009 Financing Warrants - Valuation Inputs |   |
|--------------------------|--------|----------------------------------------------------|--------|
|   Attribute         |   | March 31,2010                                      |   |   | December 31,2009 |   |   | October 29,2009 |   |
| Stock Price              |   | $                                                  | 2.58   |   |   | $ | 2.70 |   |   | $ | 2.05 |   |
| Risk Free Interest Rate  |   |                                               | 1.62   | % |   |   | 1.49 | % |   |   | 1.50 | % |
| Volatility               |   |                                               | 81.04  | % |   |   | 63.90 | % |   |   | 63.90 | % |
| Exercise Price           |   | $                                                  | 2.255  |   |   | $ | 2.255 |   |   | $ | 2.255 |   |
| Dividend Yield           |   |                                               | 0      | % |   |   | 0 | % |   |   | 0 | % |
| Contractual Life (Years) |   |                                               | 2.62   |   |   |   | 2.77 |   |   |   | 3 |   |

----

|                        |   | As ofMarch 31,2010(000’s) |   |   | As ofDecember 31, 2009(000’s) |   |   | As ofOctober 29,2009(000’s) |   |   | Changes inFair Value(000’s) |   |
|-----------------------------|--------|---------------------------------|--------|--------|-------------------------------------|--------|--------|-----------------------------------|--------|--------|-----------------------------------|--------|
|                        |   |                            |   |   |                                |   |   |                              |   |   |                              |   |
| Fair Value of the Warrants: |   |                            |   |   |                                |   |   |                              |   |   |                              |   |
| Investor Warrants           |   | $                               | 18,317 |   |                                | $      | 17,177 |                              |   | $      | 6,205                             |   |   | $ | 12,112 |   |
| Placement Agent Warrants    |   |                            | 1,832  |   |                                |   | 1,718  |                              |   |   | 1,122                             |   |   |   | 710 |   |
|                        |   | $                               | 20,149 |   |                                | $      | 18,895 |                              |   | $      | 7,327                             |   |   | $ | 12,822 |   |

----

----

|                     |   | Gross proceeds Allocated(000’s) |   |   | Number of Instruments |   |       | Allocated Value per Instrument(000’s) |   |
|--------------------------|--------|---------------------------------------|--------|--------|-----------------------|--------|------------|---------------------------------------------|--------|
|                     |   |                                  |   |   |                  |   |       |                                        |   |
| Investor Warrants        |   | $                                     | 6,205  |   |                  |   | 13,499,274 |                                        |   | $ | 0.4597 |   |
| Series A Preferred Stock |   |                                  | 8,644  |   |                  |   | 13,499,274 |                                        |   | $ | 0.6403 |   |
| Total                    |   | $                                     | 14,849 |   |                  |   |       |                                        |   |   |   |   |

|                                                                                                                              |   | Par Value(000’s) |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                                                              |   |                   |   |
| Series A Preferred Stock, Balance as of July 1, 2009                                                                              |   |  $                | -      |   |
| Proceeds allocated to Series A Preferred Stock as of October 29, 2009                                                             |   |                   | 8,644  |   |
| Allocation of Proceeds to Beneficial Conversion Feature                                                                           |   |                   | (8,644 | ) |
| Amortization of Beneficial Conversion Feature Deemed Analogous to a Dividend on the Series A Preferred Stock                      |   |                   | 8,644  |   |
| Deduction of Issuance Costs Incurred in October 2009 Financing Paid in Cash                                                       |   |                   | (1,029 | )  |
| Deduction of Initial Fair Value of the Placement Agent Warrants and Common Stock Issued in Connection with October 2009 Financing |   |                   | (1,439 | ) |
| Conversion of Preferred Stock on a 1 for 1 Basis to Common Stock                                                                  |   |                   | (1,101 | )  |
| Series A Preferred Stock, Balance as of March 31, 2010                                                                            |   | $                      | 5,075  |   |

