<SEC-DOCUMENT>0001144204-12-030753.txt : 20120521
<SEC-HEADER>0001144204-12-030753.hdr.sgml : 20120521
<ACCEPTANCE-DATETIME>20120521061715
ACCESSION NUMBER:		0001144204-12-030753
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20120615
FILED AS OF DATE:		20120521
DATE AS OF CHANGE:		20120521
EFFECTIVENESS DATE:		20120521

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Recon Technology, Ltd
		CENTRAL INDEX KEY:			0001442620
		STANDARD INDUSTRIAL CLASSIFICATION:	OIL, GAS FIELD SERVICES, NBC [1389]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			E9
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-34409
		FILM NUMBER:		12857034

	BUSINESS ADDRESS:	
		STREET 1:		ROOM 1902, BUILDING C,
		STREET 2:		KING LONG INTL MANSION, NO. 9 FULIN ROAD
		CITY:			BEIJING
		STATE:			F4
		ZIP:			100107
		BUSINESS PHONE:		025-52313015

	MAIL ADDRESS:	
		STREET 1:		ROOM 1902, BUILDING C,
		STREET 2:		KING LONG INTL MANSION, NO. 9 FULIN ROAD
		CITY:			BEIJING
		STATE:			F4
		ZIP:			100107
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>v313681_def14a.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SCHEDULE 14A INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Proxy Statement Pursuant to Section
14(a) of the<BR>
Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 30%">Filed by the Registrant</TD>
    <TD STYLE="width: 69%; font-family: Wingdings">&uml;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Wingdings">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Filed by a Party other than the Registrant</TD>
    <TD STYLE="font-family: Wingdings">&uml;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Wingdings">&uml;</TD>
    <TD STYLE="width: 94%">Preliminary Proxy Statement</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Wingdings">&uml;</TD>
    <TD>Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Wingdings">x</TD>
    <TD>Definitive Proxy Statement</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Wingdings">&uml;</TD>
    <TD>Definitive Additional Materials</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Wingdings">&uml;</TD>
    <TD>Soliciting Material Pursuant to Rule 14a-12</TD></TR>
</TABLE>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">RECON TECHNOLOGY, LTD</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Name of Registrant as Specified in Its
Charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Name of Person(s) Filing Proxy Statement,
if other than the Registrant)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Payment of Filing Fee (Check the appropriate box):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Wingdings">x</TD>
    <TD STYLE="width: 94%">No fee required.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Wingdings">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Wingdings">&uml;</TD>
    <TD>Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%">&nbsp;</TD>
    <TD STYLE="width: 3%">(1)</TD>
    <TD STYLE="width: 91%">Title of each class of securities to which transaction applies:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(2)</TD>
    <TD>Aggregate number of securities to which transaction applies:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(3)</TD>
    <TD>Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount
    on which the filing fee is calculated and state how it was determined):</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(4)</TD>
    <TD>Proposed maximum aggregate value of transaction:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(5)</TD>
    <TD>Total fee paid:</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Wingdings">&uml;</TD>
    <TD STYLE="width: 94%">Fee paid previously with preliminary materials.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Wingdings">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Wingdings">&uml;</TD>
    <TD>Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which
    the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule
    and the date of its filing.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%">&nbsp;</TD>
    <TD STYLE="width: 3%">(1)</TD>
    <TD STYLE="width: 91%">Amount Previously Paid:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(2)</TD>
    <TD>Form, Schedule or Registration Statement No.:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(3)</TD>
    <TD>Filing Party:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(4)</TD>
    <TD>Date Filed:</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">RECON TECHNOLOGY, LTD<BR>
1902 BUILDING C</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">KING LONG INTERNATIONAL MANSION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">9 FULIN ROAD</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">BEIJING 100107 CHINA</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">PROXY STATEMENT AND NOTICE OF<BR>
2012 ANNUAL MEETING OF SHAREHOLDERS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 55%; font-style: italic">To the shareholders of<BR> Recon Technology, Ltd</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 44%; font-style: italic; text-align: right">May 21, 2012<BR> Beijing, China</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To our shareholders:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 15pt">It is my pleasure to invite you to our 2012
Annual Meeting of Shareholders on June 15, 2012, at 9:00 a.m., Beijing Time. The meeting will be held at Room 1801, King Long
International Mansion, 9 Fulin Road, Beijing, China.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 15pt">The matters to be acted upon at the meeting
are described in the Notice of 2012 Annual Meeting of Shareholders and Proxy Statement. At the meeting, we will also report on
the Company&rsquo;s performance and operations during the fiscal year ended June 30, 2011 and respond to shareholder questions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 15pt"><B>YOUR VOTE IS VERY IMPORTANT. WHETHER
OR NOT YOU PLAN TO ATTEND THE ANNUAL MEETING OF SHAREHOLDERS, WE URGE YOU TO VOTE AND SUBMIT YOUR PROXY BY TELEPHONE, THE INTERNET
OR BY MAIL. IF YOU ARE A REGISTERED SHAREHOLDER AND ATTEND THE MEETING, YOU MAY REVOKE YOUR PROXY AND VOTE YOUR SHARES IN PERSON.
IF YOU HOLD YOUR SHARES THROUGH A BANK OR BROKER AND WANT TO VOTE YOUR SHARES IN PERSON AT THE MEETING, PLEASE CONTACT YOUR BANK
OR BROKER TO OBTAIN A LEGAL PROXY. THANK YOU FOR YOUR SUPPORT.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 15pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%">&nbsp;</TD>
    <TD STYLE="width: 40%">By order of the Board of Directors,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid">/s/ Yin Shenping</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Yin Shenping</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Chairman and Chief Executive Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">NOTICE OF ANNUAL MEETING<BR>
OF SHAREHOLDERS<BR>
RECON TECHNOLOGY, LTD<BR STYLE="mso-special-character: line-break">
<BR STYLE="mso-special-character: line-break"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 20%"><B>TIME:</B></TD>
    <TD STYLE="width: 80%"><FONT STYLE="font-weight: normal">9:00 a.m., Beijing Time, on June 15, 2012</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><B>PLACE:</B></TD>
    <TD><FONT STYLE="font-weight: normal">Room 1801, King Long International Mansion, 9 Fulin Road, Beijing, China </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">ITEMS OF BUSINESS:</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-weight: normal">(1)</FONT></TD><TD><FONT STYLE="font-weight: normal">To
                                                                                                          elect two Class II members
                                                                                                          of the Board of Directors,
                                                                                                          to serve terms expiring
                                                                                                          at the Annual Meeting
                                                                                                          of Shareholders following
                                                                                                          the fiscal year ending
                                                                                                          June 30, 2014, or until
                                                                                                          his successor is duly
                                                                                                          elected and qualified;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-weight: normal">(2)</FONT></TD><TD><FONT STYLE="font-weight: normal">To
                                                                                                          ratify the appointment
                                                                                                          of Friedman LLP as the
                                                                                                          Company&rsquo;s independent
                                                                                                          registered public accounting
                                                                                                          firm for the fiscal
                                                                                                          year ending June 30,
                                                                                                          2012; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-weight: normal">(3)</FONT></TD><TD><FONT STYLE="font-weight: normal">To
                                                                                                          transact any other business
                                                                                                          properly coming before
                                                                                                          the meeting.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 20%"><B>WHO MAY VOTE:</B></TD>
    <TD STYLE="width: 80%"><FONT STYLE="font-weight: normal">You may vote if you were a shareholder of record on May 7, 2012.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><B>ANNUAL REPORT:</B></TD>
    <TD><FONT STYLE="font-weight: normal">A copy of our 2011 Annual Report on Form 10-K is enclosed</FONT>.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><B>DATE OF MAILING:</B></TD>
    <TD><FONT STYLE="font-weight: normal">This notice and the proxy statement are first being mailed to shareholders on or about
    May 21, 2012.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -1.5in"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%">&nbsp;</TD>
    <TD STYLE="width: 40%">By order of the Board of Directors,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid">/s/ Yin Shenping</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Yin Shenping,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Chairman and Chief Executive Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">ABOUT THE 2012 ANNUAL MEETING OF SHAREHOLDERS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What am I voting on? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">You will be voting on the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-weight: normal">(1)</FONT></TD><TD><FONT STYLE="font-weight: normal">To
                                                                                                          elect two Class II members
                                                                                                          of the Board of Directors,
