American Wenshen Steel Group, Inc.(fka AWSH)

[$hylo]

There are five patents that were acquired from third parties in 2005. The Patents are being amortized over a 12 year period. At June 30, 2010, the net amount of the Patents was $396,557 after considering the accumulated amortization of $484,681. At September 30, 2009, the net amount of the Patents was $460,688 after considering the accumulated amortization of $416,813. The amortization expense was $65,836 & $65,726 and for the nine months ended June 30, 2010 and 2009 respectively.