----

|                        |   | As ofMarch 31,2010(000’s) |   |   | As ofJune 30,2009(000’s) |   |   | Changes inFair Value *(000’s) |   |
|-----------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|--------|-------------------------------------|--------|
| Fair Value of the Warrants: |   |                            |   |   |                           |   |   |                                |   |
| Class A Warrants            |   | $                               | -      |   |                           | $      | 825    |                                |   | $ | 2,154 |   |
| Class B Warrants            |   |                            | -      |   |                           |   | 732    |                                |   |   | 2,064 |   |
|                        |   | $                               | -      |   |                           | $      | 1,557  |                                |   | $ | 4,218 |   |

| Class A Stock Warrant - Valuation Inputs |
|------------------------------------------|
| Attribute                                |   | September 30,2009 |   | July 1,2009 |   | February 9,2009 |   | December 17,2007 |
| Stock Price                              |   | $1.47 |   | $0.99 |   | $0.45 |   | $1.50 |
| Risk Free Interest Rate                  |   | 1.43% |   | 1.72% |   | 1.38% |   | 3.49% |
| Volatility                               |   | 63.93% |   | 63.93% |   | 149.18% |   | 70.37% |
| Exercise Price                           |   | $0.70 |   | $0.70 |   | $0.70 |   | $0.70 |
| Dividend Yield                           |   | 0% |   | 0% |   | 0% |   | 0% |
| Contractual Life (Years)                 |   | 3.22 |   | 3.47 |   | 3.86 |   | 5.00 |

| Class B Stock Warrant - Valuation Inputs |
|------------------------------------------|
| Attribute                                |   | December 31,2009 |   | September 30,2009 |   | June 30,2009 |   | February 9,2009 |
| Stock Price                              |   | $2.70 |   | $1.47 |   | $0.99 |   | $0.45 |
| Risk Free Interest Rate                  |   | 2.50% |   | 2.41% |   | 2.66% |   | 1.88% |
| Volatility                               |   | 63.9% |   | 63.93% |   | 63.93% |   | 123.37% |
| Exercise Price                           |   | $0.70 |   | $0.70 |   | $0.70 |   | $0.70 |
| Dividend Yield                           |   | 0% |   | 0% |   | 0% |   | 0% |
| Contractual Life (Years)                 |   | 4.11 |   | 4.36 |   | 4.62 |   | 5.86 |

----

|                               |   | Stock Warrants |       |    | Weighted Average Exercise Price |   |
|------------------------------------|--------|----------------|------------|---------|---------------------------------|--------|
| Exercisable – June 30, 2008  |   |           | 1,500,000  |    |                            | $      |  - |   |
| Granted (Class B Warrants)         |   |           | 1,200,000  |    |                            | $      | 0.70 |   |
| Exercised                          |   |           | -          |    |                            | $      | - |   |
| Forfeited/Cancelled                |   |           | -          |    |                            | $      |  - |   |
| Outstanding – June 30, 2009  |   |           | 2,700,000  |    |                            | $      | 0.70 |   |
| Exercisable – June 30, 2009  |   |           | -          |    |                            | $      | 0.70 |   |
| Granted                            |   |           | 14,849,201 |    |                            | $      | 2.255 |   |
| Exercised                          |   |           | (2,700,000 | )  |                            | $      | 0.70 |   |
| Forfeited/Cancelled                |   |           | -          |    |                            | $      | 0.70 |   |
| Outstanding – March 31, 2010 |   |           | 14,849,201 |    |                            | $      | 2.255 |   |
| Exercisable – March 31, 2010 |   |           | 14,849,201 |    |                            | $      | 2.255 |   |

| Warrants Outstanding   |   |   | Warrants Exercisable |   |
|------------------------|--------|--------|----------------------|--------|
| Range ofexercise price |   |   | Number Outstanding   |   | Weighted Average Remaining Contractual Life (in years) |   | Weighted Average Exercise Price |   |   | Number Exercisable |   |   | Weighted Average Exercise Price |   |
| $                      | 2.255  |   |                 |   | 14,849,201 |   | 2.62 years |   | $ | 2.255 |   |   |   | 14,849,201 |   |   | $ | 2.255 |   |

