SOURCE: AAA Energy Inc.

April 30, 2008 12:22 ET

AAA Energy Inc. Reviews Geological Landscape for Its Shanmudong Moly Mine

RENO, NV--(Marketwire - April 30, 2008) - Further to its news release on April 15 2008, AAA Energy Inc. (OTCBB: AAAE) (FRANKFURT: AAV) (WKN A0MUFJ) is pleased to provide an initial geological review of the Lechang Shanmudong Mine ("Shanmudong") hereafter also referred to as the "Property."

Located in Lechang County, Guangdong Province, Shanmudong is about 32 air kilometers N38 E of Lechang city. The property is held by the owners under Certificate No. 4400000730138. Exploration rights are held until June 1, 2009. The northwest corner and the southeast corner of the property are located at:

--  113 31' 00" East Longitude and 25 21' 00" North Latitude and
--  113 33' 00" East Longitude and 25 19' 30" North Latitude,
    respectively,
    

and the area of the property is 9.31 km(2).

Access to the property is very good with a paved road crossing the entire property and connecting through a series of other paved roads and highways to the city of Lechang, a distance of about 40 kilometers by road. Numerous dirt roads and trails cross the property. Lechang city is served by the Baishidu train station on the Jingguang Railroad, the main north-south railroad in eastern China, running between Guangzhou and Beijing.

Regional Geology

Located within an east-west trending body of alteration and mineralization called the Jiufeng-Guang Shan structural belt, the mining district lies in the southwestern part of the altered area. It is at the northern end of Lechang Basin, on the east flank of the Yaoshan Anticline. It is the site of strong magmatic and tectonic activity that is developed along a northeast direction. Previous studies have shown that this strong activity occurred during the Yanshanian Era, equivalent to the Mesozoic Era. Previous studies have identified one mappable unit of coarse-grained granitic rock, and as many as three mappable units of fine-grained granitic rock. One of the fine-grained granitic units is closely related to copper and tungsten, polymetallic mineralization. This mineralized unit crops out in the central part of the mining district as well as in the southeast corner.

Property Geology

Hydrothermal deposits of the quartz vein-filling type as well as tungsten deposits occur on the property. Exposed sedimentary rocks are Devonian in age and composed, in descending order, of sandstone, limestone, marble, sandstone, and thin shale. The cover rocks of the mineralization were distributed in areas such as Guangsipai, Huangyu, Tongqianzi, and Pixia. The sedimentary rocks dip 15 to 78 to the northwest. Igneous biotite granitic rock outcrops cover a large area, a part of the so-called Jiufeng rock common in this area. Other igneous rocks include fine-grained muscovite granitic rock and lamprophyre dikes along with the biotite granitic rock that crops out in the northeastern part of the area.

Veins are produced in the biotite granitic rock outcrops because the impermeable metamorphic sandstone and silty sandstone cover is an impediment to the flow of hydrothermal fluids causing the creation of favorable conditions for mineralization within the biotite granitic body below. Wallrock alteration is mainly as greisen and cloudy silica.

Two parallel faults, F(1) and F(2), trending northeast-southwest and dipping steeply to the southeast, are recognized. Fault F(1) is the main ore-controlling fault. From the central mining area, the F(1) fracture extends to the northeast about 3 kilometers. Fault F(2) begins in the south of the mining district and extends to the about 6 kilometers. Within the fracture zones, alteration of the granite is strong and contains strong mineralization in the form of pyrite and chalcopyrite. In the northwest mining area, the main mineralization consisting of tungsten and copper occurs as vein fillings along a fault.

Under the terms of an 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). Two summary geology reports on the Property, provided by Da Hua (the joint venture partner) and the Guangdong Provincial Bureau of Geology and Mineral Resources, are currently 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