Document:

Letter
        of
        Transmittal

       

      To
        Offer
        to Exchange Each Outstanding Share of Preferred Stock

      of

      HEAD
        DRAGON HOLDINGS LIMITED

      for
        one
        share

      Common
        Stock of China Energy Technology Limited

      Pursuant
        to the Prospectus dated ____________, 2007

       

      THE
        OFFER
        AND WITHDRAWAL RIGHTS EXPIRE AT 12:00 MIDNIGHT, NEW YORK CITY TIME, ON
        ______________, 2007, UNLESS THE OFFER IS EXTENDED. SECURITIES TENDERED PURSUANT
        TO THE OFFER MAY BE WITHDRAWN AT ANY TIME PRIOR TO THE EXPIRATION
        DATE.

       

      By
        Mail, Overnight Courier or Hand Delivery

       

      China
        Energy Technology Limited

      c/o Chardan
        South China Acquisition Corporation

      625
        Broadway, Suite 1111

      San
        Diego, CA 92101

      

      

      DELIVERY
        OF THIS LETTER OF TRANSMITTAL TO AN ADDRESS, OTHER THAN AS SET FORTH ABOVE
        WILL
        NOT CONSTITUTE A VALID DELIVERY.

       

      THE
        INSTRUCTIONS ACCOMPANYING THIS LETTER OF TRANSMITTAL SHOULD BE READ CAREFULLY
        BEFORE THIS LETTER OF TRANSMITTAL IS COMPLETED.

       

      
        	
                DESCRIPTION
                  OF SHARES TENDERED

              
	
                Name(s)
                  and Address(es) of Registered Holder(s) (Please fill in, if blank,
                  exactly
                  as name(s) appear(s) on Share Certificate(s))

              	
                Share
                  Certificate(s) and Share(s) Tendered

                (Attach additional list, if necessary)

              
	 	
                Share
                  Certificate Number(s)

              	
                Total
                  Number of Shares Evidenced By Share
                  Certificate(s)

              	
                Number
                  of Shares Tendered*

              
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
                Total
                  Shares

              	 	 

      

      
        * Unless
          otherwise indicated, it will be assumed that all Shares evidenced by each
          Share
          Certificate delivered to China Energy Technology Limited are being tendered
          hereby. See Instruction 4.

      

      

       

      This
        Letter of Transmittal is to be used to forward certificates pursuant to the
        procedures set forth under in the Prospectus under the caption “The Exchange
        Offer—Procedure for Tendering.”

       

      IF
        ANY OF
        THE CERTIFICATES REPRESENTING SHARES THAT YOU OWN HAVE BEEN LOST OR DESTROYED,
        SEE INSTRUCTION 9 OF THIS LETTER OF TRANSMITTAL.

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      LOST
        CERTIFICATES

       

       ̈ I
        HAVE
        LOST MY CERTIFICATE(S) THAT
        REPRESENTED                   
SHARES AND REQUIRE ASSISTANCE IN OBTAINING REPLACEMENT CERTIFICATE(S). I
        UNDERSTAND THAT I MUST CONTACT CHINA ENERGY TECHNOLOGY LIMITED AND/OR HEAD
        DRAGON HOLDINGS LIMITED TO OBTAIN INSTRUCTIONS FOR REPLACING LOST CERTIFICATES.
        SEE INSTRUCTION 9.

       

      NOTE:
        SIGNATURES MUST BE PROVIDED BELOW.

      PLEASE
        READ ACCOMPANYING INSTRUCTIONS CAREFULLY.

       

      Ladies
        and Gentlemen:

       

      The
        undersigned hereby tenders to China Energy Technology Limited (“CETL”), a
        British Virgin Islands corporation, the above-described shares of preferred
        stock (the “Head Dragon Shares”) of Head Dragon Holdings Limited (“Head Dragon”)
        pursuant to CETL’s offer to exchange one share of common stock, par value $0.001
        per share, of CETL (the “CETL Shares”) for each outstanding Head Dragon Share,
        upon the terms and subject to the conditions set forth in the Prospectus,
        dated
        ___________, 2007 (the “Prospectus”), receipt of which is hereby acknowledged,
        and in this Letter of Transmittal (which together, as each may be amended,
        supplemented or otherwise modified from time to time, constitute the “Exchange
        Offer”). The undersigned understands that CETL reserves the right to transfer or
        assign, in whole or from time to time in part, to one or more of its affiliates
        the right to purchase Head Dragon Shares tendered pursuant to the Exchange
        Offer, but any such transfer or assignment will not relieve CETL of its
        obligations under the Exchange Offer or prejudice the undersigned’s rights to
        receive CETL Shares for Head Dragon Shares validly tendered and accepted
        for
        exchange.

