TAIYUAN, China, Nov. 12 /PRNewswire-Asia-FirstCall/ -- Puda Coal, Inc. (NYSE Amex: PUDA), a supplier of high grade metallurgical coking coal used to produce coke for steel manufacturing in China, today provided an update on its plans to consolidate eight coal mines. On September 28, 2009, the Shanxi provincial government appointed a subsidiary of Puda Coal, Shanxi Puda Coal Group Co., Ltd. ("Shanxi Coal") as a consolidator of eight coal mines in Yucheng City, Pinglu County. Shanxi Coal has the government's permission to consolidate eight coal mines into five. The Company has commenced the technical geological prospecting process for the targeted coal reserves. The Company will also perform a comprehensive financial analysis of the project and then determine the most efficient plan to develop and construct the targeted consolidated coal mines. So far, Shanxi Coal has not entered into any definitive agreements for the acquisition of the eight coal mines. Below is a summary of the consolidation plan according to the government approval: Consolidation Plan 8 Coal Mines- 5 Coal Mines- Added Pre- Consolidation Post- Consolidation Capacity Total area of Coal mines 18.3 km squared 35.6 km squared 17.3 km squared Coal reserves 49.24 million 163.87 million 114.63 million metric tons metric tons metric tons Annual coal mine production 1.65 million 3.60 million 1.95 million capacity metric tons metric tons metric tons Remark: the numbers listed in the sheet are excerpted from the approval document of government Pursuant to the government approval, Shanxi Coal will consolidate eight coal mines into five, which is expected to increase the total area of the coal mines by 94.5% to 35.6 square kilometers, expand the estimated coal reserves by 232.8% to 163.9 million metric tons, and grow the coal mine production capacity by 118.2% to 3.6 million metric tons per year. The coal reserves of the target coal mines are mostly low-grey, high- sulphur, high-heat lean coal and middle-grey, low-sulphur, high-heat and strong adhesion coking coal. Lean coal is mainly used for power generation and can also be used as a secondary raw coal for coke production. Coking coal is the primary raw coal for coke production. The first phase of the consolidation will be the expansion of two coal mines from current annual capacities of 300,000 metric tons and 150,000 metric tons to 600,000 metric tons and 300,000 metric tons, respectively. Since the overall construction conditions of the two target coal mines are good, we expect that the coal mines' production capacities can be expanded without disrupting the mines' current mining operations. At present the Company is negotiating with the owners of the eight coal mines on the acquisition or merger. "We are committed to restructuring and consolidating these eight coal mines in Pinglu County and plan to complete all these activities within three years," commented Mr. Zhu Liping, Chairman and CEO of Puda Coal. "We are finalizing our strategic plans, balancing our efforts to maximize our return on investment and to ensure the safety of the consolidation projects." About Puda Coal Inc. Puda Coal, through its subsidiaries, supplies premium high grade metallurgical coking coal used to produce coke for steel manufacturing in China. The Company currently possesses 3.5 million metric tons of annual coking coal capacity. The Company has recently moved upstream into coal mining. In May 2009, the Company entered into an equity transfer agreement to acquire 18% of Jianhe Coal. In September 2009, the Shanxi government approved the Company's plan to consolidate eight coal mines in Pinglu County, Shanxi Province. Shanxi Province provides 20 - 25% of China's coal output and supplies nearly 50% of China's coke. For more information, please visit http://www.pudacoalinc.com/ . FORWARD-LOOKING STATEMENTS The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward- looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. For example, our plan to acquire and consolidate coal mines and to complete the three phases of coal mine consolidation in three years, and the estimates with respect to the size of the mining areas, the reserve and the production capacity are subject to, among other things, the risks and uncertainties relating to the market and geological condition, due diligence, negotiation for definitive agreements, etc. which are beyond our control, as well as our management's ability and capacity to execute our coal mine acquisition strategy and manage the coal mine operations. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward- looking statements, even if new information becomes available in the future. For more information, please contact: Investor Relations Contact: Crocker Coulson, President CCG Investor Relations Tel: +1-646-213-1915 Email: Elaine Ketchmere, VP of Financial Writing Tel: +1-310-954-1345 Email: Web: http://www.ccgirasia.com/ Company Contact: Laby Wu, Chief Financial Officer, Director of Investor Relations Puda Coal, Inc. Tel: +86-10-6439-2405 Email: Web: http://www.pudacoalinc.com/ DATASOURCE: Puda Coal, Inc. CONTACT: Investor Relations Contact: Crocker Coulson, President, CCG Investor Relations, +1-646-213-1915, , or Elaine Ketchmere, VP of Financial Writing, +1-310-954-1345, ; Company Contact: Laby Wu, Chief Financial Officer, Director of Investor Relations, Puda Coal, Inc., +86-10-6439-2405, Web site: http://www.pudacoalinc.com/ http://www.ccgirasia.com/

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