SOURCE: Puda Coal, Inc.

April 12, 2006 07:15 ET

Puda Coal, Inc. Announces Newest and Largest Plant Has Begun Formal Production

Zhongyang Plant's 1.2M Metric Tons of Capacity Increases Puda's Total Capacity to 2.7M Metric Tons

TAIYUAN CITY, CHINA -- (MARKET WIRE) -- April 12, 2006 -- Puda Coal, Inc. ("Puda" or the "Company") (OTC BB: PUDC), a leading supplier of China's highest grade metallurgical coking coal -- which is used to make coke for the purposes of steel manufacturing -- announced today that its newest and largest coal cleaning facility, Zhongyang Plant, has now begun formal production. The plant's 1.2 million metric tons (MT) of annual capacity represents the culmination of a 440% increase in total production capacity from this time last year, and with it Puda has now achieved its expressed goal of expanding to 2.7 million MT of total coal cleaning capacity by early 2006.

The Zhongyang Plant, which began operations March 24, 2006, is producing to demand and already operating at 84% capacity, or approximately 2,800 MT of cleaned coal a day (84,000 tons per month).

On April 3, 2006, the first lot of cleaned coking coal was delivered to Baotou Iron & Steel Group, Puda's largest customer as announced previously.

"The Zhongyang Plant was the largest and most vital component of our planned capacity expansion," said Puda Chairman and Chief Executive Officer Zhao Ming. "With our new plant's production underway and the milestone of 2.7 million metric tons achieved, Puda is perfectly positioned to meet the surging demands of the Chinese Industrial Revolution."

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 annual production capacity of 2.7 million metric tons of coking coal, and management believes it 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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