       

      Upon
        the
        terms and subject to the conditions of the Exchange Offer and effective upon
        acceptance of the Head Dragon Shares tendered herewith in accordance with
        the
        terms of the Exchange Offer, the undersigned hereby sells, assigns and transfers
        to, or upon the order of, CETL all right, title and interest in and to all
        of
        the Head Dragon Shares that are being tendered hereby (and any and all
        dividends, distributions, rights, other Head Dragon Shares or other securities
        issued or issuable in respect thereof on or after the date hereof (collectively,
        a “Distribution”)) and appoints CETL the true and lawful agent and
        attorney-in-fact of the undersigned with respect to such Head Dragon Shares
        (and
        any Distribution), with full power of substitution (such power of attorney
        being
        deemed to be an irrevocable power coupled with an interest), to (i) deliver
        certificates for such Head Dragon Shares (and any Distribution), together
        with
        all accompanying evidences of transfer and authenticity, to or upon the order
        of
        CETL, (ii) present such Head Dragon Shares (and any Distribution) for transfer
        on the books of Head Dragon, and (iii) receive all benefits and otherwise
        exercise all rights of beneficial ownership of such Head Dragon Shares (and
        any
        Distribution), all in accordance with the terms of the Exchange
        Offer.

       

      The
        undersigned hereby irrevocably appoints designees of CETL as the attorneys
        and
        proxies of the undersigned, each with full power of substitution, to exercise
        all voting and other rights of the undersigned in such manner as each such
        attorney and proxy or his substitute shall in his sole discretion deem proper,
        with respect to all of the Head Dragon Shares tendered hereby which have
        been
        accepted for exchange by CETL prior to the time of any vote or other action
        (and
        any Distribution) at any meeting of shareholders of Head Dragon (whether
        or not
        an adjourned meeting), by written consent or otherwise. This proxy is
        irrevocable and is granted in consideration of, and is effective upon, the
        acceptance for exchange of such Head Dragon Shares by CETL in accordance
        with
        the terms of the Exchange Offer. Such acceptance for exchange shall revoke
        any
        other proxy or written consent granted by the undersigned at any time with
        respect to such Head Dragon Shares (and any Distribution), and no subsequent
        proxies will be given or written consents will be executed by the undersigned
        (and if given or executed, will not be deemed to be effective).

       

      The
        undersigned hereby represents and warrants that the undersigned has full
        power
        and authority to tender, sell, assign and transfer the Head Dragon Shares
        tendered hereby (and any Distribution) and that when the same are accepted
        for
        exchange by CETL, CETL will acquire good and unencumbered title thereto,
        free
        and clear of all liens, restrictions, charges and encumbrances and not subject
        to any adverse claims. The undersigned will, upon request, execute and deliver
        any additional documents deemed by CETL to be necessary or desirable to complete
        the sale, assignment and transfer of the Head Dragon Shares tendered hereby
        (and
        any Distribution).

       

      The
        undersigned understands that tenders of Head Dragon Shares pursuant to the
        procedures described in the Prospectus under the caption “The Exchange
        Offer—Procedure for Tendering” and in the instructions hereto will constitute a
        binding agreement between the undersigned and CETL upon the terms and subject
        to
        the conditions of the Exchange Offer. The undersigned recognizes that under
        certain circumstances set forth in the Prospectus, CETL may not be required
        to
        accept for exchange any of the Head Dragon Shares tendered hereby.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      The
        undersigned understands that the delivery and surrender of Head Dragon Shares
        that the undersigned has tendered is not effective, and the risk of loss
        of Head
        Dragon Shares does not pass to CETL, until CETL receives the Letter of
        Transmittal, duly completed and signed, together with all accompanying evidences
        of authority in form satisfactory to CETL and any other required documents.
        THE
        UNDERSIGNED UNDERSTANDS THAT ALL QUESTIONS AS TO THE FORM OF DOCUMENTS
        (INCLUDING NOTICES OF WITHDRAWAL) AND THE VALIDITY, FORM, ELIGIBILITY (INCLUDING
        TIME OF RECEIPT) AND ACCEPTANCE FOR EXCHANGE OF ANY TENDER OF HEAD DRAGON
        SHARES
        WILL BE DETERMINED BY CETL AND IN ITS SOLE DISCRETION. HOLDERS OF HEAD DRAGON
        SHARES MAY CHALLENGE CETL’S DETERMINATION IN ANY COURT OF COMPETENT
        JURISDICTION, WHICH IS THE ONLY BODY THAT CAN MAKE A FINAL AND BINDING
        DETERMINATION OF ANY DISPUTED DECISIONS. The undersigned also understands
        that
        no tender of Head Dragon Shares is valid until all defects and irregularities
        in
        tenders of Head Dragon Shares have been cured or waived and that none of
        CETL,
        or any other person is under any duty to give notification of any defects
        or
        irregularities in the tender of any Head Dragon Shares or will incur any
        liability for failure to give any such notification.