                                                                                                          to serve terms expiring
                                                                                                          at the Annual Meeting
                                                                                                          of Shareholders following
                                                                                                          the fiscal year ending
                                                                                                          June 30, 2014, or until
                                                                                                          his successor is duly
                                                                                                          elected and qualified;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-weight: normal">(2)</FONT></TD><TD><FONT STYLE="font-weight: normal">To
                                                                                                          ratify the appointment
                                                                                                          of Friedman LLP as the
                                                                                                          Company&rsquo;s independent
                                                                                                          registered public accounting
                                                                                                          firm for the fiscal
                                                                                                          year ending June 30,
                                                                                                          2012; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-weight: normal">(3)</FONT></TD><TD><FONT STYLE="font-weight: normal">To
                                                                                                          transact any other business
                                                                                                          properly coming before
                                                                                                          the meeting.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Who is entitled to vote? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">You may vote if you owned ordinary shares
of the Company as of the close of business on May 7, 2012. Each ordinary share is entitled to one vote. As of May 7, 2012, we
had 3,951,811 ordinary shares outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>How do I vote before the meeting? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If you are a registered shareholder, meaning
that you hold your shares in certificate form, you have three voting options:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(1)</TD><TD>By Internet, which we encourage if you have Internet access,
                                                                 at the address shown on your proxy card;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(2)</TD><TD>By phone, at 1-800-690-6903 using any touch-tone telephone
                                                                 to transmit your voting instructions; or</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(3)</TD><TD>By mail, by completing, signing and returning the enclosed
                                                                 proxy card.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If you hold your shares through an account
with a bank or broker, your ability to vote by the Internet depends on their voting procedures. Please follow the directions that
your bank or broker provides.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>May I vote at the meeting? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If you are a shareholder of record, you
may vote in person at the meeting. If you hold your shares through an account with a bank or broker, please follow the directions
provided to you by your bank or broker. If you wish to vote in person at the meeting, please contact your bank or broker to learn
the procedures necessary to allow you to vote your shares in person. Even if you plan to attend the meeting, we encourage you
to vote your shares by proxy. You may vote by proxy through the Internet, by telephone or by mail.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Can I change my mind after I return my proxy? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">You may change your vote at any time before
the polls close at the conclusion of voting at the meeting. You may do this by (1) signing another proxy card with a later date
and returning it to us prior to 9:00 p.m., Eastern Time, on June 12, 2012, (2) voting again over the Internet prior to 9:00 p.m.,
Eastern Time, on June 12, 2012, (3) voting again via the telephone prior to 9:00 p.m., Eastern Time, on June 12, 2012, or (4)
voting at the meeting if you are a registered shareholder or have followed the necessary procedures required by your bank or broker.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What if I return my proxy card but do not provide voting
instructions? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Proxies that are signed and returned but
do not contain instructions will be voted (1) FOR the election of the Class II director nominees; (2) FOR the ratification of
Friedman LLP as the Company&rsquo;s independent registered public accounting firm for the fiscal year ending June 30, 2012; and
(3) in accordance with the best judgment of the named proxies on any other matters properly brought before the meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What does it mean if I receive more than one proxy card
or instruction form? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">It indicates that your ordinary shares
are registered differently and are in more than one account. To ensure that all shares are voted, please either vote each account
by telephone or on the Internet, or sign and return all proxy cards. We encourage you to register all your accounts in the same
name and address. Those holding shares through a bank or broker should contact their bank or broker and request consolidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Will my shares be voted if I do not provide my proxy or
instruction form? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If you are a registered shareholder and
do not provide a proxy, you must attend the meeting in order to vote your shares. If you hold shares through an account with a
bank or broker, your shares may be voted even if you do not provide voting instructions on your instruction form. Brokerage firms
have the authority to vote shares for which their customers do not provide voting instructions on certain routine matters. The
ratification of Friedman LLP as the Company&rsquo;s independent registered public accounting firm for the fiscal year ending June
30, 2012 is considered a routine matter for which brokerage firms may vote without specific instructions. However, election of
directors is no longer considered a routine matter for which brokerage firms may vote without specific instructions. When a proposal
is not a routine matter and the brokerage firm has not received voting instructions from the beneficial owner of the shares with
respect to that proposal, the brokerage firm cannot vote the shares on that proposal. Shares that a broker is not authorized to
vote are counted as &ldquo;broker non-votes.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>How can I attend the meeting? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The meeting is open to all holders of the
Company&rsquo;s ordinary shares as of May 7, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>May shareholders ask questions at the meeting? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Yes. Representatives of the Company will
answer questions of general interest at the end of the meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>How many votes must be present to hold the meeting? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Your shares are counted as present at the
meeting if you attend the meeting and vote in person or if you properly return a proxy by Internet, telephone or mail. In order
for us to conduct our meeting, one-third (1/3) of our outstanding ordinary shares as of May 7, 2012 must be present in person
or by proxy. This is referred to as a quorum. Abstentions and broker non-votes will be counted for purposes of establishing a
quorum at the meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>How many votes are needed to approve the Company&rsquo;s
proposals? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Proposal 1.&nbsp;&nbsp;The nominees receiving
the highest number of &ldquo;For&rdquo; votes will be elected as directors. This number is called a plurality. Shares not voted
will have no impact on the election of directors. The proxy given will be voted &ldquo;For&rdquo; each of the nominees for director
unless a properly executed proxy card is marked &ldquo;Withhold&rdquo; as to a particular nominee or nominees for director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Proposal 2.&nbsp;&nbsp;The ratification
of the appointment of Friedman LLP as the Company&rsquo;s independent registered public accounting firm for the fiscal year ending
June 30, 2012 requires that a majority of the votes cast at the meeting be voted &ldquo;For&rdquo; the proposal. A properly executed
proxy card marked &ldquo;Abstain&rdquo; with respect to this proposal will not be voted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROPOSAL ONE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ELECTION OF DIRECTORS AND DIRECTOR BIOGRAPHIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(ITEM 1 ON THE PROXY CARD)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A brief biography of each Director in each
Class follows. You are asked to vote for nominees to serve as Class II members of the Board of Directors. All candidates for the
Board have consented to serve if elected. The terms of the Class III members of the Board of Directors continue until the Annual
Meeting of Shareholders following the fiscal year ending June 30, 2012 and the terms of the Class I members of the Board of Directors
continue until the Annual Meeting of Shareholders following the fiscal year ending June 30, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Nominees for election as Class II members of the Board of
Directors to serve three-year terms: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Hu Jijun<BR>
</B>Independent Director <FONT STYLE="color: black">Nominee<BR>
</FONT>Age&nbsp;&ndash;&nbsp;46</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Director since 2008</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Mr.&nbsp;Hu joined our Board of Directors
in 2008. From 1988 to 2003, Mr.&nbsp;Hu served in a variety of positions at our No.&nbsp;2 test-drill plant, including technician
of installation, assets equipment work, electrical installation, control room production dispatcher, Deputy Chief Engineer of
the Technology Battalion, and Deputy Director of Production. From 2003 to 2005 he served as Head of the Integrated Battalion and
he is currently the Head of the Transport Battalion, Senior Electric Engineer. Mr.&nbsp;Hu graduated as an automated professional
from the China University of Petroleum in 1988. Mr.&nbsp;Hu has been chosen as a director because we believe his years of experience
