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.

FORWARD-LOOKING STATEMENTS

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

Contact Information