       

      All
        authority herein conferred or agreed to be conferred shall survive the death
        or
        incapacity of the undersigned, and any obligation of the undersigned hereunder
        shall be binding upon the heirs, personal representatives, successors and
        assigns of the undersigned. Except as stated in the Exchange Offer, this
        tender
        is irrevocable.

       

      Unless
        otherwise indicated under “Special Issuance Instructions,” please issue the CETL
        Shares and return any Head Dragon Shares not tendered or not accepted for
        exchange, in the name(s) of the undersigned. Similarly, unless otherwise
        indicated under “Special Delivery Instructions,” please mail the CETL Shares and
        any certificates for Head Dragon Shares not tendered or not accepted for
        exchange (and accompanying documents, as appropriate) to the undersigned
        at the
        address shown below the undersigned’s signature(s). In the event that both
“Special Issuance Instructions” and “Special Delivery Instructions” are
        completed, please issue the CETL Shares and return any Head Dragon Shares
        not
        tendered or not accepted for exchange in the name(s) of, and mail said check
        and
        any certificates to, the person(s) so indicated. The undersigned recognizes
        that
        CETL has no obligation, pursuant to the “Special Issuance Instructions,” to
        transfer any Head Dragon Shares from the name of the registered holder(s)
        thereof if CETL does not accept for exchange any of the Head Dragon Shares
        so
        tendered.

       

      

       

      
        	
                SPECIAL
                  ISSUANCE INSTRUCTIONS

                (See
                  Instructions 1, 5, 6 and 7)

              	 	
                SPECIAL
                  DELIVERY INSTRUCTIONS

                (See
                  Instructions 1, 5, 6 and 7)

              
	
                To
                  be completed ONLY if the CETL Shares (or certificates for Head
                  Dragon
                  Shares not tendered or not accepted for exchange) are to be issued
                  in the
                  name of someone other than the undersigned.

              	 	
                To
                  be completed ONLY if the CETL Shares (or certificates for Head
                  Dragon
                  Shares not tendered or not accepted for exchange) are to be sent
                  to
                  someone other than the undersigned.

              
	 	 	 
	
                Issue
                  Certificates to:

              	 	
                Mail
                  Certificates to:

              
	 	 	 
	
                Name:_____________________________________

              	 	
                Name:_____________________________________

              
	
                (Please
                  Print)

              	 	
                (Please
                  Print)

              
	 	 	 
	
                Address:___________________________________

                               
                  ___________________________________

                (Zip
                  Code)

              	 	
                Address:___________________________________

                               
                  ___________________________________

                (Zip
                  Code)

              
	 	 	 
	
                               
                  ___________________________________

                (Taxpayer
                  Identification No.)

              	 	
                               
                  ___________________________________

                (Taxpayer
                  Identification No.)

              

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      IMPORTANT—SIGN
        HERE

      (Also
        Complete Substitute Form W-9 Included Below)

      (Signature(s)
        of Owner(s))

       

       

      Dated
        _______________________________________________________________________________________________________

       

      Name(s)
        _____________________________________________________________________________________________________

       

                    
        _____________________________________________________________________________________________________

      (Please
        Print)

       

       

      Capacity
        (full title)
        _____________________________________________________________________________________________

       

      Address
        _____________________________________________________________________________________________________

      (Include
        Zip Code)

       

      Area
        Code
        and Telephone Number _________________________________

      

      

      (Must
        be
        signed by registered holder(s) exactly as name(s) appear(s) on Share
        Certificate(s). If signature is by a trustee, executor, administrator, guardian,
        attorney-in-fact, agent, officer of a corporation or other person acting
        in a
        fiduciary or representative capacity, please provide the necessary information
        above and see Instruction 5.)

