China North East Petroleum Announces Dismissal of Lawsuit

China North East Petroleum Holdings Limited NEP, a leading independent oil producing and oilfield services company in Northern China, today announced that on Friday, May 27th, the Clerk of the United States District Court for the Southern District of New York entered Judgment dismissing the consolidated shareholder derivative action against NEP and certain of its current and former officers and directors. Three shareholder derivative actions were originally filed in June and August 2010.  The Court subsequently consolidated the three actions and plaintiffs filed a consolidated amended complaint on February 22, 2011 asserting breach of duty claims based on the circumstances that led to the 2010 restatements of the Company's 2008 10-Qs and 10-K and 2009 10-Qs.  Motions to dismiss the consolidated amended complaint were filed by the defendants in the action and the action was dismissed by the order of the United States District Judge for the Southern District of New York on May 26, 2011.