China Keli signs Sales Agreement in Guizhou Province

VANCOUVER, June 21, 2011 /CNW/ - China Keli Electric Company Ltd. (TSX-V: ZKL) ("China Keli" or the "Company") is pleased to announce it has recently signed a sales agreement with the Xingren County Power Supply Bureau of Guizhou Province. This contract worth RMB 1.38million (~CAD$210,000) is for the supply of a complete high/low-voltage switchgear. This switchgear is to be used as part of the Xingren Bureau's power distribution works. This contract, from a new government customer, is China Keli's first order for complete high/low-voltage switchgear in the Guizhou market.

"This order marks another step forward in our expansion into new market geographies," said Lou Meng Cheong, China Keli's CEO, "It also an indication of the market's acceptance of our complete high/low voltage switchgear sets."

"We recently targeted Guizhou Province and have been rewarded with some initial orders," said Madame Wong, Chairperson of China Keli, "Power distribution is still our core market sector and this is where we've scored our early success in Guizhou.  We expect this to lead to further orders here."

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) Xingren Power Bureau will purchase a minimum of RMB 1.38 million of equipment from the Company, (ii) the Company can expect any further orders in Guizhou 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 Xingren Power Bureau to fulfill their obligations under the contract, or on the terms set out above or at all, (2) a downturn in general economic conditions in China or internationally, (3) inability to manufacture the products as demanded by Xingren Power Bureau; 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.


SOURCE China Keli Electric Company Ltd.

For further information:

Scott Koyich, President
Brisco Capital Partners
(403) 262-9888
skoyich@briscocapital.com

Or

Michael Raymont
EVP Finance and Corporate Development
(403) 389-3488
mraymont@zkl.com

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China Keli Electric Company Ltd.

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