Puda Coal Inc (PUDA)

[f5574dm]

Our cash balance was $39,429,000 as of September 30, 2008. We believe that our cash will be adequate to satisfy our anticipated cash requirements for fiscal 2008, including payment of the principal and interest on the notes, requirements to maintain current operations, complete projects already underway and achieve stated objectives or plans, commitment for capital or other expenditure and other reasonably likely future needs. Cash requirements for our long-term business needs, including the funding of capital expenditure and debt service for outstanding financings, are expected to be financed by a combination of internally generated funds, the proceeds from the sale of our securities, borrowings and other external financing sources, etc., although adequate financing may not be available to us on acceptable terms when we need it. Our opinion concerning our liquidity is based on current information. If the current information proves to be inaccurate, or if circumstances change, we may not be able to meet our cash needs