SOURCE: AAA Energy Inc.

October 04, 2007 06:00 ET

AAA Energy Inc. Undertakes China Moly Expansion

RENO, NV--(Marketwire - October 4, 2007) - AAA Energy Inc. (OTCBB: AAAE), a natural and mineral resource exploration company focused on discoveries in emerging energy frontiers and under-explored resource horizons, is pleased to announce that Mr. Siu Man Kwan, our key China adviser, has recently completed on the Company's behalf a preliminary prospecting trip to China with a view to help expand the Company's moly portfolio to include producing as well as "brownfields" exploration prospects in that country.

During his trip, Mr. Kwan narrowed his focus on exploration and producing molybdenum prospects in the Henan Province, the most populous province in China rich in mineral resources. Its reserves of molybdenum, tungsten, aluminum, refractory clay, coal and natural gas are among the largest in China. The province's Zhongyuan Oilfield is one of the largest oilfields in the country and its Pingdingshan Coal Mine is one of the four largest coal mines in China. Currently, half of the aluminum oxide output in China comes from Henan.

The region exhibits prolific molybdenum mineralization and is headquarters to the Luoyang Luanchuan Molybdenum Group Co., Ltd. (also known as "China Molybdenum"). China Molybdenum's Sandaozhuang Mine produces 24 million pounds of molybdenum per year. This mine is the basis of China Molybdenum's just completed IPO which raised over US$900 million on the Hong Kong Stock Exchange.

China Molybdenum's open-pit Sandaozhuang Mine in Henan Province, with an estimated mine life of 46 years, has world-class reserves including 498,000 tonnes of molybdenum and 506,000 tonnes of tungsten. In 2006, China Molybdenum also reached an agreement with Phelps Dodge (now Freeport McMoran) to build a molybdenum smelter project in Luoyang with a budgeted phase-one annual production capacity of 40,000 tons.

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 in 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.

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