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      GUARANTEE
        OF SIGNATURE(S)

      (See
        Instructions 1 and 5)

      FOR
        USE
        BY FINANCIAL INSTITUTIONS ONLY

      FINANCIAL
        INSTITUTIONS: PLACE MEDALLION GUARANTEE IN SPACE BELOW.

       

       

      Authorized
        Signature
        ___________________________________________________________________________________________

       

      Name
        _______________________________________________________________________________________________________

       

      Title
        ________________________________________________________________________________________________________

      (Please
        Print)

       

      

      Name
        of
        Firm
        _________________________________________________________________________________________________

       

      Address
        _____________________________________________________________________________________________________

      (Include
        Zip Code)

      

      Area
        Code
        and Telephone Number
        _________________________________________________________________________________

      

      Dated
        _______________________________________________________________________________________________________

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      

      
        	
                SUBSTITUTE
                  FORM W-9

              	
                PAYER’S
                  NAME: China Energy Technology Limited

              	 
	
                Department
                  of The Treasury 

                Internal
                  Revenue Service

                 

                Payer’s
                  Request for Taxpayer Identification Number (“TIN”) and
                  Certification

              	
                PART
                  1

                Please
                  provide your TIN and certify by signing and dating below.

              	
                Social
                  Security Number OR

                Employer
                  Identification Number(s):

                 

                _____________________

              
	 	
                PART
                  2  ̈
                  Exempt
                  from Backup Withholding  ̈
                  Awaiting TIN

              
	 	 	 
	 	
                PART
                  3—CERTIFICATION

                Under
                  penalties of perjury, I certify that:

                 

                (1) 
                  The number shown on this form is my current taxpayer identification
                  number
                  (or I am waiting for a number to be issued to me); and

                 

                (2) 
                  I am not subject to backup withholding because (a) I am exempt
                  from backup
                  withholding, (b) I have not been notified by the Internal Revenue
                  Service
                  (the “IRS”) that I am subject to backup withholding as a result of failure
                  to report all interest or dividends, or (c) the IRS has notified
                  me that I
                  am no longer subject to backup withholding; and

                 

                (3)  
                  I am a U.S. person (including a U.S. resident alien).

                 

                CERTIFICATION
                  INSTRUCTIONS. You must cross out item (2) in Part 3 above if you
                  have been
                  notified by the IRS that you are subject to backup withholding
                  because of
                  underreporting interest or dividends on your tax return. However,
                  if after
                  being notified by the IRS that you are subject to backup withholding
                  you
                  receive another notification from the IRS stating that you are
                  no longer
                  subject to backup withholding, do not cross out item
                  (2).

              
	 	 
	 	
                SIGNATURE
                  _____________________________________________

                 

                NAME
                  __________________________________________________

                 

                BUSINESS
                  NAME _________________________________________

                 

                (If
                  different from above) _____________________________________

                 

                Check
                  appropriate box:

                 ̈
                  Individual/Sole Proprietor  ̈
                  Corporation  ̈
                  Partnership  ̈
                  Other_____

                 

                ADDRESS
                  _______________________________________________

                 

                CITY
                  _________________    STATE
                  ________    ZIP
                  CODE _________

              

      

      

      NOTE:
        FAILURE
        TO COMPLETE AND RETURN THIS FORM MAY RESULT IN BACKUP WITHHOLDING OF A PORTION
        OF ANY PAYMENT MADE TO YOU PURSUANT TO THE OFFER. PLEASE REVIEW THE ENCLOSED
        “GUIDELINES FOR CERTIFICATION OF TAXPAYER IDENTIFICATION NUMBER ON SUBSTITUTE
        FORM W-9” FOR ADDITIONAL DETAILS.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      Instructions

      Forming
        Part of the Terms and Conditions of the Offer

       

      1. Guarantee
        of Signatures.
        Except
        as otherwise provided below, all signatures on this Letter of Transmittal
        must
        be guaranteed by a financial institution (including most banks, savings and
        loan
        associations and brokerage houses) that is a member of a recognized Medallion
        Program approved by The Securities Transfer Association, Inc. or any other
        “eligible guarantor institution” (as such term is defined in Rule 17Ad-15 under
        the Securities Exchange Act of 1934, as amended) (each an “Eligible
        Institution”). Signatures
        on this Letter of Transmittal need not
        be guaranteed if this Letter of Transmittal is signed by the registered
        holder(s) of the Head Dragon Shares tendered herewith and such holder(s)
        have
        not completed the instruction entitled “Special Issuance Instructions” on this
        Letter of Transmittal. See Instruction 5.

