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China Keli Receives Additional Provincial Approvals and Municipal Recognition

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^{Published in Science and Technology on Wednesday, July 6th 2011 at 6:05 GMT by Market Wire}  

VANCOUVER, July 6, 2011 /CNW/ - China Keli Electric Company Ltd. (TSXV: ZKL) ("China Keli" or the "Company") is pleased to announce it has become a Qualified Supplier to the Hunan Provincial Power Grid Company.  In order to win supply contracts with provincial power grid companies, manufacturers like China Keli must become "Qualified Suppliers" in the appropriate jurisdiction.  China Keli now becomes eligible to supply control systems, high/low-voltage switchgear and other high voltage equipment in Hunan Province.

At the municipal level, China Keli was recently recognized by the Zhuhai National Hi-tech Industrial Development Zone (ZHIZ), and presented with a RMB300,000 (~CAD$ 45,000) prize as a winner of the 2010 Year ZHIZ's Social and Economic Development Awards.  In addition, Mr. Lou Meng Cheong, the Company's CEO received an award of RMB100000 (~CAD$15,000).  ZHIZ made its decisions based on the concurrence of China Keli's strategy and product line-up with the PRC's 12^th 5 Year Plan which emphasizes, amongst other things, "enhancing the construction of Smart Grid industry chain".

"Qualified Supplier status in another Province gives us additional opportunities to sell our products against limited competition", said Lou Meng Cheong, China Keli's CEO, "Hunan Province has awarded us the right to supply them with some of our key products".

"Our strategy fits perfectly with one of the objectives of China's 12^th 5 Year Plan", said Madame Wong, Chairperson of China Keli, "Building a reliable smart electrical power grid is a critically important step in China's continuing industrialization and urbanization.  I'm proud that China Keli has been recognized for its contributions to this important objective".

About China Keli Electric Company Ltd.

China Keli is a hi-tech company that develops, manufactures and installs hi-voltage electrical components and equipment, including preassembled mini-substations, electrical controllers, pressurized/vacuumed switchgears and circuit breakers in the People's Republic of China.  China Keli's markets include electrical transmission and distribution systems, Smart Grid, and the transportation sector (railways, subways, street lighting, etc.)

ON BEHALF OF THE BOARD OF DIRECTORS

Mr. Lou Meng Cheong
CEO
Phone:  604.270.2345

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.

Legal Notice Regarding Forward Looking Statements: Certain statements in this news release are forward-looking statements, which reflect the expectations of management regarding the Company's ability to close the Offering. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future, and in this news release include: (i) Hunan Provincial Power Grid Company will purchase any equipment from the Company, (ii) the Company can expect any orders from Hunan Province.  Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect, wholly or partially. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) the inability or unwillingness of Hunan Provincial Power Grid Company to purchase equipment from the Company, or terms of such purchases cannot be agreed, (2) a downturn in general economic conditions in China or internationally, (3) inability to manufacture the products as demanded by Hunan Provincial Power Grid Company; and (4) fluctuation in the exchange rate between Canadian dollar and Renminbi. These forward-looking statements are made as of the date of this news release and, except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the Company's MD&A filed with Canadian securities regulators.