----

----

|                                                                                            |   | For the Nine Months EndedMarch 31, |        |
|-------------------------------------------------------------------------------------------------|--------|------------------------------------|-------------|
|                                                                                            |   | 2010                               |        |   | 2009 |   |
| Numerator — Basic and Diluted:                                                            |   |                               |        |   |   |   |
| Net Income Attributable to Common Shareholders                                                  |   | $                                  | 6,718       |   |   | $ | 20,912 |   |
| Denominator:                                                                                    |   |                               |        |   |   |   |   |   |
| Weighted Average Common Shares Outstanding — Basic                                        |   |                               | 84,262,503  |   |   |   | 76,207,737 |   |
| Add:     Common Stock Underlying Series A Preferred Stock              |   |                               | 7,413,027   |   |   |   | - |   |
| Add:     Common Stock Underlying Investor Stock Warrants               |   |                               | 7,685,718   |   |   |   | - |   |
| Add:     Common Stock Underlying Placement Agent Stock Warrants        |   |                               | 768,572     |   |   |   | - |   |
| Add:     Common Stock Underlying Class A Stock Warrants                |   |                               | 852,078     |   |   |   | 2,142,857 |   |
| Add:     Common Stock Underlying Class B Stock Warrants                |   |                               | 842,471     |   |   |   | 58,204 |   |
| Add:     Common Stock Underlying Convertible Debt                      |   |                               | 342,539     |   |   |   | 3,000,000 |   |
|     Less:     Anti-Dilutive Shares Included Herein |   |                               | -           |   |   |   | - |   |
| Weighted Average Common Shares Outstanding — Diluted                                      |   |                               | 102,166,908 |   |   |   | 81,408,798 |   |
| Basic Earnings Per Common Share:                                                                |   |                               |        |   |   |   |   |   |
| Net Income — Basic                                                                        |   | $                                  | 0.08        |   |   | $ | 0.27 |   |
| Diluted Earnings Per Common Share:                                                              |   |                               |        |   |   |   |   |   |
| Net Income — Diluted                                                                      |   | $                                  | 0.07        |   |   | $ | 0.26 |   |

|                                                                                            |   | For the Three Months EndedMarch 31, |        |
|-------------------------------------------------------------------------------------------------|--------|-------------------------------------|-------------|
|                                                                                            |   | 2010                                |        |   | 2009 |   |
| Numerator — Basic and Diluted:                                                            |   |                                |        |   |   |   |
| Net Income Attributable to Common Shareholders                                                  |   | $                                   | 11,887      |   |   | $ | 6,662 |   |
| Denominator:                                                                                    |   |                                |        |   |   |   |   |   |
| Weighted Average Common Shares Outstanding — Basic                                        |   |                                | 86,160,133  |   |   |   | 76,213,333 |   |
| Add:     Common Stock Underlying Series A Preferred Stock              |   |                                | 12,669,081  |   |   |   | - |   |
| Add:     Common Stock Underlying Investor Stock Warrants               |   |                                | 13,499,274  |   |   |   | - |   |
| Add:     Common Stock Underlying Placement Agent Stock Warrants        |   |                                | 1,349,927   |   |   |   | - |   |
| Add:     Common Stock Underlying Class A Stock Warrants                |   |                                | -           |   |   |   | 2,142,857 |   |
| Add:     Common Stock Underlying Class B Stock Warrants                |   |                                | 149,660     |   |   |   | 539,471 |   |
| Add:     Common Stock Underlying Convertible Debt                      |   |                                | -           |   |   |   | 3,000,000 |   |
|     Less:     Anti-Dilutive Shares Included Herein |   |                                | -           |   |   |   | - |   |
| Weighted Average Common Shares Outstanding — Diluted                                      |   |                                | 113,828,075 |   |   |   | 81,895,661 |   |
| Basic Earnings Per Common Share:                                                                |   |                                |        |   |   |   |   |   |
| Net Income — Basic                                                                        |   | $                                   | 0.14        |   |   | $ | 0.09 |   |
| Diluted Earnings Per Common Share:                                                              |   |                                |        |   |   |   |   |   |
| Net Income — Diluted                                                                      |   | $                                   | 0.10        |   |   | $ | 0.08 |   |

|   | 1.  | Product Sales - The Company purchases and sells diesel, gasoline, fuel oil and kerosene in the PRC. |
|--------|----------|-----------------------------------------------------------------------------------------------------|

|   | 2.  | Agency Sales - The Company acts as an agent in the purchase and sale of products by other gas and oil distributors in the PRC. |
|--------|----------|--------------------------------------------------------------------------------------------------------------------------------|

