SOURCE: AAA Energy Inc.

April 16, 2008 08:30 ET

AAA Energy Inc. Enters Into Earn-In Arrangement on China Moly Prospect

RENO, NV--(Marketwire - April 16, 2008) - AAA Energy Inc. (OTCBB: AAAE) (FRANKFURT: AAV) (WKN: A0MUFJ), is pleased to announce that, through its China adviser Siu Man Kwan, the company has executed an agreement with Guangdong Da Hua Mining Enterprise Limited ("Da Hua") to earn-in up to a 75% equity interest in the Lechang Shanmudong Mine ("Shanmudong") hereafter referred to as the "Property."

Located in Guangdong Province, China, the Property is approximately 32 kilometers northeast of the township of Lechang. It can be reached by traveling east from Lechang along a system of highways and paved roads.

Shanmudong (Exploration License No.: 4400000730138) comprises a brownfields molybdenum-rich exploration concession area of 9.31 square kilometers and is undergoing significant artisan mining on over 20 exposed high-grade veins in the area. Prior work undertaken by the Guangdong Provincial Bureau of Geology and Mineral Resources report sample grades at Shanmudong of up to 1.11% copper and 0.34% molybdenum. This mine area, visited by Dr. Earl Abbott, our President, and his geological staff during both his November 2007 and March 2008 due diligence trips, will be our initial area of focus.

Under the terms of the earn-in arrangement, AAA Energy can acquire an initial 48% undivided equity interest in the Property by completing within a 2-year period an investment of RMB25 million (approximately US$3.4 million) in a newly-formed Chinese company ("Newco") that will hold the exploration and production licenses underlying the Property. Of the total RMB25 million invested, RMB10 million will be expended towards the approval by the Guangdong Provincial Bureau of Geology and Mineral Resources and transfer of a 30-year exploration and production license underlying the property into Newco. The balance RMB15 million will be utilized by Newco towards exploration, production and development expenditures on the Property.

Upon the completion of the initial earn-in investment, the Company can also acquire an additional 27%, for a total of 75%, by paying Da Hua an additional RMB15 million (approximately US$2 million) in cash or, at the option of Da Hua, its equivalent value in shares of AAA Energy.

Two summary geology reports on the Property have been provided by Da Hua and the Guangdong Provincial Bureau of Geology and Mineral Resources to AAA Energy. All were in Chinese and is being translated into English. Once completed, the company will disclose such data and interpretation in subsequent press releases.

Further Information

Please feel free to call Investor Relations in Europe at 0800 22 338 8259 and Investor Relations in North America at 1 516 659 6677 or visit us at www.aaa-energy.com.

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 in Europe:
    0800 22 338 8259
    Investor Relations in North America:
    1 516 659 6677