Daqo New Energy and JNE Solar Announce Solar Module Production Joint Venture in Canada

Daqo New Energy Corp. (NYSE: DQ) (“Daqo New Energy” or the “Company”), a leading polysilicon manufacturer based in China, and JNE Consulting Ltd. (“JNE Consulting”) today announced a shareholders’ agreement between Daqo New Energy’s wholly-owned subsidiary, Daqo New Energy Holdings (Canada) Ltd. (“Daqo Canada”, and, collectively with Daqo New Energy, “Daqo”) and JNE’s affiliate, JNE Solar Inc. (“JNE Solar”, and, collectively with JNE Consulting, “JNE”), to build and operate a solar module production facility in Hamilton, Ontario, Canada. In Phase One of the project, the joint venture company intends to build a production facility with a capacity of 25 megawatts (MW) of photovoltaic (PV) module. Commercial production is expected to commence in the 4th quarter of 2011. Total investment for Phase One will be about CAD $5 million and will be initially contributed 85/15 by Daqo and JNE,

"We are excited about the unique opportunity of Canada PV module market," said Dr. Gongda Yao, CEO of Daqo New Energy. "We are also happy to have JNE as a partner in North America, which has extensive engineering service experience in Canada, providing engineering consulting service for several solar power projects, and is very familiar with the Canadian PV market".

Mr. Joe Ng, JNE’s Chief Executive Officer commented, "We have been working with Daqo for many years and understand their philosophy and belief in quality. We also admire and respect the success Daqo New Energy, which within a short period of time, built its reputation as one of the best polysilicon material providers in China, as well as quality PV module provider for the worldwide PV market. By partnering with Daqo New Energy to capture the growing Canadian PV module market, we have laid a solid foundation for the future success of this new venture.”

About Daqo New Energy Corp.

Daqo New Energy Corp. (NYSE: DQ) is a leading polysilicon manufacturer based in China that aims to become a vertically integrated photovoltaic product manufacturer. Daqo New Energy primarily manufactures and sells high-quality polysilicon to photovoltaic product manufacturers. It also manufactures and sells photovoltaic wafers and modules. For more information about Daqo New Energy, please visit www.dqsolar.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates” and similar statements. Among other things, the outlook for the first quarter of 2011 and quotations from management in this announcement, as well as Daqo New Energy’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral for-ward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the demand for photovoltaic products and the development of photovoltaic technologies; global supply and demand for polysilicon; alternative technologies in cell manufacturing; our ability to significantly expand our polysilicon production capacity and output; the reduction in or elimination of government subsidies and economic incentives for solar energy applications; and our ability to successfully implement our vertical integration strategy. Further information regarding these and other risks is included in the reports or documents we filed with, or furnished to, the Securities and Exchange Commission. Daqo New Energy does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and Daqo New Energy undertakes no duty to update such information, except as required under applicable law.