OREANDA-NEWS. October 29, 2012. Longwei Petroleum Investment Holding Ltd. (NYSE MKT: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), has completed an independent appraisal of the assets purchased from Huajie Petroleum Co., Ltd. ("Huajie") and received the official asset ownership registration documents from the local government.

Longwei contracted Shanxi Wan Jia Assets Appraisal LLP ("Shanxi Wan Jia") to inspect and perform an independent valuation report of the Huajie assets purchased on September 26, 2012. The updated appraisal value of the Huajie assets was RMB 752,066,600 (approximately USD 119.4 million), a 7.5% increase in value over the purchase price. The updated valuation report is also an increase of approximately USD 3.5 million from the February 13, 2011 independent valuation report of RMB 730,113,500 (approximately USD 115.9 million), due to the increase in the real estate value. Shanxi Wan Jia is a certified member of the China Appraisal Society.
"The updated appraisal shows the additional value we received in the Huajie asset purchase," said Cai Yongjun, Chairman and Chief Executive Officer of Longwei. "We are pleased to have closed on the Huajie asset purchase using our own cash resources without dilution to our shareholders, and we are now fully operational at the facility."

The Huajie facility nearly doubles Longwei's storage capacity to a total of 220,000 metric tons and extends the Company's reach into the fast-growing industrial region of northern Shanxi Province. The purchased assets include fuel storage tanks with a 100,000-metric-ton capacity with accessory facilities and equipment, delivery and distribution platforms, including a dedicated rail spur, and a vehicle loading and unloading station. The purchase also included a 3,000-square-meter office building and land use rights for 98 acres of land adjacent to the main regional rail line. The Company has posted the updated appraisal report to its corporate website at http://www.longweipetroleum.com/operations/storage-operations.

The document can be seen in the "Operations" section of the website under the description of the Huajie Facility.

"We are committed to continuing to improve our level of transparency and disclosure with our shareholders," stated Mr. Cai. "We have recently achieved several milestones that we hope will be catalysts to boost shareholders' confidence in our Company and lead to an improved earnings multiple that reflects our operating performance.

"We believe our fair value is higher than currently reflected in our stock price, especially when compared to our book value," continued Mr. Cai. "Longwei has a straightforward business model, highly visible assets, and strong and stable business operations. We will continue to do our best to fully communicate the value of the Company's assets and operations to the market."
Longwei has also received the official asset ownership registration documents from the local government, as approved by the Shanxi Province, Fanshi County Administration for Industry and Commerce.

Longwei recently reported revenues of USD 510.6 million and net income of USD 65.1 million for the fiscal year ended June 30, 2012. At the June 30, 2012 fiscal year-end, the Company reported total assets of USD 342.3 million and a book value per share of USD 3.31.