Hanwei Subsidiary Harvest Secures Credit Facility to Fund FRP Pipe Production Expansion

Vancouver, BC, July 7, 2008. Hanwei Energy Services Corp. ("Hanwei" or the "Company") announced today that its subsidiary, Daqing Harvest Longwall High Pressure FRP Pipe Co. Ltd. ("Harvest"), has secured a credit facility from China Construction Bank for up to RMB100 million or approximately $15 million. The term of the facility is one year and carries an effective annual interest rate of 8.62%. The credit facility is secured by Harvest's account receivables.

The funds available from the facility will be used to expand annual FRP (fibreglass reinforced plastic) pipe production capacity at Hanwei's Daqing facility from the current 3,200 km to 4,600 km. The expansion will include a total of up to eight new lines, as well as facilities to develop larger diameter high pressure FRP pipe to be used in a wider scope of potential applications including down hole oil field casing, petrochemical plants, and fire protection systems. The estimated budget for the additional lines, building, and facilities is RMB 35 million (or approximately $5.2 million) with completion and commissioning expected in the third quarter of 2008.

The increased production capacity is being added to satisfy growing demand for Hanwei's FRP products in China and Kazakhstan. The Company currently has over RMB170 million (or approximately $25 million) of confirmed pipe sales orders.

"Demand for our FRP pipe continues to outpace our production capacity," stated Fulai Lang, President and CEO of Hanwei. "With the funding in place for our expansion in Daqing and a very strong order book, we expect to meet or potentially exceed our 70% annual sales growth target for our FRP pipe business."

Harvest is 91% owned by Hanwei. The remaining 9% is owned by Daqing Changyuan Investment Co. Ltd., an indirect subsidiary of China National Petroleum Corp., a Chinese state-owned entity and the parent company of PetroChina Co., Ltd., a major Chinese oil and gas company listed on the New York Stock Exchange (NYSE: PTR).

About Hanwei Energy Services Corp.
Hanwei Energy Services Corp. provides high value products and services for the energy sector in China and the Asia region. Hanwei serves its major energy customers through manufacturing facilities in China, producing products for the oil, coal power and wind power industries. Hanwei is focusing on providing products and services that address the growing need for improved energy efficiency and environmental protection in China and the Asia region. www.hanweienergy.com


For more information please contact:
Kim Oishi, Senior Vice President of Finance and Business Development
416-804-9228
koishi@hanweienergy.com

Or

Kevin O'Connor, Investor Relations
416-962-3300
koconnor@genoa.ca


FORWARD LOOKING INFORMATION

Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes information relating to the use of the funds available from the credit facility, the demand for Hanwei's FRP pipe products in China and Kazakhstan, Hanwei's annual sales growth target for its FRP pipe business, Hanwei's FRP pipe production capacity, the expansion of FRP pipe production capacity at Hanwei's Daqing facility, and the expansion of Hanwei's product line to include production capacity for large diameter (24") FRP pipe. The forward-looking information in this news release describes Hanwei's expectations as of the date of this news release. The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors or risks which could cause actual results or events to differ materially from a conclusion in such forward-looking information include the risks that Hanwei may not be able to complete the credit facility from China Construction Bank, the demand for Hanwei's FRP pipe may not continue to outpace its production capacity, Hanwei's annual sales growth for its FRP pipe business may not continue, Hanwei may not be able to expand its FRP pipe production capacity at its Daqing facility, Hanwei may not be able to expand its product line to include production capacity for large diameter FRP pipe, Hanwei may not be able to obtain any required approvals to expand its production capacity or product line such approvals may be subject to conditions that are unacceptable, Hanwei may not be able to effectively manage the expansion of its operations, Hanwei may not be able to negotiate favourable pricing terms for additional supplies, supply chain issues or changes in technology or product requirements may cause delays in the delivery of products, Hanwei depends on its intellectual property and the failure to protect that property may adversely affect future growth, Hanwei faces significant competition and seasonal fluctuations in revenues, there may be insufficient insurance for its operations, changes in costs of raw materials or energy may adversely affect operating margins, profit margins may be impacted by price inflation, operations are subject to environmental risks and hazards, exchange rates fluctuate, and there are specific risks associated with doing business in China (including those related to state ownership, government intervention, foreign investment, repatriation of profit, currency conversion, shareholders' rights and enforcement of judgments, a developing legal system, recent regulations relating to cross- border mergers and acquisitions, protection of intellectual property, permits and business licenses, appropriation, tax, infrastructure and interest rate fluctuations). When relying on Hanwei's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Hanwei cautions that the foregoing list of material factors is not exhaustive and is subject to change. For additional information with respect to certain of these and other factors, refer to the risk factors section of Hanwei's Annual Information Form dated April 3, 2008 filed with Canadian securities regulators, which is available on SEDAR at www.sedar.com.

Hanwei has included in this news release figures based on orders received, which is a non- GAAP measure. Readers are cautioned that orders received is not a recognized measure under Canadian GAAP and should not be construed to be an indicator of performance or liquidity or cash flows. Hanwei's method of calculating this measure may differ from the method used by other entities and accordingly Hanwei's measure may not be comparable to those used by other entities. Hanwei uses these figures because management has a high degree of confidence that the orders received will represent sales and it believes such figures provide a useful indication of Hanwei's progress.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF HANWEI AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE HANWEI MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.