| Nine Months EndedMarch 31, 2010 |   | Product Sales(000’s) |    |   | Agency Sales(000’s) |   |   | ConsolidatedTotal(000’s) |   |
|---------------------------------|--------|----------------------------|---------|--------|---------------------------|--------|--------|--------------------------------|--------|
| Net Sales                       |   | $                          | 215,527 |   |                      | $      | 11,969 |                           |   | $ | 227,496 |   |
| Cost of Sales                   |   |                       | 182,435 |   |                      |   | -      |                           |   |   | 182,436 |   |
| Segment Operating Income        |   |                       | 30,244  |   |                      |   | 11,969 |                           |   |   | 42,213 |   |
| Segment Assets                  |   |                       | 168,579 |   |                      |   | -      |                           |   |   | 168,579 |   |
| Expenditures for Segment Assets |   |                       | 7,654   |   |                      |   | -      |                           |   |   | 7,654 |   |

----

| Nine Months EndedMarch 31, 2009 |   | Product Sales(000’s) |    |   | Agency Sales(000’s) |   |   | ConsolidatedTotal(000’s) |   |
|---------------------------------|--------|----------------------------|---------|--------|---------------------------|--------|--------|--------------------------------|--------|
| Net Sales                       |   | $                          | 139,309 |   |                      | $      | 8,530  |                           |   | $ | 147,839 |   |
| Cost of Sales                   |   |                       | 116,588 |   |                      |   | -      |                           |   |   | 116,588 |   |
| Segment Operating Income        |   |                       | 19,802  |   |                      |   | 8,530  |                           |   |   | 28,332 |   |
| Segment Assets                  |   |                       | 116,185 |   |                      |   | -      |                           |   |   | 116,185 |   |
| Expenditures for Segment Assets |   |                       | 25,844  |   |                      |   | -      |                           |   |   | 25,844 |   |

| Three Months EndedMarch 31, 2010 |   | Product Sales(000’s) |    |   | Agency Sales(000’s) |   |   | ConsolidatedTotal(000’s) |   |
|----------------------------------|--------|----------------------------|---------|--------|---------------------------|--------|--------|--------------------------------|--------|
| Net Sales                        |   | $                          | 91,884  |   |                      | $      | 5,015  |                           |   | $ | 96,899 |   |
| Cost of Sales                    |   |                       | 77,376  |   |                      |   | -      |                           |   |   | 77,376 |   |
| Segment Operating Income         |   |                       | 13,068  |   |                      |   | 5,015  |                           |   |   | 18,083 |   |
| Segment Assets                   |   |                       | 168,579 |   |                      |   | -      |                           |   |   | 168,579 |   |
| Expenditures for Segment Assets  |   |                       | -       |   |                      |   | -      |                           |   |   | - |   |

| Three Months EndedMarch 31, 2009 |   | Product Sales(000’s) |    |   | Agency Sales(000’s) |   |   | ConsolidatedTotal(000’s) |   |
|----------------------------------|--------|----------------------------|---------|--------|---------------------------|--------|--------|--------------------------------|--------|
| Net Sales                        |   | $                          | 46,622  |   |                      | $      | 3,098  |                           |   | $ | 49,720 |   |
| Cost of Sales                    |   |                       | 40,049  |   |                      |   | -      |                           |   |   | 40,049 |   |
| Segment Income                   |   |                       | 5,864   |   |                      |   | 3,098  |                           |   |   | 8,962 |   |
| Segment Assets                   |   |                       | 116,185 |   |                      |   | -      |                           |   |   | 116,185 |   |
| Expenditures for Segment Assets  |   |                       | 23,850  |   |                      |   | -      |                           |   |   | 23,850 |   |

----

| Current Quarterly Reporting Period, Three Months Ended March 31, 2010 Compared to Previous Reporting Period, Three Months Ended December 31, 2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                              |   |   |   |
| Revenues Growth Rate                                                                                                                              |   |   | 36.0 | % |
| Adjusted Net Income Growth Rate *                                                                                                                 |   |   | 37.9 | % |
| Adjusted Basic Earnings per Share Growth Rate **                                                                                                  |   |   | 25.0 | % |
| Unit Price per Metric Ton of Products Sold Growth Rate                                                                                            |   |   | 2.9 | % |

