Puda Coal, Inc. Prices $13.6 Million Offering of Common Stock

USA - English

• USA - English

TAIYUAN, China, Feb. 12 /PRNewswire-Asia-FirstCall/ -- Puda Coal, Inc. (NYSE Amex: PUDA), a supplier of high grade metallurgical coking coal used to produce coke for steel manufacturing in China and a coal mine consolidator of eight coal mines in Pinglu County, Shanxi Province, today announced that the Company priced a public offering of 2,855,652 shares of its common stock at $4.75 per share. Brean Murray, Carret acted as lead manager and sole bookrunner and Newbridge Securities Corporation acted as co-manager in connection with the offering.

Puda Coal expects that the offering will yield net proceeds, after expenses, of $12,569,486, prior to the exercise of the underwriters' 30-day over-allotment option to purchase an additional 428,348 shares of Puda Coal's common stock. Puda Coal expects to use the net proceeds of the offering, together with available cash, to fund the purchase price of the previously-announced acquisition of two coal mines. The offering is expected to close on February 18, 2010, subject to customary closing conditions.

The securities described above are being offered by Puda Coal pursuant to registration statements on Form S-3 previously filed and declared effective by the Securities and Exchange Commission (SEC). The offering may be made only by means of the preliminary prospectus supplement and the related prospectus relating to the proposed offering, copies of which may be obtained, when available, from Brean Murray, Carret & Co., LLC, Attention: Minnie Huang, 570 Lexington Avenue, New York, NY 10022, by telephone at (212) 702-6667, or via email at [email protected] or from the offices of Newbridge Securities Corporation at 7600 Jericho Turnpike, Suite 202 Woodbury, NY 11797.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offer will be made only by means of a prospectus, including prospectus supplement, forming a part of the effective registration statement.

About Puda Coal Inc.

Puda Coal, through its subsidiaries, supplies premium high grade metallurgical coking coal used to produce coke for steel manufacturing in China. The Company currently possesses 3.5 million metric tons of annual coking coal capacity. The Company has recently moved upstream into coal mining. In May 2009, the Company entered into an equity transfer agreement to acquire 18% of Jianhe Coal. In September 2009, the Shanxi government approved the Company's plan to consolidate eight coal mines in Pinglu County, Shanxi Province. Shanxi Province provides 20 - 25% of China's coal output and supplies nearly 50% of China's coke. For more information, please visit http://www.pudacoalinc.com

Forward-looking Statements

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

    For more information, please contact:

    Investor Relations Contact:
     Crocker Coulson, President
     CCG Investor Relations
     Tel:   +1-646-213-1915
     Email: [email protected]

     Elaine Ketchmere,
     VP of Financial Writing
     Tel:   +1-310-954-1345
     Email: [email protected]
     Web:   http://www.ccgirasia.com

    Company Contact:
     Laby Wu, Chief Financial Officer, Director of Investor Relations
     Puda Coal, Inc.
     Tel:   +86-10-6439-2405
     Email: [email protected]
     Web:   http://www.pudacoalinc.com

SOURCE Puda Coal Inc.