and knowledge gained while working at our No.&nbsp;2 test-drill plant will prove beneficial to the guidance of our company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Nelson N.S. Wong</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Independent Director <FONT STYLE="color: black">Nominee</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Age &ndash; 49</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Director since 2008</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Mr.&nbsp;Wong joined our Board of Directors
in 2008. In 1990 Mr.&nbsp;Wong joined the Vigers Group, a real estate company that provides services in valuation, corporate property
services, investment advisory services, general practice surveying, building surveying, commercial, retail and industrial agency,
and property and facilities management. Mr.&nbsp;Wong became the Vice Chairman and CEO of the Vigers Group in 1993. In 1995 Mr.&nbsp;Wong
established the ACN Group, a business consulting firm, where he has worked continuously and continues to serve as the Chairman
and Managing Partner. Mr.&nbsp;Wong received a bachelor&rsquo;s degree in arts from the PLA Institute of International Relations
in Nanjing in 1983. Mr.&nbsp;Wong has been chosen as a director because we believe we can benefit from his leadership skills and
management experience.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Class III members of the Board of Directors whose terms
continue to the Annual Meeting of Shareholders following the fiscal year ending June 30, 2012: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Yin Shenping<BR>
</B>Chief Executive Officer and Director<BR>
Age&nbsp;&ndash;&nbsp;42</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Director since 2007</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In 2003 Mr.&nbsp;Yin founded Nanjing Recon,
a Chinese company that provides services to automate and enhance the extraction of petroleum in the PRC, and has been the Chief
Executive Officer since that time. Prior to founding Nanjing Recon, Mr.&nbsp;Yin served as a sales manager for Fujian Haitian
Network Company from 1992 through 1994. Mr.&nbsp;Yin has founded and operated a number of companies: Xiamen Hengda Haitian Computer
Network Co., Ltd. (1994), Baotou Hengda Haitian Computer Network Co., Ltd. (1997)&nbsp;and Beijing Jingke Haitian Electronic Technology
Development Co., Ltd. (1999), and Jingsu Huasheng Information Technology Co., Ltd. (2000). In 2000, Mr.&nbsp;Yin merged the former
Nanjing Kingsley Software Engineering Co., Ltd. into Nanjing Recon. Mr.&nbsp;Yin received his bachelor&rsquo;s degree in 1991
from Nanjing Agricultural University in information systems. Mr.&nbsp;Yin has been chosen as a director because he is one of the
founders of our company and we believe his knowledge of our company and years of experience in our industry give him the ability
to guide our company as a director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Chen Guangqiang<BR>
</B>Chief Technology Officer and Director<BR>
Age&nbsp;&ndash;&nbsp;48</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Director since 2007</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Mr. Chen has served as our Chief Technology
Officer since 2003. Mr. Chen was a geological engineer for the Fourth Oil Extraction Plant of Huabei Oil Field from 1985 through
1993. From 1993 through 1999, Mr. Chen was a chief engineer for Xinda Company, CNPC Development Bureau. From 1999 through 2003,
Mr. Chen served as the general manager of Beijing Adar. Mr. Chen received his bachelor&rsquo;s degree in 1985 from Southwest Petroleum
Institute. Mr. Chen has been chosen as a director because he is one of the founders of our company and we believe we can benefit
from his years of engineering experience and management experience in the oil extraction industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Class I members of the Board of Directors whose terms continue
to the Annual Meeting of Shareholders following the fiscal year ending June 30, 2013: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Zhao Shudong</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Independent Director</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Age &ndash; 65</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36.7pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36.7pt">Before retiring in 2006, Mr.&nbsp;Zhao
spent over 30 years working in the oilfield industry. From 1970 to 1976, Mr.&nbsp;Zhao worked as a technician in the Daqing oilfield.
From 1976 to 1982, Mr.&nbsp;Zhao served as the vice director of the Hubei Oilfield Generalized Geologic Technical Research Institute.
Mr.&nbsp;Zhao then spent 11 years as a director and section chief at the Scientific and Technological Development Department of
the Huabei Petroleum Administrative Bureau. He was subsequently appointed Chief Geologist of the bureau, a position he held from
1993 to 1999. From 1999 to 2006, Mr.&nbsp;Zhao served as the General Manager of the Huabei Oilfield Company of CNPC. Mr.&nbsp;Zhao
studied at the Northeast Petroleum Institute from 1965 to 1970. Mr.&nbsp;Zhao has been chosen as a director nominee because of
his extensive experience in the oilfield industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Mr.&nbsp;Chen has served as our Chief Technology
Officer since 2003. Mr.&nbsp;Chen was a geological engineer for the Fourth Oil Extraction Plant of Huabei Oil Field from 1985
through 1993. From 1993 through 1999, Mr.&nbsp;Chen was a chief engineer for Xinda Company, CNPC Development Bureau. From 1999
through 2003, Mr.&nbsp;Chen served as the general manager of Beijing Adar. Mr.&nbsp;Chen received his bachelor&rsquo;s degree
in 1985 from Southwest Petroleum Institute. Mr.&nbsp;Chen has been chosen as a director because he is one of the founders of our
company and we believe we can benefit from his years of engineering experience and management experience in the oil extraction
industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Involvement in Certain Legal Proceedings </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To the best of our knowledge, none of our
directors or executive officers has been convicted in a criminal proceeding, excluding traffic violations or similar misdemeanors,
or has been a party to any judicial or administrative proceeding during the past ten years that resulted in a judgment, decree
or final order enjoining the person from future violations of, or prohibiting activities subject to, federal or state securities
laws, or a finding of any violation of federal or state securities or commodities laws, any laws respecting financial institutions
or insurance companies, any law or regulation prohibiting mail or wire fraud in connection with any business entity or been subject
to any disciplinary sanctions or orders imposed by a stock, commodities or derivatives exchange or other self-regulatory organization,
except for matters that were dismissed without sanction or settlement. None of our directors, director nominees or executive officers
has been involved in any transactions with us or any of our directors, executive officers, affiliates or associates which are
required to be disclosed pursuant to the rules and regulations of the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Family Relationships</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There are no family relationships among
any of our directors or executive officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Board Leadership Structure</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Mr.&nbsp;Yin Shenping currently holds both
the positions of Chief Executive Officer and Chairman of the Board. The Board of Directors believes that Mr. Yin&rsquo;s service
as both Chief Executive Officer and Chairman of the Board is in the best interests of the Company and its shareholders. Mr. Yin
possesses detailed and in-depth knowledge of the issues, opportunities and challenges facing the Company and its business and
is thus best positioned to develop agendas that ensure that the Board&rsquo;s time and attention are focused on the most critical
matters. His combined role enables decisive leadership, ensures clear accountability, and enhances the Company&rsquo;s ability
to communicate its message and strategy clearly and consistently to the Company&rsquo;s shareholders, employees, customers and
suppliers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We do not have a lead independent director
because of the foregoing reasons and also because we believe our independent directors are encouraged to freely voice their opinions
on a relatively small company board. We believe this leadership structure is appropriate because we are a smaller reporting company
that recently became listed on a public exchange; as such we deem it appropriate to be able to benefit from the guidance of Mr.&nbsp;Yin
as both our Chief Executive Officer and Chairman of the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Resignations of Messrs. Wenhui Sun and Jun Lu</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Messrs. Sun and Lu tendered their resignations
as directors from the Board of Directors of the Company, effective as at the Annual Meeting of Shareholders. Resignations of Messrs.
Sun and Lu are not due to any disagreement with the Company. The number of seats on the Board of Directors of the Company is thereby
reduced to five.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risk Oversight</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our Board of Directors plays a significant
role in our risk oversight. The Board of Directors makes all relevant Company decisions. As such, it is important for us to have
our Chief Executive Officer serve on the Board as he plays a key role in the risk oversight of the Company. As a smaller reporting
company with a small board of directors, we believe it is appropriate to have the involvement and input of all of our directors
in risk oversight matters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WE RECOMMEND THAT YOU VOTE FOR THE ELECTION
OF EACH OF THE<BR>
CLASS II NOMINEES TO THE BOARD OF DIRECTORS.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROPOSAL TWO</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>RATIFICATION OF THE APPOINTMENT OF FRIEDMAN
LLP</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(ITEM 2 ON THE PROXY CARD)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What am I voting on? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A proposal to ratify the appointment of
Friedman LLP as the Company&rsquo;s independent registered public accounting firm for the fiscal year ending June 30, 2012. The
Audit Committee of the Board of Directors has appointed Friedman LLP to serve as the Company&rsquo;s fiscal 2012 independent registered
public accounting firm. Although the Company&rsquo;s governing documents do not require the submission of this matter to shareholders,
the Board of Directors considers it desirable that the appointment of Friedman LLP be ratified by shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Has the Company changed its independent registered public
accounting firm during its two most recent fiscal years?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company&rsquo;s independent registered
public accounting firm for the fiscal years ended June 30, 2009 and 2008 was Hansen Barnett &amp; Maxwell, P.C. (&ldquo;HBM&rdquo;).
On October 13, 2009, the Board of Directors voted to dismiss HBM as its independent registered public accounting firm. This decision
was recommended by the Audit Committee and unanimously approved by the Board of Directors at a meeting called for such purpose.
HBM&rsquo;s audit reports on the financial statements of the Company for fiscal 2009 and 2008 did not contain an adverse opinion
or disclaimer of opinion; nor were such reports qualified or modified as to uncertainty, audit scope, or accounting principles.