       

      2. Delivery
        of Letter of Transmittal and Shares.
        This
        Letter of Transmittal is to be used if Share Certificates are to be forwarded
        herewith. Share Certificates for all Head Dragon Shares as well as a properly
        completed and duly executed Letter of Transmittal (or a manually signed
        facsimile thereof) and any other documents required by this Letter of
        Transmittal must be received by CETL at its addresses set forth on the front
        page of this Letter of Transmittal by the expiration date (as defined in
        the
        Prospectus). 

       

      THE
        METHOD OF DELIVERY OF HEAD DRAGON SHARES AND ALL OTHER REQUIRED DOCUMENTS,
        IS AT
        THE OPTION AND RISK OF THE TENDERING SHAREHOLDER, AND THE DELIVERY WILL BE
        DEEMED MADE ONLY WHEN ACTUALLY RECEIVED BY CETL. IF CERTIFICATES FOR SHARES
        ARE
        SENT BY MAIL, REGISTERED MAIL WITH RETURN RECEIPT REQUESTED, PROPERLY INSURED,
        IS RECOMMENDED. IN ALL CASES, SUFFICIENT TIME SHOULD BE ALLOWED TO ENSURE
        TIMELY
        DELIVERY.

       

      NO
        ALTERNATIVE, CONDITIONAL OR CONTINGENT TENDERS WILL BE ACCEPTED, AND NO
        FRACTIONAL SHARES WILL BE PURCHASED. BY EXECUTING THIS LETTER OF TRANSMITTAL,
        THE TENDERING SHAREHOLDER WAIVES ANY RIGHT TO RECEIVE ANY NOTICE OF THE
        ACCEPTANCE FOR PAYMENT OF THE HEAD DRAGON SHARES.

       

      3. Inadequate
        Space.
        If the
        space provided herein is inadequate, the Share Certificate numbers, the number
        of Head Dragon Shares evidenced by such Share Certificates and the number
        of
        Head Dragon Shares tendered should be listed on a separate signed schedule
        and
        attached hereto.

       

      4. Partial
        Tenders.
        If
        fewer than all the Head Dragon Shares represented by any certificate delivered
        to CETL are to be tendered, fill in the number of Head Dragon Shares which
        are
        to be tendered in the box entitled “Number of Head Dragon Shares Tendered.” In
        such case, a new certificate for the remainder of the Head Dragon Shares
        represented by the old certificate will be sent to the person(s) signing
        this
        Letter of Transmittal, unless otherwise provided in the appropriate box on
        this
        Letter of Transmittal, as promptly as practicable following the expiration
        or
        termination of the Offer. All Head Dragon Shares represented by certificates
        delivered to CETL will be deemed to have been tendered unless otherwise
        indicated.

       

      5. Signatures
        on Letter of Transmittal; Stock Powers and Endorsements.
        If this
        Letter of Transmittal is signed by the registered holder(s) of the Head Dragon
        Shares tendered hereby, the signature(s) must correspond with the name(s)
        as
        written on the face of the certificates without alteration, enlargement or
        any
        change whatsoever.

       

      If
        any of
        the Head Dragon Shares tendered hereby are held of record by two or more
        persons, all such persons must sign this Letter of Transmittal.

       

      If
        any of
        the Head Dragon Shares tendered hereby are registered in different names
        on
        different certificates, it will be necessary to complete, sign and submit
        as
        many separate Letters of Transmittal as there are different registrations
        of
        certificates.

       

      If
        this
        Letter of Transmittal is signed by the registered holder(s) of the Head Dragon
        Shares tendered hereby, no endorsements of certificates or separate stock
        powers
        are required unless payment of the shares of CETL is to be made, or Head
        Dragon
        Shares not tendered or not accepted for exchange are to be returned, in the
        name
        of any person other than the registered holder(s). Signatures on any such
        certificates or stock powers must be guaranteed by an Eligible
        Institution.

       

      If
        this
        Letter of Transmittal is signed by a person other than the registered holder(s)
        of the Head Dragon Shares tendered hereby, certificates must be endorsed
        or
        accompanied by appropriate stock powers, in either case, signed exactly as
        the
        name(s) of the registered holder(s) appear(s) on the certificates for such
        Head
        Dragon Shares. Signature(s) on any such certificates or stock powers must
        be
        guaranteed by an Eligible Institution.

