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Pan County Endorses L&L Participation in its Coal Reorganization
SEATTLE, October 17, 2011. L & L Energy, Inc. (Nasdaq: LLEN) (“L&L”), a U.S. based company since 1995 with coal mining and distribution businesses
in China, today announced It has received a letter from the local Pan County government (Pan Shan) supporting L&L’s participation in the 5-year coal
consolidation and reorganization plan which starts this year in Guizhou Province. Pan County, where much of the metallurgical coal is located, is the “coal
capital” of Guizhou Province.
In the letter, dated October 13, 2011 (letter numbered PS-2011-136), the Pan County government welcomed L&L’s participation and confirmed that the
consolidation and reorganization of existing mines is a healthy policy for the coal industry’s growth. The Pan County government states it will actively
coordinate with L&L to implement its policy. The government intends to select and assist a small group of companies with operational and management
skills, developing these competitive companies into large scale operators. The Guizhou Province government intends to consolidate most of the
approximately 1,600 existing mine operators into roughly 50 or less holding companies. The goal of the consolidation effort is to improve mining resource
management and to increase provincial coal production from 125 million tons per year to 300 million tons by 2015. While official consolidators have not
yet been named, L&L, on September 6, 2011, received a letter of support from Guizhou Energy Bureau and, on September 9, 2011, the L&L
management team was received by Vice Governor Sun and officials of the China Development and Reform Commission (CDRC).
L&L in is the only U.S.-based and NASDAQ listed company operating in Guizhou. L&L operates two mines in Pan County. L&L established an office in the
capital of Guizhou, Guiyang City, in May 2011 and opened a field office in Pan County last week. Additionally, the Company received initial approval for a
coal wholesale license in Guizhou, expanding its coal wholesale operations from Yunnan and growing its coal network by establishing business
relationships with more mining operators.
Dickson Lee, Chairman & CEO of L&L stated, “We are pleased to have received this encouraging letter from the Pan County government which adds to
the support we previously received from the provincial government. The Guizhou government is in the process of selecting experienced mining operators
to consolidate existing mines. Each consolidator will target 5-6 million tons of annual coal mining capacity. If selected, L&L would increase its mining
revenues more than 500% over the next few years. Dr. Syd Peng, a world renowned coal geologist and L&L Director has been leading our evaluation of
acquisition targets and is departing to China this week. ”
A copy of the letter of Pan County People’s Government is available at the L&L website.
Forward-Looking Statements
The statements contained words that are not historical fact, including statements related to Company's future performance, are all "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties. Actual results of
the future events described in this document could differ materially due to numerous factors and other made by the company filing with the Securities and
Exchange Commission. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking
statements
Contacts:
L&L Energy, Inc.
(206) 264-8065
ir@llenergyinc.com
###
SOURCE: L & L Energy, Inc.
SEATTLE, October 17, 2011. L & L Energy, Inc. (Nasdaq: LLEN) (“L&L”), a U.S. based company since 1995 with coal mining and distribution businesses
in China, today announced It has received a letter from the local Pan County government (Pan Shan) supporting L&L’s participation in the 5-year coal
consolidation and reorganization plan which starts this year in Guizhou Province. Pan County, where much of the metallurgical coal is located, is the “coal
capital” of Guizhou Province.
In the letter, dated October 13, 2011 (letter numbered PS-2011-136), the Pan County government welcomed L&L’s participation and confirmed that the
consolidation and reorganization of existing mines is a healthy policy for the coal industry’s growth. The Pan County government states it will actively
coordinate with L&L to implement its policy. The government intends to select and assist a small group of companies with operational and management
skills, developing these competitive companies into large scale operators. The Guizhou Province government intends to consolidate most of the
approximately 1,600 existing mine operators into roughly 50 or less holding companies. The goal of the consolidation effort is to improve mining resource
management and to increase provincial coal production from 125 million tons per year to 300 million tons by 2015. While official consolidators have not
yet been named, L&L, on September 6, 2011, received a letter of support from Guizhou Energy Bureau and, on September 9, 2011, the L&L
management team was received by Vice Governor Sun and officials of the China Development and Reform Commission (CDRC).
L&L in is the only U.S.-based and NASDAQ listed company operating in Guizhou. L&L operates two mines in Pan County. L&L established an office in the
capital of Guizhou, Guiyang City, in May 2011 and opened a field office in Pan County last week. Additionally, the Company received initial approval for a
coal wholesale license in Guizhou, expanding its coal wholesale operations from Yunnan and growing its coal network by establishing business
relationships with more mining operators.
Dickson Lee, Chairman & CEO of L&L stated, “We are pleased to have received this encouraging letter from the Pan County government which adds to
the support we previously received from the provincial government. The Guizhou government is in the process of selecting experienced mining operators
to consolidate existing mines. Each consolidator will target 5-6 million tons of annual coal mining capacity. If selected, L&L would increase its mining
revenues more than 500% over the next few years. Dr. Syd Peng, a world renowned coal geologist and L&L Director has been leading our evaluation of
acquisition targets and is departing to China this week. ”
A copy of the letter of Pan County People’s Government is available at the L&L website.
Forward-Looking Statements
The statements contained words that are not historical fact, including statements related to Company's future performance, are all "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties. Actual results of
the future events described in this document could differ materially due to numerous factors and other made by the company filing with the Securities and
Exchange Commission. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking
statements
Contacts:
L&L Energy, Inc.
(206) 264-8065
ir@llenergyinc.com
###
SOURCE: L & L Energy, Inc.