During fiscal 2009 and 2008 and through the date of HBM&rsquo;s dismissal, the Company had no disagreements with HBM on any matter
of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if
not resolved to the satisfaction of HBM, would have caused HBM to make reference to the subject matter of such disagreements in
its report on the Company&rsquo;s financial statements for such periods. Additionally, during fiscal 2009 and 2008 and through
the date of HBM&rsquo;s resignation, there were no reportable events as defined under Item&nbsp;304(a)(1)(v) of Regulation S-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On October 15, 2009, the Company engaged
Bernstein &amp; Pinchuk LLP (&ldquo;B&amp;P&rdquo;) as its independent registered public accounting firm to audit its financial
statements. B&amp;P was the Company&rsquo;s independent registered public accounting firm for the fiscal year ended June 30, 2010.
On April 18, 2011, the practice of B&amp;P merged with Marcum LLP to form Marcum Bernstein &amp; Pinchuk LLP (&ldquo;MarcumBP&rdquo;),
whereby B&amp;P effectively resigned as the Company&rsquo;s independent registered public accounting firm and MarcumBP became
the Company&rsquo;s independent registered public accounting firm. On December 8, 2011, the Board of Directors voted to dismiss
MarcumBP as its independent registered public accounting firm. This decision was recommended by the Audit Committee and unanimously
approved by the Board of Directors at a meeting called for such purpose. MarcumBP&rsquo;s audit reports on the financial statements
of the Company for fiscal 2010 did not contain an adverse opinion or disclaimer of opinion; nor were such reports qualified or
modified as to uncertainty, audit scope, or accounting principles. During fiscal 2010 and through the date of MarcumBP&rsquo;s
dismissal, the Company had no disagreements with MarcumBP on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of MarcumBP, would have caused
MarcumBP to make reference to the subject matter of such disagreements in its report on the Company&rsquo;s financial statements
for such periods. Additionally, during fiscal 2010 and through the date of MarcumBP&rsquo;s resignation, there were no reportable
events as defined under Item&nbsp;304(a)(1)(v) of Regulation S-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On December 9, 2011, the Company engaged
Friedman LLP as its independent registered public accounting firm to audit its financial statements. The decision to engage Friedman
LLP was recommended by the Audit Committee of the Company&rsquo;s Board of Directors and was then unanimously approved by the
Company&rsquo;s Board of Directors present at a Board meeting called for such purpose. During fiscal 2011 and through the date
of the engagement of Friedman LLP, the Company did not consult with Friedman LLP regarding either (1)&nbsp;the application of
accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered
on the Company&rsquo;s financial statements, or (2)&nbsp;any matter that was either the subject of a disagreement (as defined
in Item&nbsp;304(a)(1)(iv) of Regulation S-K) or a reportable event (as defined in Item&nbsp;304(a)(1)(v) of Regulation S-K).
Prior to the engagement of Friedman LLP, Friedman LLP did not provide the Company with any written or oral advice that Friedman
LLP concluded was an important factor considered by the Company in reaching any decision as to any accounting, auditing or financial
reporting issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What services does Friedman LLP provide? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Audit services provided by Friedman LLP
for fiscal 2012 will include the examination of the consolidated financial statements of the Company and services related to periodic
filings made with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Will a representative of Friedman LLP be present at the
meeting? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">One or more representatives of Friedman
LLP will be present at the meeting. The representatives will have an opportunity to make a statement if they desire and will be
available to respond to questions from shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What if this proposal is not approved? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If the appointment of Friedman LLP is not
ratified, the Audit Committee of the Board of Directors will reconsider the appointment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WE RECOMMEND THAT YOU VOTE FOR THE RATIFICATION
OF<BR>
FRIEDMAN LLP AS THE COMPANY&rsquo;S FISCAL 2012 INDEPENDENT<BR>
REGISTERED PUBLIC ACCOUNTING FIRM.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BOARD OF DIRECTORS AND CORPORATE GOVERNANCE
INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What if a nominee is unwilling or unable to serve? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Each of the nominees listed in the Proxy
Statement has agreed to serve as a director, if elected. If for some unforeseen reason a nominee becomes unwilling or unable to
serve, proxies will be voted for a substitute nominee selected by the Board of Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>How are directors compensated? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">All directors hold office until the expiration
of their respective terms and until their successors have been duly elected and qualified. There are no family relationships among
our directors or executive officers. Officers are elected by and serve at the discretion of the Board of Directors. Employee directors
and non-voting observers do not receive any compensation for their services. Non-employee directors are entitled to receive $2,000
per Board of Directors meeting attended. In addition, non-employee directors are entitled to receive compensation for their actual
travel expenses for each Board of Directors meeting attended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Summary Director Compensation Table,
FY 2011 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid"><B>Name<SUP>(1)</SUP> &nbsp;</B></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fees&nbsp;earned<BR>
    or<BR> paid&nbsp;in&nbsp;cash</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Option<BR> Awards</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><B>Total<SUP>(2)</SUP></B></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 61%; text-align: left">Nelson N.S. Wong</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">8,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">8,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Hu Jijun</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">8,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">8,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Liao Xiaorong<SUP>(3)</SUP> &nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Zhao Shudong</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Lu Jun</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Sun Wenhui</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Dennis O. Laing<SUP>(3)</SUP> &nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">8,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">8,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 0.5in; vertical-align: super">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left; vertical-align: top"><SUP>(1)</SUP></TD>
    <TD STYLE="vertical-align: top">Compensation for our directors Yin Shenping, Chen Guangqiang and Li Hongqi, who also serve,
    or served, as executive officers, is fully disclosed in the executive compensation table.</TD></TR>
<TR>
    <TD STYLE="vertical-align: super">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top"><SUP>(2)</SUP></TD>
    <TD STYLE="vertical-align: top">None of the directors received any ordinary share awards, nonqualified deferred compensation
    earnings or non-equity incentive plan compensation in fiscal year 2011.</TD></TR>
<TR>
    <TD STYLE="vertical-align: super">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top"><SUP>(3)</SUP></TD>
    <TD STYLE="vertical-align: top">Former directors the payments to whom were made in fiscal year 2011.&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>How does the Board determine which directors are independent?
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Board of Directors reviews the independence
of each director yearly. During this review, the Board of Directors considers transactions and relationships between each director
(and his or her immediate family and affiliates) and the Company and its management to determine whether any such relationships
or transactions are inconsistent with a determination that the director is independent in light of applicable law, listing standards
and the Company&rsquo;s director independence standards. The Company believes that it maintains a majority of independent directors
who are deemed to be independent under the definition of independence provided by NASDAQ Listing Rule 5605(a)(2).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What role does the Nominating Committee play in selecting
nominees to the Board of Directors? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Two of the primary purposes of the Board&rsquo;s
Nominating Committee are (i) to develop and implement policies and procedures that are intended to ensure that the Board of Directors
will be appropriately constituted and organized to meet its fiduciary obligations to the Company and its shareholders and (ii)
to identify individuals qualified to become members of the Board of Directors and to recommend to the Board of Directors the director
nominees for the annual meeting of shareholders. The Nominating Committee is also responsible for considering candidates for membership
on the Board of Directors submitted by eligible shareholders. The Nominating Committee&rsquo;s charter is available on the Company&rsquo;s
website at www.recon.cn under Investor Relations and in print upon request. The Nominating Committee of the Company&rsquo;s Board
of Directors was the only entity or person to nominate and/or recommend any of the director nominees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Are the members of the Nominating Committee independent?
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Yes. All members of the Nominating Committee
have been determined to be independent by the Board of Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>How does the Nominating Committee identify and evaluate
nominees for director? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Nominating Committee considers candidates
for nomination to the Board of Directors from a number of sources. Current members of the Board of Directors are considered for
re-election unless they have notified the Company that they do not wish to stand for re-election. The Nominating Committee also
considers candidates recommended by current members of the Board of Directors, members of management or eligible shareholders.
