L&L Energy Refutes Allegations Made by Glaucus Research

SEATTLE, Aug. 5, 2011 /PRNewswire/ -- L & L Energy, Inc., (Nasdaq: LLEN) ("L&L" or the "Company"), a U.S.-based company since 1995 with coal mining and distribution businesses in China, today issued a statement refuting the allegations made by Glaucus Research Group ("Glaucus").

The Company reiterated its comments that were given during its fiscal year 2011 conference call, stating that the Glaucus Research report, which was published earlier this week, is misleading and factually incorrect. The report accuses the Company of not owning some of its entities, bringing particular reference to its Zone Lin coking facility as well as its Hong Xing washing plant. The Company reaffirms its ownership and equity rights, and points to a recent legal opinion provided by a large and reputable firm in China, which provided confirmation of ownership to the Company's independent auditor as part of their FY 2011 year-end audit. Furthermore, the Company rejects any claims that the validity of the audited financial statements issued in the FY2011 10-K are in any way materially inaccurate.

Dickson Lee, L&L's Chairman and CEO, stated, "The report issued by Glaucus is misleading and factually incorrect. We stand by the validity of our audited financial statements and negate any allegation regarding material inaccuracy. The accusation that I, as Chairman and CEO, retain any of our entities in a sole proprietorship is also completely false and was verified by our independent auditors as part of their recent year-end audit."

Mr. Lee continued, "Furthermore, I find it irresponsible for a research firm to compare our cost structure to that of another Chinese coal company that operates in a completely different region, within a completely different business environment. Our strong local relationships and practice of leveraging the consolidation policies in South China creates an enormous opportunity for us to add existing and operating acquisitions at a very accretive price."

Mr. Lee added, "This dark cloud hanging over companies who have assets and/or operate in China has created issues that we never anticipated; our platform was developed to give investors an opportunity to invest in a U.S. company regulated under GAAP and the SEC that is taking advantage of the robust economic growth in China. L&L is truly an American company, run by U.S. citizens, and in many cases, with Secretary Norman Mineta, Ed Moy and Clayton Fong, former public servants who have served our country at its highest levels. It can be frustrating at times that we have been swept up in this broad generalization of companies with poor accountability and transparency. At L&L, we have been fastidious in not cutting corners and doing things the correct way. In the past year we have recruited and retained high-level management and board members who add tremendous experience and perspective to our team; we have also executed our organic growth plans and added accretive acquisitions. Our plans have not changed, the way we do business has not changed, and we are a stronger company than we were a year ago. We are confident L&L will pull through this turbulent period, and when the dust settles, we look forward to displaying the value that our shareholders expect."

About L & L Energy

L & L Energy (Nasdaq: LLEN), founded in 1995 and headquartered in Seattle, is primarily engaged in coal mining, washing, coking and distribution in Yunnan and Guizhou Provinces. The Company also has marketing offices in Beijing, Shenzhen, Guangzhou, Hong Kong and Taipei. For more information, see www.llenergyinc.com.

Contacts:
[email protected]
206-264-8065

SOURCE L & L Energy, Inc.