L&L Energy Continues Consolidation, Enters MOU to Acquire the LuoZhou Mine

L & L Energy, Inc.

has signed MOU to acquire a 50% controlling interest of the LuoZhou Mine ("LuoZhou") in HeZhang County, Guizhou Province. The acquisition of LuoZhou will mark the Company's third transaction with Union Energy, a local partner. Previous transactions include the acquisition of the Weishe Mine ("Weishe") and a recently announced MOU to acquire controlling interest of the LaShu Mine ("LaShu"). Weishe, currently in production, is now operated by L&L as a model mine in the community; LaShu is scheduled for production in the fall of 2012. LuoZhou 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. These three mines, all located in the HeZhang County, are expected to produce more than 1 million tons of low sulfur, high BTU, anthracite coal each year. L&L will pay an earnest deposit of approximately $349,000 (RMB 2,200,000) for LuoZhou. The remaining balance will be paid in installments under other consideration, including payment-in-kind of non-strategically held interests, stock and/or cash. Terms for the remaining balance are being finalized.