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      If
        this
        Letter of Transmittal or any certificate or stock power is signed by a trustee,
        executor, administrator, guardian, attorney-in-fact, officer of a corporation
        or
        other person acting in a fiduciary or representative capacity, such person
        should so indicate when signing, and proper evidence satisfactory to CETL
        of the
        authority of such person so to act must be submitted. Proper evidence of
        authority includes a power of attorney, a letter of testamentary or a letter
        of
        appointment.

       

      6. Stock
        Transfer Taxes.
        CETL
        will pay any stock transfer taxes with respect to the sale and transfer of
        any
        Head Dragon Shares to it or its order pursuant to the Exchange Offer. If,
        however, payment of the purchase price is to be made to, or Head Dragon Shares
        not tendered or not accepted for exchange are to be returned in the name
        of, any
        person other than the registered holder(s), or if a transfer tax is imposed
        for
        any reason other than the sale or transfer of Head Dragon Shares to CETL
        pursuant to the Exchange Offer, then the amount of any stock transfer taxes
        (whether imposed on the registered holder(s), such other person or otherwise)
        will be deducted from the purchase price unless satisfactory evidence of
        the
        payment of such taxes, or exemption therefrom, is submitted
        herewith.

       

      7. Special
        Issuance and Delivery Instructions.
        If
        certificates for CETL Shares, or any Head Dragon Shares not tendered or not
        accepted for exchange are to be returned, in the name of a person other than
        the
        person(s) signing this Letter of Transmittal or if any certificates for Head
        Dragon Shares not tendered or not purchased are to be mailed to someone other
        than the person(s) signing this Letter of Transmittal or to the person(s)
        signing this Letter of Transmittal at an address other than that shown above,
        the appropriate boxes on this Letter of Transmittal should be completed.
        

       

      8. Substitute
        Form W-9.
        Under
        U.S. federal income tax law, CETL may be required to withhold a portion of
        the
        amount of any payments made to certain shareholders pursuant to the Exchange
        Offer. To avoid such backup withholding, each tendering shareholder must
        provide
        CETL with such shareholder’s correct taxpayer identification number and certify
        that such shareholder is not subject to such backup withholding by completing
        the Substitute Form W-9. In general, if a shareholder is an individual, the
        taxpayer identification number is the Social Security number of such individual.
        If CETL is not provided with the correct taxpayer identification number,
        the
        shareholder may be subject to a $50 penalty imposed by the Internal Revenue
        Service. For further information concerning backup withholding and instructions
        for completing the Substitute Form W-9 (including how to obtain a taxpayer
        identification number if you do not have one and how to complete the Substitute
        Form W-9 if Head Dragon Shares are held in more than one name), consult the
        enclosed Guidelines for Certification of Taxpayer Identification Number on
        Substitute Form W-9.

       

      Certain
        shareholders (including, among others, all corporations and certain foreign
        individuals) are not subject to these backup withholding and reporting
        requirements. Exempt shareholders should indicate their exempt status on
        Substitute Form W-9. To satisfy CETL that a foreign person qualifies as an
        exempt recipient, such shareholder must submit a properly completed IRS Form
        W-8BEN, signed under penalties of perjury, attesting to that person’s exempt
        status. Such Forms can be obtained from CETL.

       

      Failure
        to complete the Substitute Form W-9 will not, by itself, cause Head Dragon
        Shares to be deemed invalidly tendered, but may require CETL to withhold
        a
        portion of the amount of any payments made pursuant to the Offer. Backup
        withholding is not an additional federal income tax. Rather, the federal
        income
        tax liability of a person subject to backup withholding will be reduced by
        the
        amount of tax withheld. If withholding results in an overpayment of taxes,
        a
        refund may be obtained provided that the required information is furnished
        to
        the Internal Revenue Service. NOTE: FAILURE TO COMPLETE AND RETURN THE
        SUBSTITUTE FORM W-9 MAY RESULT IN BACKUP WITHHOLDING OF A PORTION OF ANY
        PAYMENTS MADE TO YOU PURSUANT TO THE OFFER. PLEASE REVIEW THE ENCLOSED
“GUIDELINES FOR CERTIFICATION OF TAXPAYER IDENTIFICATION NUMBER ON SUBSTITUTE
        FORM W-9” FOR ADDITIONAL DETAILS.

