Puda Coal Inc (PUDA)

[BiotechValues]

Puda Coal Closes Jianhe Coal Mine Acquisition

TAIYUAN, China, Dec. 7 /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 announced the closing of its 18% equity transfer agreement with Shanxi Jianhe Coal Industry Limited Company ("Jianhe Coal").

In May 2009, the Company entered into an equity transfer agreement ("the Agreement") to acquire 18% of Jianhe Coal. Pursuant to the Agreement, the stockholder owning the other 82% of Jianhe Coal guaranteed the Company first priority rights to purchase the remaining shares of Jianhe Coal within the 24-month period following execution of the Agreement. The Company will be paid proportionate semi-annual dividends based on its 18% ownership. Total dividends for Jianhe Coal will be no less than 80% of its annual net profit.

"Leveraging our status as a consolidator of eight coal mines in Pinglu County, we are applying to be a consolidator in the coal reserve area where Jianhe Coal is located," commented Mr. Zhu Liping, Chairman and CEO of Puda Coal. "We are confident that our strategic transition upstream into the coal mining business will increase our profitability and maximize our shareholder value."

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. 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/