L&L Energy to Operate a New Coal Washing Facility

L&L Energy, Inc. LLEN has reached an agreement with HunTai Coal Ltd. in Yunnan Province to operate and manage HunTai's newly built 600,000-ton-capacity washing plant. L&L will receive a management fee for operating the plant and can earn revenues from wholesaling the washed coal. L&L's TaiFung Coal Ltd. subsidiary and HunTai entered into the agreement on July 10. HunTai, currently in trial operation, will expand L&L's coal washing operation in the region, providing the Company with further recognition as an industry leader. The agreement is expected to generate approximately $63 million of additional wholesale revenue and $5.9 million in net income, based on coal pricing of $160 per ton. Additionally, L&L will earn a management fee of $0.5 million for the next 12 months of operation.