       

      9. Mutilated,
        Lost, Stolen or Destroyed Certificates.
        Holders
        of Head Dragon Share Certificates that have been mutilated, lost, stolen,
        or
        destroyed should (i) complete this Letter of Transmittal and check the
        appropriate box above and (ii) contact Head Dragon immediately by calling
        [(___)
        ___-____]. Head Dragon should be able to provide such holders with all necessary
        forms and instructions to replace any mutilated, lost, stolen or destroyed
        certificates. The holder may also be required to give Head Dragon a bond
        as
        indemnity against any claim that may be made against it with respect to the
        certificates alleged to have been mutilated, lost, stolen, or destroyed.
        However, there can be no assurances that such mutilated, lost, stolen or
        destroyed certificates will be replaced prior to the expiration date of the
        Exchange Offer.

       

      10. Waiver
        of Conditions.
        The
        conditions of the Exchange Offer may be waived, in whole or in part, by CETL,
        in
        its sole discretion, at any time and from time to time, in the case of any
        Shares tendered.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      11. Requests
        for Assistance or Additional Copies.
        Questions or requests for assistance may be directed to CETL at its address
        and
        telephone number set forth below. Additional copies of the Prospectus and
        the
        Letter of Transmittal may be obtained from CETL at its address and telephone
        number set forth below. 

       

      12. Irregularities.
        All
        questions as to the validity, form, eligibility (including time of receipt),
        and
        acceptance for exchange of any tender of Head Dragon Shares will be determined
        by CETL in its sole discretion, and its determinations shall be final and
        binding. CETL reserves the absolute right to reject any and all tenders of
        Head
        Dragon Shares that it determines are not in proper form or the acceptance
        of or
        exchange for which may, in the opinion of CETL’s counsel, be unlawful. CETL also
        reserves the absolute right to waive certain conditions to the Exchange Offer
        described in the Prospectus under the section titled “The Exchange
        Offer—Conditions to the Exchange Offer,” or any defect or irregularity in the
        tender of any Head Dragon Shares. No tender of Head Dragon Shares will be
        deemed
        to be properly made until all defects and irregularities in tenders of shares
        have been cured or waived. None of CETL or any other person is or will be
        obligated to give notice of any defects or irregularities in the tender of
        Head
        Dragon Shares and none of them will incur any liability for failure to give
        any
        such notice. CETL’s interpretation of the terms and conditions of the Exchange
        Offer, including the Letter of Transmittal, will be final and
        binding.

       

      IMPORTANT:
        THIS LETTER OF TRANSMITTAL (OR A MANUALLY SIGNED FACSIMILE THEREOF) TOGETHER
        WITH ANY SIGNATURE GUARANTEES AND ANY OTHER REQUIRED DOCUMENTS, MUST BE RECEIVED
        BY CETL PRIOR TO THE EXPIRATION DATE AND CERTIFICATES FOR TENDERED SHARES
        MUST
        BE RECEIVED BY CETL PRIOR TO THE EXPIRATION DATE.

       

      Any
        questions or requests for assistance may be directed to CETL at its address
        or
        telephone number set forth below. Additional copies of the Prospectus and
        the
        Letter of Transmittal may be obtained from CETL at its address and telephone
        number set forth below. 

       

      

      CHINA
        ENERGY TECHNOLOGY LIMITED

      c/o
        Chardan South China Acquisition Corporation

      625
        Broadway, Suite 1111

      San
        Diego, CA 92101

      Telephone:
        (619) 795-4627

       

      
        
           

        

        
          9Exhibit
      10.3

    

    AMENDMENT
      AGREEMENT DATED JULY 13, 2007

    BETWEEN
      BLACKHAWK AND SMH CAPITAL INC.

     

    
      SMH
        CAPITAL INC.

    

    

    July
      13,
      2007

    

    Dr.
      Craig
      A. Zabala

    Chairman
      of the Board, President

    and
      Chief
      Executive Officer

    Blackhawk
      Capital Group BDC, Inc.

    14
      Wall
      Street

    New
      York,
      New York 10005

    

    Dear
      Sirs:

    

    Reference
      is made to the agreement dated October 31, 2006 ("Agreement") between Sanders
      Morris Harris Inc., a Texas corporation ("SMH") and Blackhawk Capital Group
      BDC,
      Inc., a Delaware corporation (the "Company") and a business development company
      registered under the Investment Company Act of 1940, as amended (the "Investment
      Company Act"), pursuant to which SMH has acted as financial adviser and
      placement agent to the Company for the Company's sale of a maximum amount of
      5,000,000 shares of its common stock ("Securities") to accredited investors
      in
      the Company's Regulation E Offering ("Offering") under the Securities Act of
      1933, as amended ("Securities Act"). The Agreement was supplemented by a letter
      agreement dated January 27, 2007 ("First Amendment") between SMH and the Company
      relating to the participation of Janney Montgomery Scott in the Offering.

