On August 23, 2012, NASDAQ Listing Qualifications staff (Staff) notified
SmartHeat, Inc. (Company) that it determined to delist the Company based
on Rule 5101.  On August 29, 2012, the Company exercised its right to
appeal the Staffs determination to the Listing Qualifications Hearings
Panel (Panel) pursuant to Rule 5815.  A Panel hearing was held on
October 11, 2012.  On November 7, 2012, the Panel issued a decision that
affirmed Staffs determination to delist the Company.  On November 19, 2012,
the Company exercised its right to appeal the November 7, 2012 Panel
decision to the Nasdaq Listing and Hearing Review Council (Council)
pursuant to Rule 5820(a).  On February 25, 2013, the Council issued a
decision that affirmed the November 7, 2012 Panel decision to delist the
Companys securities.  On August 5, 2013, the Company was provided notice
that the Nasdaq Board of Directors declined to call the Council decision
for review pursuant to Rule 5825(a).