CTE Sinotech (MM)

Pomerantz Haudek Grossman & Gross LLP has filed a class action lawsuit against SinoTech Energy Limited ("SinoTech" or the "Company") (Nasdaq:CTE) and certain of its officers. The class action (Civil Action No. 11-civ-6905) in the United States Southern District Court of New York is on behalf of all persons or entities who purchased the American Depositary Shares (ADSs) of SinoTech Energy Limited pursuant and/or traceable to the Company's Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with the Company's initial public offering commencing November 3, 2010, including purchasers of SinoTech ADSs between November 3, 2010 and August 16, 2011, inclusive (the "Class Period"). The Complaint alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Exchange Act of 1934; and SEC Rule 10b-5 promulgated thereunder by the Securities and Exchange Commission.

If you are a shareholder who purchased SinoTech securities during the Class Period, you have until October 18, 2011 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x350.

The Complaint alleges that SinoTech violated federal securities laws by issuing materially inaccurate information about the Company's financial performance. On August 16, 2011, a report ("Report") was issued by the Alfred Little website demonstrating that the Company's business was smaller than it had represented to investors in its SEC filings. The Report found, among other things, that: (1) the Company's sole import agent, who accounted for more than $100 million worth of oil drilling equipment orders, is an empty shell company with no sign of operations; (2) the Company's only chemical supplier is also an empty shell company, with little or no revenues; (3) the Company's largest subcontracting customer, which provides the vast majority of SinoTech's revenues, has unverifiable operations with minimal revenues; (4) the financial statements SinoTech issued in the United States are inconsistent with similar filings the Company made in China; (5) the Company has engaged in undisclosed related-party transactions in violation of Generally Accepted Accounting Principles; and (6) positive statements the Company made regarding its internal financial controls were false and misleading.

As a result of the news, the Company's stock price plummeted more than 40%, falling from $4.02 per share on August 15, 2011 to $2.35 per share at the close of trading on August 16, 2011 – a decline of $1.67 per share on unusually high trading volume. The NASDAQ halted SinoTech trading after the market closed on August 16, 2011, announcing that trading would remain halted until the Company "fully satisfied NASDAQ's request for additional information." To date, trading has not resumed.

The Pomerantz Firm, with offices in New York, Chicago, and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.

CONTACT: Rachelle R. Boyle
         Pomerantz Haudek Grossman & Gross LLP
         rrboyle@pomlaw.com