From time to time the Board may engage a firm to assist in identifying potential candidates, although the Company did not engage
such a firm to identify any of the nominees for director proposed for election at the meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Nominating Committee evaluates all candidates for director,
regardless of the person or firm recommending such candidate, on the basis of the length and quality of their business experience,
the applicability of such candidate&rsquo;s experience to the Company and its business, the skills and perspectives such candidate
would bring to the Board of Directors and the personality or &ldquo;fit&rdquo; of such candidate with existing members of the
Board of Directors and management. The nominating committee does not have a specific policy in place with regard to the consideration
of diversity when identifying director nominees, however, the nominating committee does consider diversity of opinion and experience
when nominating directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What are the Nominating Committee&rsquo;s policies and procedures
for considering director candidates recommended by shareholders? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Nominating Committee will consider
all candidates recommended by shareholders. A shareholder wishing to recommend a candidate must submit the following documents
to the Secretary of the Company at Recon Technology, Ltd, Room 1902, Building C, King Long International Mansion, 9 Fulin Road,
Beijing 100107 China:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a recommendation
                                                                                                               that identifies
                                                                                                               the name and address
                                                                                                               of the shareholder
                                                                                                               and the person
                                                                                                               to be nominated;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the written
                                                                                                               consent of the
                                                                                                               candidate to serve
                                                                                                               as a director of
                                                                                                               the Company, if
                                                                                                               elected;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a description
                                                                                                               of all arrangements
                                                                                                               between the shareholders
                                                                                                               and such nominee
                                                                                                               pursuant to which
                                                                                                               the nomination
                                                                                                               is to be made;
                                                                                                               and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>such other
                                                                                                               information regarding
                                                                                                               the nominee as
                                                                                                               would be required
                                                                                                               to be included
                                                                                                               in a proxy statement
                                                                                                               filed pursuant
                                                                                                               to the proxy rules
                                                                                                               of the SEC.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If the candidate is to be evaluated by
the Nominating Committee, the Secretary will request a detailed resume, an autobiographical statement explaining the candidate&rsquo;s
interest in serving as a director of the Company, a completed statement regarding conflicts of interest, and a waiver of liability
for a background check from the candidate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What are the minimum qualifications required to serve on
the Company&rsquo;s Board of Directors? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">All members of the Board of Directors must
possess the following minimum qualifications as determined by the Nominating Committee:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>A director
                                                                                                               must demonstrate
                                                                                                               integrity, accountability,
                                                                                                               informed judgment,
                                                                                                               financial literacy,
                                                                                                               creativity and
                                                                                                               vision;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>A director
                                                                                                               must be prepared
                                                                                                               to represent the
                                                                                                               best interests
                                                                                                               of all Company
                                                                                                               shareholders, and
                                                                                                               not just one particular
                                                                                                               constituency;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>A director
                                                                                                               must have a record
                                                                                                               of professional
                                                                                                               accomplishment
                                                                                                               in his or her chosen
                                                                                                               field; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>A director
                                                                                                               must be prepared
                                                                                                               and able to participate
                                                                                                               fully in Board
                                                                                                               activities, including
                                                                                                               membership on committees.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What other considerations does the Nominating Committee
consider? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Nominating Committee believes it is
important to have directors from various backgrounds and professions in order to ensure that the Board of Directors has a wealth
of experiences to inform its decisions. Consistent with this philosophy, in addition to the minimum standards set forth above,
business and managerial experience and an understanding of financial statements and financial matters are very important.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>How may shareholders communicate with the members of the
Board of Directors? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Shareholders and others who are interested
in communicating directly with members of the Board of Directors, including communication of concerns relating to accounting,
internal accounting controls or audit matters, or fraud or unethical behavior, may do so by writing to the directors at the following
address:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Name of Director or Directors<BR>
c/o Secretary<BR>
Recon Technology, Ltd<BR>
Room 1902, Building C,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">King Long International Mansion</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">9 Fulin Road</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Beijing 100107 China</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Does the Company have a Code of Business Ethics and Conduct?
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company has adopted a Code of Business
Ethics and Conduct, which is applicable to all directors, officers and associates of the Company, including the principal executive
officer and the principal financial and accounting officer. The complete text of the Code of Business Ethics and Conduct is available
on the Company&rsquo;s web site at www.recon.cn and is also available in print upon request. The Company intends to post any amendments
to or waivers from its Code of Business Ethics and Conduct (to the extent applicable to the Company&rsquo;s principal executive
officer and principal financial and accounting officer) at this location on its web site.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>How often did the Board meet in fiscal 2011? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Board of Directors met a total of four
times, including one regularly scheduled meeting and three special meetings, during fiscal 2011. The Compensation Committee, the
Audit Committee and the Nominating Committee each met four times during fiscal 2011. The Board invites, but does not require,
directors to attend the annual meeting of shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What are the committees of the Board? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During fiscal 2011, the Board of Directors
had standing Audit, Nominating, and Compensation Committees. The members of each of the Committees as of May 21, 2012, their principal
functions and the number of meetings held during the fiscal year ended June 30, 2011 are shown below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Compensation Committee </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The members of the Compensation Committee are:<BR
STYLE="mso-special-character: line-break">
<BR STYLE="mso-special-character: line-break"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Hu Jijun, Chairman<BR>
Nelson N.S. Wong</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Zhao Shudong</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Compensation Committee held four meetings
during the fiscal year ended June 30, 2011. The Compensation Committee&rsquo;s charter is available on the Company&rsquo;s website
at www.recon.cn under Investor Relations and in print upon request. The Compensation Committee&rsquo;s principal responsibilities
include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Making recommendations
                                                                                                               to the Board of
                                                                                                               Directors concerning
                                                                                                               executive management
                                                                                                               organization matters
                                                                                                               generally;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>In the area
                                                                                                               of compensation
                                                                                                               and benefits, making
                                                                                                               recommendations
                                                                                                               to the Board of
                                                                                                               Directors concerning
                                                                                                               employees who are
                                                                                                               also directors
                                                                                                               of the Company,
                                                                                                               consult with the
                                                                                                               CEO on matters
                                                                                                               relating to other
                                                                                                               executive officers,
                                                                                                               and make recommendations
                                                                                                               to the Board of
                                                                                                               Directors concerning
                                                                                                               policies and procedures
                                                                                                               relating to executive
                                                                                                               officers;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Making recommendations
                                                                                                               to the Board of
                                                                                                               Directors regarding
                                                                                                               all contracts of
                                                                                                               the Company with
                                                                                                               any officer for
                                                                                                               remuneration and
                                                                                                               benefits after
                                                                                                               termination of
                                                                                                               regular employment
                                                                                                               of such officer;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Making recommendations
                                                                                                               to the Board of
                                                                                                               Directors concerning
                                                                                                               policy matters
                                                                                                               relating to employee
                                                                                                               benefits and employee
                                                                                                               benefit plans,
                                                                                                               including incentive
                                                                                                               compensation plans
                                                                                                               and equity based
                                                                                                               plans; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Administering
                                                                                                               the Company&rsquo;s
                                                                                                               formal incentive
                                                                                                               compensation programs,
                                                                                                               including equity
                                                                                                               based plans.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Compensation Committee may not delegate
its authority to other persons. Similarly, the Compensation Committee has not engaged a compensation consultant to assist in the
determination of executive compensation issues. While the Company&rsquo;s executives will communicate with the Compensation Committee
regarding executive compensation issues, the Company&rsquo;s executive officers do not participate in any executive compensation
decisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Audit Committee </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The members of the Audit Committee are:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><BR>
Nelson N.S. Wong, Chairman<BR>
Zhao Shudong<BR>
Hu Jijun</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Audit Committee held five meetings
during the fiscal year ended June 30, 2011. The primary responsibility of the Audit Committee is to assist the Board of Directors
in monitoring the integrity of the Company&rsquo;s financial statements and the independence of its external auditors. The Company
believes that each of the members of the Audit Committee is &ldquo;independent&rdquo; and that Mr. Wong qualifies as an &ldquo;audit
committee financial expert&rdquo; in accordance with applicable NASDAQ Capital Market listing standards. In carrying out its responsibility,
the Audit Committee undertakes to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Review and
                                                                                                               recommend to the
                                                                                                               directors the independent
                                                                                                               auditors to be
                                                                                                               selected to audit
                                                                                                               the financial statements
                                                                                                               of the Company;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Meet with the
                                                                                                               independent auditors
                                                                                                               and management
                                                                                                               of the Company
                                                                                                               to review the scope
                                                                                                               of the proposed
                                                                                                               audit for the current
                                                                                                               year and the audit
                                                                                                               procedures to be
                                                                                                               utilized, and at
                                                                                                               the conclusion
                                                                                                               thereof review
                                                                                                               such audit, including
                                                                                                               any comments or
                                                                                                               recommendations
                                                                                                               of the independent
                                                                                                               auditors;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Review with
                                                                                                               the independent
                                                                                                               auditors and financial
                                                                                                               and accounting
                                                                                                               personnel the adequacy
                                                                                                               and effectiveness
                                                                                                               of the accounting
                                                                                                               and financial controls
                                                                                                               of the Company.
