CARP Wt Carbon

    4 July 2008

                    China Changfa Alumina Recycling Limited                    

                      ("China Changfa" or "the Company")                       

            Interim results for the six months ended 31 March 2008             

                             Chairman's Statement                              

I am pleased to announce the results of China Changfa for the six months ended
31 March 2008.

Highlights include:

  * Revenue for the six months of �1.2 million (2007; �1.1m)   
  * Profit after tax for the six months of �67,000 (2007; �0.1m)
   
Financial and operating overview

China Changfa, incorporated in Jersey, is the holding company of Xi'an
Changfeng Aluminium Recycling Co. Ltd ("Xi'an Changfeng") based in Shaanxi
Province, China. Xi'an Changfeng is one of the few companies in China which
recycles alumina waste, producing high silicon aluminium using its proprietary
electrolytic technology.

Revenue for the six months ended 31 March 2008 was �1.2 million, with profit
after tax amounting to �67,000. The reduced profit compared to last year is due
to the significant rise in the price of coal and relatively stable price of
high silicon aluminium in China.

Outlook

Given the increasing costs of coal and inability at present to raise the sales
price of their core product, the Company plans to shift its core business from
high silicon aluminium production to straw power generation by converting
coal-fired power plant to biomass power plant.

Changfa's energy saving strategy is in line with the Chinese government's
environmental policy and therefore is highly supported by provincial and local
government. If approved by the authorities, it will be the first clean
electricity plant in Shaanxi province. The Chinese government provides
subsidies of 0.25 yuan per kw/h for biomass energy generation and all the
electricity will be purchased by the National Grid. The Company will start
constructing generators upon approval and expect to start running in the first
half of 2009. Once operational, the reduced raw material costs and government
subsidy are expected to greatly enhance the Company's profit levels.

Apart from straw power generation, the Company is also seeking to derive
revenue from selling carbon credits under the Clean Development Mechanism
(CDM). According to the project design, if successfully registered with the
United Nations, the project will generate 77MW of electricity and reduce 80,000
tons of green house gas emissions per year.

Chen Changwu
Chairman
4 July 2008

China Changfa Alumina Recycling Limited                                        
Consolidated Income Statement For The Six Months Ended 31 March 2008           
                                                                               
                                                             �'000             
                                                                               
Revenue                                                      1,181             
                                                                               
Local tax                                                      (6)             
                                                                               
Cost of sales                                                (940)             
                                                                               
Gross profit                                                   235             
                                                                               
Administrative expenses                                      (135)             
                                                                               
Operating profit                                               100             
                                                                               
Income tax                                                    (33)             
                                                                               
Profit for the year                                             67             
                                                                               
Earnings per share (pence)                                                     
                                                                               
Basic                                                         0.22             


Notes to the financial statements

1. Basis of preparation

The results for the Company for the six months ended 31 March 2008 are
unaudited and have been prepared in accordance with International Financial
Reporting Standards.

The financial statements contained in this report do not constitute statutory
accounts.

2. Earnings per share

The calculation of basic earnings per share is based on the profit after tax of
�66,576 and on 30,005,000 ordinary shares being the weighted average number of
ordinary shares in issue during the period.

3. Dividend

The directors do not recommend the payment of a dividend.

The Directors of China Changfa Alumina Recycling Limited accept responsibility
for this announcement.

For further information please contact:

Carol Chen
London Asia Corporate Finance
Tel: +852 2251 8373



END

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