SOURCE: Puda Coal, Inc.

November 29, 2006 09:15 ET

Puda Coal, Inc. Achieves Sales to Another New Client; Third Such Announced in 2006

TAIYUAN CITY, CHINA -- (MARKET WIRE) -- November 29, 2006 -- Puda Coal, Inc. ("Puda" or the "Company") (OTCBB: PUDC), a leading supplier of China's highest grade metallurgical coking coal -- which is used to make coke for steel manufacturing, announced today that it has begun delivery of cleaned coking coal to Yatai Coke ("Yatai"). Puda launched the relationship with Yatai in Q3 '06 and delivered approximately 22,000 metric tons (MT) for the quarter. Puda expects to deliver approximately 20,000 MT to Yatai in Q4 '06, or approximately 42,000 MT on the year.

Puda's new business development efforts have met with significant success in the past year -- Yatai is the third new client announced in 2006. Relationships like that with Yatai also further diversify Puda's portfolio of clients, reducing the Company's dependence on sales to any one customer.

About Puda Coal, Inc.

Puda Coal, through its affiliates and controlled entities, supplies premium grade coking coal to the steel making industry for use in making coke. The Company currently possesses 2.7 million metric tons of annual coking coal cleaning capacity, and management believes it is the largest coking coal cleaning company in terms of capacity in Shanxi Province, China. Shanxi Province provides 20-25% of China's coal output and supplies nearly 50% of China's coke.


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