                                                                                                               The Audit Committee
                                                                                                               elicits recommendations
                                                                                                               for the improvement
                                                                                                               of such internal
                                                                                                               control procedures
                                                                                                               or particular areas
                                                                                                               where new or more
                                                                                                               detailed controls
                                                                                                               or procedures are
                                                                                                               desirable. The
                                                                                                               Audit Committee
                                                                                                               emphasizes the
                                                                                                               adequacy of such
                                                                                                               internal controls
                                                                                                               to expose any payments,
                                                                                                               transactions, or
                                                                                                               procedures that
                                                                                                               might be deemed
                                                                                                               illegal or otherwise
                                                                                                               improper;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Review the
                                                                                                               internal accounting
                                                                                                               function of the
                                                                                                               Company, the proposed
                                                                                                               audit plans for
                                                                                                               the coming year
                                                                                                               and the coordination
                                                                                                               of such plans with
                                                                                                               the Company&rsquo;s
                                                                                                               independent auditors;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Review the
                                                                                                               financial statements
                                                                                                               contained in the
                                                                                                               annual report to
                                                                                                               shareholders with
                                                                                                               management and
                                                                                                               the independent
                                                                                                               auditors to determine
                                                                                                               that the independent
                                                                                                               auditors are satisfied
                                                                                                               with the disclosure
                                                                                                               and contents of
                                                                                                               the financial statements
                                                                                                               to be presented
                                                                                                               to the shareholders;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Provide sufficient
                                                                                                               opportunity for
                                                                                                               the independent
                                                                                                               auditors to meet
                                                                                                               with the members
                                                                                                               of the Audit Committee
                                                                                                               without members
                                                                                                               of management present.
                                                                                                               Among the items
                                                                                                               discussed in these
                                                                                                               meetings are the
                                                                                                               independent auditors&rsquo;
                                                                                                               evaluation of the
                                                                                                               Company&rsquo;s
                                                                                                               financial, accounting,
                                                                                                               and auditing personnel,
                                                                                                               and the cooperation
                                                                                                               that the independent
                                                                                                               auditors received
                                                                                                               during the course
                                                                                                               of the audit;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Review accounting
                                                                                                               and financial human
                                                                                                               resources and succession
                                                                                                               planning within
                                                                                                               the Company;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Submit the
                                                                                                               minutes of all
                                                                                                               meetings of the
                                                                                                               Audit Committee
                                                                                                               to, or discuss
                                                                                                               the matters discussed
                                                                                                               at each committee
                                                                                                               meeting with, the
                                                                                                               Board of Directors;
                                                                                                               and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Investigate
                                                                                                               any matter brought
                                                                                                               to its attention
                                                                                                               within the scope
                                                                                                               of its duties,
                                                                                                               with the power
                                                                                                               to retain outside
                                                                                                               counsel for this
                                                                                                               purpose, if, in
                                                                                                               its judgment, that
                                                                                                               is appropriate.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Audit Committee has established procedures
for the receipt, retention and treatment of complaints regarding accounting, internal accounting controls and auditing matters,
including procedures for the confidential, anonymous submission by employees of concerns regarding questionable accounting or
auditing matters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Nominating Committee </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The members of the Nominating Committee are:<BR STYLE="mso-special-character:
line-break">
<BR STYLE="mso-special-character: line-break"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Zhao Shudong, Chairman</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Nelson N.S. Wong<BR>
Hu Jijun</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Nominating Committee had four meetings
during the fiscal year ended June 30, 2011. All members of the Nominating Committee are independent, as such term is defined by
the NASDAQ Capital Market listing standards. The Nominating Committee undertakes to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Identify individuals
                                                                                                               qualified to become
                                                                                                               members of the
                                                                                                               Board of Directors
                                                                                                               and to make recommendations
                                                                                                               to the Board of
                                                                                                               Directors with
                                                                                                               respect to candidates
                                                                                                               for nomination
                                                                                                               for election at
                                                                                                               the next annual
                                                                                                               meeting of shareholders
                                                                                                               or at such other
                                                                                                               times when candidates
                                                                                                               surface and, in
                                                                                                               connection therewith,
                                                                                                               consider suggestions
                                                                                                               submitted by shareholders
                                                                                                               of the Company;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Determine and
                                                                                                               make recommendations
                                                                                                               to the Board of
                                                                                                               Directors with
                                                                                                               respect to the
                                                                                                               criteria to be
                                                                                                               used for selecting
                                                                                                               new members of
                                                                                                               the Board of Directors;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Oversee the
                                                                                                               process of evaluation
                                                                                                               of the performance
                                                                                                               of the Company&rsquo;s
                                                                                                               Board of Directors
                                                                                                               and committees;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Make recommendations
                                                                                                               to the Board of
                                                                                                               Directors concerning
                                                                                                               the membership
                                                                                                               of committees of
                                                                                                               the Board and the
                                                                                                               chairpersons of
                                                                                                               the respective
                                                                                                               committees;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Make recommendations
                                                                                                               to the Board of
                                                                                                               Directors with
                                                                                                               respect to the
                                                                                                               remuneration paid
                                                                                                               and benefits provided
                                                                                                               to members of the
                                                                                                               Board in connection
                                                                                                               with their service
                                                                                                               on the Board or
                                                                                                               on its committees;
                                                                                                               and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Evaluate Board
                                                                                                               and committee tenure
                                                                                                               policies as well
                                                                                                               as policies covering
                                                                                                               the retirement
                                                                                                               or resignation
                                                                                                               of incumbent directors.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Board of Directors has determined to
provide a process by which shareholders may communicate with the Board as a whole, a Board committee or individual director. Shareholders
wishing to communicate with the Board as a whole, a Board committee or an individual member may do so by sending a written communication
addressed to the Board of Directors of the Company or to the committee or to an individual director, c/o Secretary, Recon Technology
Ltd, Room 1902, Building C, King Long International Mansion, 9 Fulin Road, Beijing 100107 China. All communications will be compiled
by the Secretary of the Company and submitted to the Board of Directors or the addressee not later than the next regular Board
meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MANAGEMENT&nbsp;&mdash;&nbsp;BUSINESS
HISTORY OF EXECUTIVE OFFICERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For information as to the business history
of our Chief Executive Officer Mr. Yin, see the section &ldquo;Proposal One: Election of Directors&rdquo; elsewhere in this Proxy
Statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Liu Jia</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Chief Financial Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Age &ndash; 28</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Ms.&nbsp;Liu has served as our Chief Financial
Officer since 2008. Prior to that, Ms.&nbsp;Liu assisted Heilongjiang Province Jintian Group with financial due diligence, field
surveys and data analysis. While in college Ms.&nbsp;Liu served internships in Xinghua Certified Public Accountants, Ltd.; Beijing
Zhongweihuahao Accountants Affairs Office; Tiantong Securities Co., Ltd. and Industrial and Commercial Bank of China, which internships
focused on auditing, accounting and data analysis. Ms.&nbsp;Liu received her bachelor&rsquo;s degree in 2006 from Beijing University
of Chemical Technology, School of Economics and Management and her master&rsquo;s degree in industrial economics in 2009 from
Beijing Wuzi University.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EMPLOYMENT AGREEMENTS WITH THE COMPANY&rsquo;S<BR>
NAMED EXECUTIVE OFFICERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have employment agreements with each
of our Chief Executive Officer, Chief Technology Officer, Chief Marketing Officer and Chief Financial Officer. With the exception
of the employment agreement with our Chief Financial Officer, each of these employment agreements provides for an indefinite term.
