China Aviation Oil Corp. OTC: CAOLF

A class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all securities purchasers of China Aviation Oil (Singapore) Corporation LTD (OTC: CAOLF) ("China Avitaion" or the "Company") between March 27, 2003 and November 30, 2004 inclusive (the "Class Period").

The complaint charges China Aviation, Jia Changbin and Chen Jiulin with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company lacked adequate internal controls and risk management procedures; (2) that as a consequence the Company engaged in speculative derivative trading, forcing controlling shareholders to raise funds to cover margin calls on massive derivative losses; and (3) that the Company kept $550 million in derivative trading losses of the books, thereby artificially inflating its financial results.

On November 30, 2004, China Oil announced that the Company had suffered significant losses from speculative oil derivative trading. As of November 29, 2004, the Company estimated that the total cumulative losses (both realized and unrealized) incurred by the Company were approximately US$550 million. On this news, trading in the Company's shares was suspended after the shares dropped to below S$1.00 per share, compared to prices as high as S$1.70 per share, at which the shares traded during the Class Period.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.