On April 26， 2011， a MEmber of the Audit Committee of the Board of Directors of China Integrated Energy， Inc. (the "Company") received a letter from KPMG confirming that the client-auditor relationship with the Company ceased (the "April 26 Letter"). In a subsequent letter， dated April 27， 2011， the substance of which IS diSClosed in response to Item 4.02(b) below， KPMG confirmed that it had resigned as of its April 26 Letter and such resignation was effective immediately (the "April 27 Letter").

The audit report of KPMG on the financial statements of the Company for the year ended December 31， 2010， does not contain any adverse opinion or disclaimer of opinion， and was not qualified or modified as to uncertainty， audit scope or accounting principles.

From December 16， 2010， when KPMG was engaged， through KPMG's resignation on April 26， 2011， there were no disagreements between the Company and KPMG on any matter of accounting principles or practices， financial statement disclosure， or auditing scope or procedures， which disagreements， if not resolved to the satisfaction of KPMG would have caused KPMG to make reference to the subject matter of the disagreements in connection with its reports. As disclosed below in Item 4.02(b) below， there was a reportable event as described under Item 304(a)(1)(v)(B) which， according to the April 27 Letter， led to KPMG's resignation. Other than set forth above and disclosed under Item 4.02(b)， there were no other disagreements or reportable events as described under Item 304(a)(1) of Regulation S-K.

The Company provided a copy of this disclosure to KPMG and an opportunity to furnish the Company with a letter stating whether it agrees or disagrees with the statements made by the Company herein in response to Item 304(a) of Regulation S-K.