     

    The
      purpose of this letter agreement ("Second Amendment") is to amend Sections
      2 and
      3 of the Agreement relating to fees and expenses, and to clarify other
      provisions of the Agreement. The parties agree that Section 2 of the Agreement
      will be deleted in its entirety and replaced with the following:

     

    
      	 	
              2.

            	
              Fees
                and Non-Exclusivity.
                The Company shall not be responsible for the payment of any fees
                (whether
                advisory fees or placement agent fees) to SMH for any Securities
                placed by
                SMH between the date of this Agreement and July 16, 2007. SMH expressly
                waives any fees for placing Securities during this period. For Securities
                placed by SMH during the period from July 17, 2007 until the earlier
                of
                the termination of the Offering or the termination of this Agreement,
                the
                Company will pay SMH a cash fee equal to 9.00% of the gross proceeds
                of
                any Securities placed by SMH (consisting of a 2.00% advisory fee
                and a
                7.00% placement agent fee). Any fee contemplated in the above sentence
                will be referred to as the "Financing Fees." Any Financing Fees payable
                to
                SMH will be due at the last and final closing of the Offering and
                shall be
                payable to SMH by the Company. No placement agent fee of 7.00% shall
                be
                payable by the Company to SMH for (i) investors introduced to SMH
                by the
                Company; (ii) Securities purchased in the Offering by the Company's
                officers, directors, controlling stockholders or affiliates; and
                (iii)
                Securities purchased in the offering by any investor identified by
                the
                Company irrespective of whether such investor is introduced to SMH
                or not.
                However, the 2.00% advisory fee shall be payable by the Company to
                SMH for
                Securities purchased by investors listed in category (i) in the prior
                sentence. The parties acknowledge and agree that SMH will not be
                entitled
                to any fees (whether placement agent fees or advisory fees) on debt
                conversions by the Company's affiliate, The Concorde Group, Inc.
                SMH's
                services pursuant to this Agreement and the Offering shall be
                non-exclusive. 

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    The
      parties agree that Section 3 of the Agreement will be deleted in its entirety
      and replaced with the following:

     

    
      	 	
              3.

            	
              Expenses.
                The Company shall not be responsible for paying any expenses of SMH
                relating to this Agreement or the Offering, except for expenses in
                the
                amount of $2,300 incurred by SMH prior to July 16, 2007 which will
                be paid
                at the end of the Offering upon delivery of valid receipts.
                

            

    

     

    The
      following paragraph at the top of page 5 of the Agreement shall be deleted
      in
      its entirety: 

     

    The
      Company shall have the right to identify investors with which it has
      affiliations who would be suitable accredited investors for the Offering
      ("Company-Introduced Investors"), and introduce these investors to SMH for
      the
      Offering. In the event that SMH and the Company decide that these investors
      are
      suitable for the Offering and purchase Securities in the Offering, fees shall
      be
      due to SMH respecting Securities purchased by Company-Introduced Investors
      pursuant to Section 2 above. 

     

    The
      parties further agree that as to Exhibit A of the Agreement, (i) the reference
      to minimum Offering amount and shares shall be reduced from $3,500,000 and
      3,500,000 respectively, to $500,000 and 500,000, respectively; and (iv) the
      reference to the Company filing a registration statement shall be deleted in
      its
      entirety. 

     

    Except
      as
      amended and supplemented by the First Amendment and this Second Amendment,
      the
      terms of Agreement shall remain in effect. 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    If
      this
      Second Amendment reflects our mutual understanding, please execute two copies
      in
      the space indicated below and return one to us.

    

    
      	
              Very
                truly yours,

            
	 
	
              
                SMH
                  CAPITAL INC.

              

            
	 
	
              /s/
                RICHARD J. KELLY

            
	
              Richard
                J. Kelly

            
	
              Managing
                Director-Financial Services

            

    

    

    Accepted
      and agreed to as of July 13, 2007.

    

    BLACKHAWK
      CAPITAL GROUP BDC, INC.

    

    
      	
              /s/
                Craig A. Zabala

            
	
              Dr.
                Craig A. Zabala

            
	
              Chairman
                of the Board, President

            
	
              And
                Chief Executive
                Officer

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