L&L (LLEN) Enters Agreement Acquiring Majority Stake of the Weishe Mine

SEATTLE, Jan. 30, 2012 /PRNewswire/ — L & L Energy, Inc., (Nasdaq: LLEN) (“L&L” or the “Company”), a U.S.-based company founded in 1995 with coal mining and distribution businesses in China, announced today that it has entered an agreement acquiring 51% controlling interest of the Weishe coal mine (“The Mine” or “Weishe”) in China.

Weishe Mine Acquisition Highlights

• Purchase Price: Approximately $16.2 million, to be paid in full with 3 million LLEN shares at $5.396/share
• Interest %: 51% controlling interest
• Mine Reserves: 19 million tons in a 1.8 square KM site
• Design: 450,000 ton annually

Estimated FY2013 (Ended April 30) Impact of Weishe

• Production: 124,000 tons
• Price per ton: $158
• Revenues: $19.6 million
• EBITA: $9.8 million
• Cash flow attributable to L&L: $3.75 million

Weishe mine produces high quality, low sulfur, anthracite coal, and is one of three newly constructed mines owned by Union Energy located in Hezhang, Guizhou Province, China. The mine is expected to be expanded to its designed 450,000 tons of annual production over the next few years.

Dr. Syd Peng, L&L board member and world-renown mine expert, said, “I welcome the new Weishe mine, which is the first of many new mines we are targeting to upgrade our mining portfolio for better safety and mechanization.” Mr. Po Shui, owner of Union Energy, a local Guizhou company, stated, “I believe in L&L and am pleased to take common shares as payment. I also look forward to the possibility of joint venturing with L&L on two other Union Energy mines, one of which is scheduled to begin producing in the spring and the other in the fall of this year.”

Dickson Lee, Chairman and CEO of L&L Energy commented, “L&L Energy has been focused on executing our plan for the Guizhou consolidation. With the recently established Hong Gou operational office in Guizhou, the government’s approval of our new wholesales license, and now the addition of the Weishe Mine, we are positioning ourselves well to fully execute the two one millions ton wholesale agreements negotiated in the fall of 2011,” Lee continued. “The management team at the Weishe mine is very strong and will be excellent addition to L&L as we scale at a faster pace. To share in our excitement, we invite investors to visit our new operations this summer.”

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