SOURCE: AAA Energy Inc.

January 17, 2008 06:00 ET

AAA Energy Inc. Drops Interest in Salal Creek Molybdenum Prospect in British Columbia in Favor of China Prospects

RENO, NV--(Marketwire - January 17, 2008) - AAA Energy Inc. (OTCBB: AAAE) (FRANKFURT: AAV) (WKN: A0MUFJ) announces that it will drop further interest in its Salal Creek/Float Creek moly prospect (see news release dated September 18, 2007). Although the Company remains committed to molybdenum as a commodity, the Salal Creek Prospect was found not to fit into the Company's future plans. Instead, the Company will concentrate on China molybdenum prospects whose initial evaluations were positive in a recent trip to China by its President Dr. Earl Abbott (see news release dated December 12, 2007). Prospects evaluated by Dr. Abbott will be discussed in forthcoming news releases.

Recent due diligence by the Company on the Salal Creek Prospect disclosed that the property's location, some 70 kilometers north of Pemberton, B.C., is difficult and remote with alpine conditions and extremely steep terrain containing snowfields and glaciers. Access would require building some 9 kilometers of new road through National Forest lands adjacent to National Parks making permitting difficult, expensive, and time consuming. Although helicopter drilling is feasible and has been done before by other companies, the potential highly mineralized zone will require deep drilling and much bigger equipment requiring road building.

The molybdenum-bearing portion of the Salal Creek Prospect is part of a copper-molybdenum porphyry system and is not consistent with AAA Energy's target of a clean, molybdenum-only system like the world-class Climax-model molybdenum system that is AAA Energy's target.

Finally, with its US-based management team and logistics as well as related regulatory difficulties in managing and working on BC geological interests, it would be considered not in the best interest of the company to focus on a property considered inferior to the company's current roster of molybdenum prospects located principally in China, but with a few located in the United States.

China is the third-largest producer of molybdenum in the world, a specialty metal used for hardening steel. The white metal is valued for its anti-corrosive and strengthening properties and makes up two percent to ten percent of stainless steel. In 2004, China produced approximately 31,000 tonnes of molybdenum as compared with 30,600 tonnes in 2003. The country's identified reserves of approximately 8.55 Mt ranks second worldwide reserves. Three of the six largest producing molybdenum mines in the world are located in China: Luanchuan in the Henan Province, Daheishan in the Jilin Province (1.1 Mt); and Jinduicheng in the Shaanxi Province (970,000 t).

Further Information

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About AAA Energy Inc.

AAA Energy Inc. is a publicly traded mineral and natural resource exploration company with its head office located in Reno, Nevada. AAA Energy Inc. aims to secure and develop a portfolio of high quality resource properties globally and in under-explored resource horizons. AAA Energy Inc. trades on the NASDAQ OTC BB under the ticker symbol: AAAE.

On behalf of the Board

Dr. Earl Abbott, President

Forward-Looking Statements

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects," "intends," "plans," "may," "could," "should," "anticipates," "likely," "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company's belief that AAA Energy Inc. can identify and successfully negotiate leases for natural and mineral resource properties in China and elsewhere, and that the Company can participate in the exploration of these resource properties. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission.

Contact Information

  • Contacts:
    AAA Energy Inc.
    Investor Relations
    1-516-659-6677