L&L Updates LuoZhou Acquisition -- Improving Mining and Wholesale Operations

SEATTLE, July 2, 2012 /PRNewswire/ -- L & L Energy, Inc. (NASDAQ: "LLEN") ("L&L" or "Company"), a Seattle-based company with a five-year track record of profitable coal operations in China, announces that it will use an equity interest swap with Union Energy as part of the acquisition of the LuoZhou Mine.

In June 2012, Union Energy entered into two MOUs to sell controlling interest in two of its mines to L&L. One of which, the LuoZhou mine ("LuoZhou, the Mine"), is scheduled to begin full production in fall of 2012.

DaXing Co., L&L's recently established wholesale subsidiary in Guizhou, has entered into thermal coal contracts with large end users including, Datang Power Co. By acquiring LuoZhou and the Lashu Mine in near future, both of which produce high quality thermal coal, L&L will increase the available thermal coal for its wholesale operations, further increasing efficiency.

To update, L&L will swap non-strategically held interests in its coking coal mine in Guizhou as payments-in-kind, the Zone Lin coking facility, shares of L&L common stock and a cash deposit, in exchange for 50% controlling interest of the operations of LuoZhou. LuoZhou is designed to meet the higher government mining standards and produces low sulfur, high BTU thermal coal. The Mine is currently in trial production and will reach its approved rate of 150,000 tons per annum by fall of 2012 (on reserves of 27 million tons), with targeted expansion to 450,000 tons. When at full production, LuoZhou is expected to generate approximately US $70M a year in revenues, with an estimated net profit margin of 31%. The specific terms for this transaction have not been finalized and are subject to final reviews.

Union Energy will diversify its product portfolio and expand its customer base by acquiring coking facilities and coking coal mines.

L&L's Chairman and CEO, Dickson Lee, commented: "When completed, the acquisition of LuoZhou will substantially upgrade our existing mining portfolio's operations and better align our product mix to help supply increasing demand for thermal coal in the region. Union Energy has been a strong partner for L&L and this transaction will further cement our relationship."

Forward Looking Statements

The statements containing 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 that involve a number uncertainties. Actual results of the future events described in this document could differ materially. 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
[email protected]

SOURCE L & L Energy, Inc.