----

|                                                 |   |   |   Three Months Ended March 31, |   |
|------------------------------------------------------|--------|--------|-------------------------------------|--------|
|                                                 |   |   |   2010                         |   |   |   |   2009 |   |
|                                                 |   |   |                                |   |   |   |   |   |
| Revenues Growth Rate                                 |   |   | 94.9%                               |   |   |   | 53.1% |   |
| Adjusted Net Income Growth Rate *                    |   |   | 99.7%                               |   |   |   | 31.6% |   |
| Adjusted Basic Earnings per Share *                  |   | $      | 0.15                                |   |   | $ | 0.09 |   |
| Gross Margin %                                       |   |   | 20.1%                               |   |   |   | 19.5% |   |
| Adjusted Net Margin % *                              |   |   | 13.7%                               |   |   |   | 13.4% |   |
| Gross Margin % - Taiyuan                             |   |   | 20.3%                               |   |   |   | 21.1% |   |
| Gross Margin % - Gujiao                              |   |   | 18.7%                               |   |   |   | N/A |   |
| Agency Revenues - Taiyuan                            |   | $      | 4,075                               |   |   | $ | 3,098 |   |
| Agency Revenues - Gujiao                             |   | $      | 938                                 |   |   | $ | N/A |   |
| Unit Price per Metric Ton of Products Sold - Taiyuan |   | $      | 852                                 |   |   | $ | 771 |   |
| Unit Price per Metric Ton of Products Sold - Gujiao  |   | $      | 860                                 |   |   | $ | N/A |   |

|                                                 |   |   | Nine Months Ended March 31, |   |
|------------------------------------------------------|--------|--------|-----------------------------|--------|
|                                                 |   |   | 2010                        |   |   |   | 2009 |   |
|                                                 |   |   |                        |   |   |   |   |   |
| Revenues Growth Rate                                 |   |   | 53.9%                       |   |   |   | 36.0% |   |
| Adjusted Net Income Growth Rate *                    |   |   | 47.5%                       |   |   |   | 15.3% |   |
| Adjusted Basic Earnings per Share **                 |   | $      | 0.37                        |   |   | $ | 0.27 |   |
| Gross Margin %                                       |   |   | 19.8%                       |   |   |   | 21.1% |   |
| Adjusted Net Margin % *                              |   |   | 13.6%                       |   |   |   | 14.1% |   |
| Gross Margin % - Taiyuan                             |   |   | 18.3%                       |   |   |   | 21.1% |   |
| Gross Margin % - Gujiao                              |   |   | 18.1%                       |   |   |   | N/A |   |
| Agency Revenues – Taiyuan (in ‘000s)     |   | $      | 11,031                      |   |   | $ | 8,530 |   |
| Agency Revenues – Gujiao (in ‘000s)      |   | $      | 938                         |   |   | $ | N/A |   |
| Unit Price per Metric Ton of Products Sold - Taiyuan |   | $      | 815                         |   |   | $ | 743 |   |
| Unit Price per Metric Ton of Products Sold - Gujiao  |   | $      | 858                         |   |   | $ | N/A |   |

----

|                                          |   |   | (In Thousands, Except per Share Data) |   |
|-----------------------------------------------|--------|--------|---------------------------------------|--------|
|                                          |   |   | Three Months Ended March 31,          |   |
|                                          |   |   | 2010                                  |   |   |   | 2009 |   |
|                                          |   |   |                                  |   |   |   |   |   |
| Net Income                                    |   |   | 12,097                                |   |   |   | 6,662 |   |
| Add Back: Change in Fair Value of Derivatives |   |   | 1,207                                 |   |   |   | - |   |
| Adjusted Net Income                           |   |   | 13,304                                |   |   |   | 6,662 |   |

|                                                    |   |   | Nine Months Ended March 31, |   |
|---------------------------------------------------------|--------|--------|-----------------------------|--------|
|                                                    |   |   | 2010                        |   |   |   | 2009 |   |
|                                                    |   |   |                        |   |   |   |   |   |
| Net Income Attributable to Common Shareholders          |   |   | 6,718                       |   |   |   | 20,912 |   |
| Add Back: Deemed Dividends                              |   |   | 8,644                       |   |   |   | - |   |
| Net Income                                              |   |   | 15,362                      |   |   |   | 20,912 |   |
| Add Back: Change in Fair Value of Derivatives           |   |   | 15,483                      |   |   |   | - |   |
| Adjusted Net Income Attributable to Common Shareholders |   |   | 30,845                      |   |   |   | 20,912 |   |

