L&L Management Repudiates GeoInvesting Allegations
L&L Energy (NASDAQ: LLEN) ("L&L" or the "Company") today management has provided a point-by-point rebuttal to the false and misleading GeoInvesting article posted on SeekingAlpha on September 19, 2013.
The Company is focused in particular on refuting two (2) allegations made by GeoInvesting. The first relates to L&L's ownership and operational status of the Hong Xing coal washing facility ("Hong Xing"). The second relates to the November 2012 transaction in which L&L transferred its ownership interests in the DaPing Coal mine and Zonelin Coking facility to Union Energy, in exchange for the LuoZhou and LaShu Coal mines. A full list of the allegations with responses is provided at the end of this response.
1. Hong Xing Washing Facility Ownership and Operational Status:
The allegation that Hong Xing was closed in 2012 is false. L&L confirms that Hong Xing operated during the entire fiscal year ended April 30, 2013. The Company temporarily suspended operations at Hong Xing in July 2013 in order to redirect corporate cash flow to its coal wholesale business. Hong Xing last processed 12,124 tons in June 2013 and 13,449 tons in May