Such employment agreements may be terminated (1)&nbsp;if the employee gives written notice of his or her intention to resign,
(2)&nbsp;the employee is absent from three consecutive meetings of the Board of Directors, without special leave of absence from
the other members of the Board of Directors, and the Board of Directors passes a resolution that such employee has vacated his
office, or (3)&nbsp;the death, bankruptcy or mental incapacity of the employee. The employment agreement for our Chief Financial
Officer provides for a one-year term, currently expiring on March&nbsp;12, 2013. Such employment agreement may be terminated if
the employee gives thirty days&rsquo; written notice of her intention to resign, or if the Board of Directors determines she can
no longer perform her duties as Chief Financial Officer and provides her with thirty days&rsquo; written notice of termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under Chinese law, we may only terminate
employment agreements without cause and without penalty by providing notice of non-renewal one month prior to the date on which
the employment agreement is scheduled to expire. If we fail to provide this notice or if we wish to terminate an employment agreement
in the absence of cause, then we are obligated to pay the employee one month&rsquo;s salary for each year we have employed the
employee. We are, however, permitted to terminate an employee for cause without penalty to our company, where the employee has
committed a crime or the employee&rsquo;s actions or inactions have resulted in a material adverse effect to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SUMMARY EXECUTIVE COMPENSATION TABLE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table shows the annual compensation
paid by us to Mr.&nbsp;Yin Shenping, our Chief Executive Officer, and Mr.&nbsp;Chen Guangqiang and Mr.&nbsp;Li Hongqi, our two
most highly compensated officers other than Mr.&nbsp;Yin Shenping, for the years ended June&nbsp;30, 2011 and 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Name&nbsp;and&nbsp;principal&nbsp;position</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Salary</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Bonus</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Option<BR> Awards</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">All&nbsp;Other<BR> Compensation</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Yin Shenping,</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 34%; text-align: left; padding-left: 0.12in">Principal&nbsp;Executive&nbsp;Officer</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: center">2011</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">80,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">80,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2010</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">80,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$&nbsp;</TD><TD STYLE="text-align: right">265,200</TD><TD STYLE="text-align: left"><SUP>(1)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">345,200</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Chen Guangqiang,</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.12in">Chief&nbsp;Technology&nbsp;Officer <SUP>(4)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2011</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">60,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">60,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2010</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">60,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$&nbsp;</TD><TD STYLE="text-align: right">221,000</TD><TD STYLE="text-align: left"><SUP>(2)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">281,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Li Hongqi,</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 0.12in">Chief Marketing Officer <SUP>(4)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2011</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">35,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">35,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2010</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">60,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$&nbsp;</TD><TD STYLE="text-align: right">221,000</TD><TD STYLE="text-align: left"><SUP>(3)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">281,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left; vertical-align: top">(1)</TD>
    <TD STYLE="vertical-align: top">On July&nbsp;30, 2009, 60,000 share options were awarded to Yin Shenping, which options vest
    over a period of five years, the first 20% of which vested on July&nbsp;30, 2010 and the second 20% on July 30, 2011. The
    grant date fair value of such options was $4.42.</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">(2)</TD>
    <TD STYLE="vertical-align: top">On July&nbsp;30, 2009, 50,000 share options were awarded to Chen Guangqiang, which options
    vest over a period of five years, the first 20% of which vested on July&nbsp;30, 2010 and the second 20% on July 30, 2011.
    The grant date fair value of such options was $4.42.</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">(3)</TD>
    <TD STYLE="vertical-align: top">On July&nbsp;30, 2009, 50,000 share options were awarded to Li Hongqi, which options vest
    over a period of five years, the first 20% of which vested on July&nbsp;30, 2010 and the second 20% on July 30, 2011. The
    grant date fair value of such options was $4.42. Li subsequently resigned from his position as Chief Marketing Officer on
    January 31, 2011. At a result, Li forfeited 50,000 share options and retains 0 share options.&nbsp;&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left; vertical-align: top">(4)</TD>
    <TD STYLE="vertical-align: top">Messrs. Chen and Li did not qualify as named executive officers in the years ended on June
    20, 2010 and 2011 but for option awards which have a grant date fair value in excess of $100,000.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>OUTSTANDING EQUITY AWARDS AT FISCAL
YEAR-END</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid">Plan&nbsp;category</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid">Number&nbsp;of&nbsp;securities&nbsp;to<BR>
    be&nbsp;issued&nbsp;upon&nbsp;exercise&nbsp;of<BR> outstanding&nbsp;&nbsp;options,<BR> warrants&nbsp;and&nbsp;rights&nbsp;(a)</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid">Weighted-average<BR>
    exercise&nbsp;price&nbsp;of<BR> outstanding&nbsp;options,<BR> warrants&nbsp;and<BR>
    rights&nbsp;(b)</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid">Number&nbsp;of&nbsp;securities&nbsp;remaining<BR>
    available&nbsp;for&nbsp;future&nbsp;issuance&nbsp;under<BR> equity&nbsp;&nbsp;compensation&nbsp;plans<BR> (excluding&nbsp;securities&nbsp;reflected&nbsp;in<BR>
    column&nbsp;(a))&nbsp;(c)</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 61%; font-weight: bold; text-align: left; text-indent: -12pt; padding-left: 12pt">Equity compensation<BR>
    plans approved by<BR> security holders</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">193,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">6.00</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">597,362</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>AUDIT COMMITTEE REPORT AND FEES PAID
TO<BR>
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Who served on the Audit Committee of the Board of Directors
during fiscal year 2010? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The members of the Audit Committee as of
June 30, 2011 were Nelson N.S. Wong, Zhao Shudong and Hu Jijun. Each member of the Audit Committee is independent under the rules
of the SEC and the NASDAQ Capital Market. The Board of Directors has determined that Mr. Wong, who is an independent director,
is an &ldquo;audit committee financial expert&rdquo; as such term is defined in Item 407(d)(5) of Regulation S-K promulgated under
the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What document governs the activities of the Audit Committee?
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Audit Committee acts under a written
charter, which sets forth its responsibilities and duties, as well as requirements for the Audit Committee&rsquo;s composition
and meetings. The Audit Committee Charter is available on the Company&rsquo;s website at www.recon.cn under Investor Relations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>How does the Audit Committee conduct its meetings? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During fiscal 2011, the Audit Committee
met with the senior members of the Company&rsquo;s financial management team and the Company&rsquo;s independent registered public
accounting firm. The Audit Committee&rsquo;s agenda was established by the Chairman. At each meeting, the Audit Committee reviewed
and discussed various financial and regulatory issues. The Audit Committee also had private, separate sessions from time to time
with representatives of the Company&rsquo;s independent registered public accounting firm, at which meetings candid discussions
of financial management, accounting and internal control issues took place.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Does the Audit Committee review the periodic reports and
other public financial disclosures of the Company? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Audit Committee reviews each of the
Company&rsquo;s quarterly and annual reports, including Management&rsquo;s Discussion of Results of Operations and Financial Condition.