|                                                         |   |   |  (In Thousands, Except per Share Data) |   |
|--------------------------------------------------------------|--------|--------|---------------------------------------------|--------|
|                                                         |   |   | 2010                                        |   |   |   | 2009 |   |
|                                                         |   |   |                                        |   |   |   |   |   |
| Revenues                                                     |   | $      | 96,899                                      |   |   | $ | 49,720 |   |
| Costs of Sales                                               |   |   | 77,376                                      |   |   |   | 40,049 |   |
| Gross Profit                                                 |   |   | 19,523                                      |   |   |   | 9,671 |   |
| Total Operating Expenses                                     |   |   | 1,440                                       |   |   |   | 709 |   |
| Income From Operations                                       |   |   | 18,083                                      |   |   |   | 8,962 |   |
| Other Income and Expenses                                    |   |   | (1,202                                      | )      |   |   | (45 | ) |
| Provision for Income Taxes                                   |   |   | (4,784                                      | )      |   |   | (2,255 | ) |
| Net Income                                                   |   |   | 12,097                                      |   |   |   | 6,662 |   |
| Foreign Currency Translation Adjustment                      |   |   | 25                                          |   |   |   | (150 | ) |
| Comprehensive Income                                         |   | $      | 12,122                                      |   |   | $ | 6,512 |   |
| Basic Income Attributable to Common Shareholders Per Share   |   | $      | 0.14                                        |   |   | $ | 0.09 |   |
| Diluted Income Attributable to Common Shareholders Per Share |   | $      | 0.10                                        |   |   | $ | 0.08 |   |

----

|                                                         |   |   | (In Thousands, Except per Share Data) |   |
|--------------------------------------------------------------|--------|--------|---------------------------------------|--------|
|                                                         |   |   | 2010                                  |   |   |   | 2009 |   |
|                                                         |   |   |                                  |   |   |   |   |   |
| Revenues                                                     |   | $      | 227,496                               |   |   | $ | 147,839 |   |
| Costs of Sales                                               |   |   | 182,436                               |   |   |   | 116,588 |   |
| Gross Profit                                                 |   |   | 45,060                                |   |   |   | 31,251 |   |
| Total Operating Expenses                                     |   |   | 2,847                                 |   |   |   | 2,919 |   |
| Income From Operations                                       |   |   | 42,213                                |   |   |   | 28,332 |   |
| Other Income and Expenses                                    |   |   | (15,522                               | )      |   |   | (161 | ) |
| Provision for Income Taxes                                   |   |   | (10,964                               | )      |   |   | (7,259 | ) |
| Net Income                                                   |   |   | 15,727                                |   |   |   | 20,912 |   |
| Foreign Currency Translation Adjustment                      |   |   | 158                                   |   |   |   | 484 |   |
| Comprehensive Income                                         |   | $      | 15,885                                |   |   | $ | 21,396 |   |
| Basic Income Attributable to Common Shareholders Per Share   |   | $      | 0.08                                  |   |   | $ | 0.27 |   |
| Diluted Income Attributable to Common Shareholders Per Share |   | $      | 0.07                                  |   |   | $ | 0.26 |   |

----

----

----

|                                                                                                                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Description Inventories                                                                                                         |   | Judgments and Uncertainties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Effect if Actual ResultsDiffer from Assumptions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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|  The Company states its inventories at the lower of cost or market value and net of the cost of excess and obsolete items. |   |  The determination of inventory valuation reserves requires management to make estimates and judgments on the future salability of inventories. Valuation reserves for excess, obsolete, and slow-moving inventory are estimated by comparing the inventory levels  in order to identify inventory for which the resale value or replacement value is less than the inventoriable cost. Other factors that management considers in determining these reserves include whether individual inventory parts meet current specifications and can be substituted for a part currently being sold or used as a service part, overall market conditions, and other inventory management initiatives. |   |  Estimates of future product demand may prove to be inaccurate, in which case inventory may be understating or overstating the provision required for excess and obsolete inventories. In the future, if inventories are determined to be overvalued, the Company would be required to recognize such costs in cost of sales at the time of such determination. Likewise, if inventories are determined to be undervalued, costs of sales may have been over-reported in previous periods and the Company would be required to recognize such additional operating income at the time of sale. |

