China Recycling Energy Corporation Transfers WHPG Project to Jitie for US$14.7 Million

China Recycling EnergyCorporation Transfers WHPG Project to Jitie for US$14.7 Million

XI'AN,China, June 24, 2015 -- China Recycling EnergyCorp. (NASDAQ: CREG) (“CREG” or “the Company”), a leading industrialwaste-to-energy solution provider inChina, today announced that Xi’anTCH Energy Technology Co., Ltd.(“Xi’an TCH”), its wholly owned subsidiary, recentlyentered into a Repurchase Agreement for the Waste Heat Power Generation(“WHPG”) Project (“Repurchase Agreement”) with Sinosteel Group Jilin FerroalloysCo., Ltd. (“Jitie”). Under the RepurchaseAgreement, Jitie will repurchase the WHPG Project from Xi’an TCH at a totalprice of approximately US$14.7 million (RMB90.0 million).

TheCompany completed the WHPG Project in December 2013,and started to lease it to Jitiein January 2014 for a period of 24 years. The Company initially invested aboutUS$10.1 million (RMB61.7 million) in the WHPG Project and received net monthlyminimum rental fees from Jitie of about US$0.3 million (RMB1.7 million), for atotal of about US$4.8 million (RMB29.5 million) as of June 18, 2015.

In December 2014, SinosteelGroup, Jitie’s controlling shareholder entered into an equity transferagreement with Liaoning ZhongZe Group for the transfer of ownership of Jitie,pursuant to which Liaoning Zhongze Group became the controlling shareholder ofJitie. Due to the change inits strategic plan and business restructuring, Jitie notified Xi’an TCH that itrequested the repurchase of the WHPG Project. After negotiations, the Company agreedto an early transfer of the WHPG Project for a price of about US$14.7 million(RMB90.0 million).  

Mr. Guohua Ku, Chairman and CEO of CREG commented,“Due to the industrial consolidations in China over the past years, weexperienced early termination of several lease contracts in recent months, amongwhich Jitie is the latest one. We believe that the early termination fee morethan compensates the Company for the loss of futureincome and wewill deploy the cash from the early transfer to fundnew projects already under contract. In the meantime, we will keep monitoring industrytrends and make sure we are well prepared to respond to the changing dynamicsofthe industries we serve. In addition to developing new energyrecycling solutions, we are also exploring new operating and revenue models thatwe believe will benefit both our clients and the Company going forward. Weexpect to complete one new system by the end of the second quarter.”

AboutChinaRecycling Energy Corp.

China Recycling Energy Corp. (NASDAQ: CREG) (“CREG” or “the Company”) is based in Xi'an,Chinaand provides environmentally friendly waste-to-energy technologies to recycleindustrial byproducts for steel mills, cement factories and coke plants inChina.Byproducts include heat, steam, pressure, and exhaust to generate large amountsof lower-cost electricity and reduce the need for outside electrical sources.The Chinese government has adopted policies to encourage the use of recyclingtechnologies to optimize resource allocation and reduce pollution. Currently,recycled energy represents only an estimated 1 percent of total energyconsumption and this renewable energy resource is viewed as a growth market dueto intensified environmental concerns and rising energy costs as the Chineseeconomy continues to expand. The management and engineering teams have over 20years of experience in industrial energy recovery inChina. For more information aboutCREG, please visit http://creg-cn.investorroom.com.

Safe Harbor Statement

This press release may contain certain"forward-looking statements" relating to the business of ChinaRecycling Energy Corp. and its subsidiary companies. All statements, other thanstatements of historical fact included herein are "forward-lookingstatements." These forward-looking statements are often identified by theuse of forward-looking terminology such as "believes,""expects" or similar expressions, involve known and unknown risks anduncertainties. Although the Company believes that the expectations reflected inthese forward-looking statements are reasonable, they do involve assumptions,risks and uncertainties, and these expectations may prove to be incorrect.Investors should not place undue reliance on these forward-looking statements,which speak only as of the date of this press release. The Company's actualresults could differ materially from those anticipated in these forward-lookingstatements as a result of a variety of factors, including those discussed inthe Company's periodic reports that are filed with the Securities and ExchangeCommission and available on its website at http://www.sec.gov.All forward-looking statements attributable to the Company or persons acting onits behalf are expressly qualified in their entirety by these factors. Otherthan as required under the securities laws, the Company does not assume a dutyto update these forward-looking statements.

Formore information, please contact:

Mr. Jackie Shi, Chief Financial Officer
ChinaRecycling Energy Corp.
Tel: +86- 13992870723

Email: shi723910@163.com / shi723@creg-cn.com

Christensen

Ms. Xiaoyan Su(China)

Vice President

Tel: +86-10-5900-3429

Email: xsu@christensenir.com

Mr. Christian Arnell (China)

Vice President

Phone: +86-10-5900-1548

E-mail: carnell@christensenir.com