As part of this review, the Audit Committee discusses the reports with the Company&rsquo;s management and considers the audit
and review reports prepared by the independent registered public accounting firm about the Company&rsquo;s quarterly and annual
reports, as well as related matters such as the quality (and not just the acceptability) of the Company&rsquo;s accounting principles,
alternative methods of accounting under generally accepted accounting principles and the preferences of the independent registered
public accounting firm in this regard, the Company&rsquo;s critical accounting policies and the clarity and completeness of the
Company&rsquo;s financial and other disclosures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>What is the role of the Audit Committee
in connection with the financial statements and controls of the Company? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Management of the Company has primary responsibility
for the financial statements and internal control over financial reporting. The independent registered public accounting firm
has responsibility for the audit of the Company&rsquo;s financial statements and internal control over financial reporting. The
responsibility of the Audit Committee is to oversee financial and control matters, among other responsibilities fulfilled by the
Audit Committee under its charter. The Audit Committee meets regularly with the independent registered public accounting firm,
without the presence of management, to ensure candid and constructive discussions about the Company&rsquo;s compliance with accounting
standards and best practices among public companies comparable in size and scope to the Company. The Audit Committee also regularly
reviews with its outside advisors material developments in the law and accounting literature that may be pertinent to the Company&rsquo;s
financial reporting practices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What has the Audit Committee done with regard to the Company&rsquo;s
audited financial statements for fiscal 2011? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Audit Committee has:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>reviewed and
                                                                                                               discussed the audited
                                                                                                               financial statements
                                                                                                               with the Company&rsquo;s
                                                                                                               management; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>discussed with
                                                                                                               Friedman LLP, the
                                                                                                               Company&rsquo;s
                                                                                                               independent registered
                                                                                                               public accounting
                                                                                                               firm for the 2011
                                                                                                               fiscal year, the
                                                                                                               matters required
                                                                                                               to be discussed
                                                                                                               by Statement on
                                                                                                               Auditing Standards
                                                                                                               No. 61, Communication
                                                                                                               with Audit Committees,
                                                                                                               as amended.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Has the Audit Committee considered the independence of the
Company&rsquo;s auditors? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Audit Committee has received from Friedman
LLP the written disclosures and the letter required by Independence Standards Board Standard No. 1, Independence Discussions with
Audit Committees, and the Audit Committee has discussed with Friedman LLP their independence. The Audit Committee has concluded
that Friedman LLP is independent from the Company and its management.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Has the Audit Committee made a recommendation regarding
the audited financial statements for fiscal 2010? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Based upon its review and the discussions
with management and the Company&rsquo;s independent registered public accounting firm, the Audit Committee recommended to the
Board of Directors that the audited consolidated financial statements for the Company be included in the Company&rsquo;s Annual
Report on Form 10-K for fiscal 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Has the Audit Committee reviewed the fees paid to the independent
registered public accounting firm during fiscal 2011? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Audit Committee has reviewed and discussed
the fees paid to Friedman LLP during fiscal 2011 for audit, audit-related, tax and other services, which are set forth below under
&ldquo;Fees Paid to Independent Registered Public Accounting Firm.&rdquo; The Audit Committee has determined that the provision
of non-audit services is compatible with Friedman LLP&rsquo;s independence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What is the Company&rsquo;s policy regarding the retention
of the Company&rsquo;s auditors? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Audit Committee has adopted a policy
regarding the retention of the independent registered public accounting firm that requires pre-approval of all services by the
Audit Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Who prepared this report? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This report has been furnished by the members
of the Audit Committee as of June 30, 2011:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Nelson N.S. Wong, Chairman<BR>
Zhao Shudong<BR>
Hu Jijun</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FEES PAID TO INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Audit Fees </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During fiscal 2011, MarcumBP&rsquo;s fees
for the annual audit of our financial statements and the quarterly reviews of the financial statements were $140,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During fiscal 2010, B&amp;P&rsquo;s fees
for the annual audit of our financial statements and the quarterly reviews of the financial statements were $135,000. Audit services
provided by B&amp;P for fiscal 2010 included the examination of the consolidated financial statements of the Company&rsquo;s and
services related to periodic filings made with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Audit Related Fees </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During fiscal 2011, the Company paid MarcumBP
$24,362 for audit-related services. These services consisted of advice relating to SEC matters and the filing of a registration
statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During fiscal 2010, the Company paid B&amp;P
$14,750 for audit-related services. These services consisted of advice relating to SEC matters and the filing of a registration
statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During fiscal 2011, the Company paid HBM
$14,350 for audit-related services. These services related to the filing of a registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During fiscal 2010, the Company paid HB&amp;M
$35,277 for audit-related services. These services related to the filing of a registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Tax Fees </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company did not pay MarcumBP for tax
services in fiscal 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company did not pay B&amp;P for tax
services in fiscal 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>All Other Fees </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company did not pay MarcumBP for any
other services in fiscal 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company did not pay BP for any other
services in fiscal 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BENEFICIAL OWNERSHIP OF ORDINARY SHARES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table sets forth information
with respect to beneficial ownership of our ordinary shares as of the date of this report, for each person known by us to beneficially
own 5% or more of our ordinary shares, and all of our executive officers and directors individually and as a group. Beneficial
ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the securities.
Except as indicated below, and subject to applicable community property laws, the persons named in the table have sole voting
and investment power with respect to all ordinary shares shown as beneficially owned by them. Percentage of beneficial ownership
is based on 4,029,011 Shares, which consists of 3,951,811 shares outstanding as of May 21, 2012 and 77,200 vested options. Our
major shareholders do not possess voting rights that differ from our other shareholders. The address of each of the below shareholders
is c/o Recon Technology Ltd, Room 1902, Building C, King Long International Mansion, 9 Fulin Road, Beijing 100107 China.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 88%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.4in">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Amount&nbsp;of<BR> Beneficial<BR>
    Ownership</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Percentage<BR> Ownership</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%">Yin Shenping<SUP>(1)</SUP></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">643,761</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">15.98</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Chen Guangqiang<SUP>(2)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">639,761</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15.88</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Liu Jia<SUP>(2)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,000</TD><TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Liu Hui</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">375,156</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.31</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Chen Yiquan</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">458,525</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11.38</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Hu Jijun<SUP>(3)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,000</TD><TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Nelson Wong<SUP>(4)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,200</TD><TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Zhao Shudong</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Total</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,150,403</TD><TD STYLE="text-align: left"><SUP>(5)</SUP>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53.37</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Directors and Executive Officers as a Group (eight members)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,150,403</TD><TD STYLE="text-align: left"><SUP>(5)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53.37</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.15in; padding-left: 12pt; vertical-align: super; text-indent: -12pt">(1)</TD>
    <TD STYLE="vertical-align: top">Includes 24,000 options to purchase ordinary shares vested as of July&nbsp;30, 2011.</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 12pt; vertical-align: super; text-indent: -12pt">(2)&nbsp;</TD>
    <TD STYLE="vertical-align: top">Includes 20,000 options to purchase ordinary shares vested as of July&nbsp;30, 2011.&nbsp;</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 12pt; vertical-align: super; text-indent: -12pt">(3)&nbsp;</TD>
    <TD STYLE="vertical-align: top">Includes 6,000 options to purchase ordinary shares vested as of July&nbsp;30, 2011.&nbsp;</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 12pt; vertical-align: super; text-indent: -12pt">(4)&nbsp;</TD>
    <TD STYLE="vertical-align: top">Includes 7,200 options to purchase ordinary shares vested as of July&nbsp;30, 2011.&nbsp;</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: super; padding-left: 12pt; text-indent: -12pt">(5)</TD>
    <TD STYLE="vertical-align: top">Includes (a) 77,200 options to purchase ordinary shares vested as of July 30, 2011 and (b)
    1,239,522 ordinary shares, held by executive officers and directors.</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 12pt; vertical-align: super; text-indent: -12pt">*&nbsp;</TD>
    <TD STYLE="vertical-align: top">Less than 1%.&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENERAL</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Compensation Committee Interlocks and Insider Participation
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">None of the members of the Board of Directors
who served on the Compensation Committee during the fiscal year ended June 30, 2011 were officers or employees of the Company
or any of its subsidiaries or had any relationship with the Company requiring disclosure under SEC regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Compliance with Section 16(a) Beneficial Ownership Reporting
Requirements </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Section 16(a) of the Securities Exchange
Act of 1934 requires the Company&rsquo;s directors and executive officers and persons who own more than ten percent of a registered
class of the Company&rsquo;s equity securities to file with the Securities and Exchange Commission reports of ownership and changes
in beneficial ownership of the Company&rsquo;s ordinary shares. Directors, executive officers and greater than ten percent shareholders
are required to furnish the Company with copies of all Section 16(a) forms they file. Based solely on a review of the copies of
these reports furnished to the Company or written representations that no other reports were required, we believe that all reports
were timely made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Availability of Form 10-K to Shareholders </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Rules promulgated by the SEC require us
to provide an Annual Report to Shareholders who receive this Proxy Statement. We will also provide copies of the Annual Report
to brokers, dealers, banks, voting trustees and their nominees for the benefit of their beneficial owners of record. Additional
copies of the Annual Report on Form 10-K for the fiscal year ended June 30, 2011 (without exhibits or documents incorporated by
reference), are available without charge to shareholders upon written request to Secretary, Recon Technology, Ltd, Room 1902,
Building C, King Long International Mansion, 9 Fulin Road, Beijing 100107 China, by calling 010-84945799 or via the Internet at
www.recon.cn.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Shareholder Proposals </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To be considered for inclusion in next
year&rsquo;s Proxy Statement or considered at next year&rsquo;s annual meeting but not included in the Proxy Statement, shareholder
proposals must be submitted in writing by January 21, 2013. All written proposals should be submitted to: Secretary, Recon Technology,
Ltd, Room 1902, Building C, King Long International Mansion, 9 Fulin Road, Beijing 100107 China.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Other Proposed Actions </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If any other items or matters properly
come before the meeting, the proxies received will be voted on those items or matters in accordance with the discretion of the
proxy holders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Solicitation by Board; Expenses of Solicitation </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our Board of Directors has sent you this
Proxy Statement. Our directors, officers and associates may solicit proxies by telephone or in person. We will also reimburse
the expenses of brokers, nominees and fiduciaries that send proxies and proxy materials to our shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>



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