| Impairment of Long Lived Assets                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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|  The carrying amounts of long-lived assets are reviewed periodically in order to assess whether the recoverable amounts have declined below the carrying amounts. |   |  These assets are tested for impairment whenever events or changes in circumstances indicate that their recorded carrying amounts may not be recoverable. When such a decline has occurred, the carrying amount is reduced to recoverable amount. The recoverable amount is the greater of the net selling price and the value in use.  It is difficult to precisely estimate selling price because quoted market prices for the Company’s assets or cash-generating units are not readily available. In determining the value in use, expected cash flows generated by the asset or the cash-generating unit are discounted to their present value, which requires significant judgment relating to level of sales volume, selling price and amount of operating costs. The Company uses all readily available information in determining an amount that is a reasonable approximation of recoverable amount, including estimates based on reasonable and supportable assumptions and projections of sales volume, selling price and amount of operating costs. |   |  Estimates contemplated by the Company with regard to the recoverability of carrying amounts for its long lived assets may prove to be inaccurate, in which case property, plant and equipment may be understated or overstated. In the future, if property, plant and equipment are determined to be overvalued, the Company would be required to recognize such costs in operating expenses at the time of such determination. Likewise, if property, plant and equipment are determined to be undervalued, operating expenses may have been over-reported in previous periods and the Company would be required to recognize such additional operating income at the time of sale. |

| Depreciable Lives                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
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|  The estimated depreciable life of long lived assets is estimated upon the acquisition of assets . |   |  These assets are reviewed by management and assigned a specific depreciable life.  The depreciable life is used to estimate the term for which the assets cost basis should be depreciated or expense over.  The Company uses all readily available information in determining a depreciable life that is a reasonable approximation of the actual depreciable life of an asset. |   |  Estimates for depreciable life contemplated by the Company may prove to be inaccurate, in which case property, plant and equipment may be understated or overstated. In the future, if property, plant and equipment are determined to be overvalued, the Company would be required to recognize such costs in operating expenses at the time of such determination. Likewise, if property, plant and equipment are determined to be undervalued, operating expenses may have been over-reported in previous periods and the Company would be required to recognize such additional operating income at the time of sale. |

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| 1. | The audit adjustments recorded for fiscal years 2009 and 2008.             |
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| 2. | The lack of segregation of duties and responsibilities within the Company. |
| 3. | A limited number of employees with experience with US GAAP.                |

|   | 1. | We will continue to educate our management personnel to comply with the disclosure requirements of Securities Exchange Act of 1934 and Regulation S-K; and |
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|   | 2. | We will increase management oversight of accounting and reporting functions in the future.                                                                 |
|   | 3. | We will immediately seek out and attempt to hire additional employees with experience with US GAAP.                                                        |

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| Exhibit No. |   | Description                                                                                                                        |
|-------------|--------|------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                               |
| 10.1        |   | Consulting Agreement with Gerald DeCiccio                                                                                          |
|        |   |                                                                                                                               |
| 10.2        |   | Consulting Agreement with Doug Cole                                                                                                |
|        |   |                                                                                                                               |
| 14.1        |   | Code of Ethics (Incorporated by reference to the Company’s Current Report on Form 8-K filed with the SEC on March 24, 2010.) |
|        |   |                                                                                                                               |
| 31.1        |   | Certification of Chief Executive Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                           |
|        |   |                                                                                                                               |
| 31.2        |   | Certification of Chief Financial Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                           |
|        |   |                                                                                                                               |
| 32.1        |   | Certification of Chief Executive Officer, Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                           |
|        |   |                                                                                                                               |
| 32.2        |   | Certification of Chief Financial Officer, Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                |

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|               | Principal Executive Officers ofLongwei Petroleum Investment Holding Limited  |                                                                |
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|  May 14, 2010 | By:                                                                               | /s/ Cai Yongjun                                                     |   |
|               |                                                                              | Cai YongjunChief Executive Officer                                  |   |
|               |                                                                              |                                                                |   |
|               | By:                                                                               | /s/ James Crane                                                     |   |
|               |                                                                              | James CraneChief Financial Officer and Principal Accounting Officer |   |
|               |                                                                              |                                                                |   |