Recon Technology Limited announced that its subsidiary, Gansu BHD Environmental Technology Co., Ltd, and Yumen Oilfield Engineering Construction Co., signed a service contract for the hazardous waste disposal technology service project of various oil production plants of Yumen Oilfield. The contract amount is approximately RMB 9 million (approximately USD 1.4 million) and the contract period is one year. According to the contract, Gansu BHD is required to transfer and safely dispose of about 6,000 tons of hazardous waste such as oily sludge temporarily stored in various oil production plants in Yumen Oilfield. Gansu BHD has a 50-year land use right for 26,235.59 square meters in Yumen City and built a production line with an annual treatment capacity of 60,000 tons of oilfield oily waste comprehensive utilization and harmless comprehensive disposal (the "Oil Sludge Treatment Project") with a cumulative investment of approximately RMB 40 million. Gansu BHD has also achieved a necessary and scarce hazardous waste operating permit issued by the Jiuquan Environmental Protection Bureau in Gansu province. The Company currently owns a 70% interest in Gansu BHD.