Second Quarter 2010 Highlights
    -- Second quarter revenue increased 71.5% year over year to $82.3 million
    -- Gross profit increased 235.2% year over year to $12.1 million
    -- Gross margin increased to 14.7% from 7.5% a year ago
    -- Operating income grew 291.0% year over year to $10.4 million
    -- Net income rose 400.5% to $8.7 million from $1.7 million in the second
       quarter of 2009
    -- Excluding non-cash gains related to the fair value of derivative
       warrants, adjusted net income rose 295.5% to $7.3 million, or $0.36
       per diluted share
    -- Sales of cleaned coal increased 36.5% year over year to 601,000 metric
       tons (MT)
    -- Average selling price of cleaned coal grew 25.7% year over year to $137
       per MT
    -- Acquired 100% of the assets and mining rights of the Da Wa Coal and
       Guanyao Coal mines in Pinglu County for an aggregate purchase price of
       $42.0 million
    -- Strengthened its management team with the addition of Irene Cheong as
       Financial Controller

"Our coal washing operations performed well in the second quarter of 2010, reflecting the continued recovery in the steel industry. Increased volume and a higher average selling price of cleaned coal resulted in a significant increase in our profitability this quarter," commented Mr. Liping Zhu, President and CEO of Puda Coal. "We continued to move forward with our coal mine consolidation projects, acquiring the assets and mining rights of the first two coal mines in Pinglu County. Furthermore, we recently entered into an investment cooperation agreement to develop the remaining coal mines in Pinglu County, which provides us with the capital we need to acquire and develop all six mines simultaneously."

Second Quarter 2010 Results

For the quarter ended June 30, 2010, net revenue increased 71.5% to $82.3 million, compared to $48.0 million in the second quarter of 2009. Revenue growth was driven by increases in sales volume and the average selling price of cleaned coal. Sales of cleaned coal increased 36.5% to 601,000 MT, compared to 440,000 MT in the second quarter of 2009. The average selling price rose 25.6% to $137 per MT, compared to $109 per MT (after adjusting for exchange rate differences) in the same quarter last year.

Gross profit for the second quarter of 2010 expanded 235.2% to $12.1 million, compared to $3.6 million in the second quarter of 2009. Gross margin increased 7.2 percentage points to 14.7%, as compared to 7.5% in the comparable period of 2009. The increase was mainly attributable to an increase in the average selling price of cleaned coal, which exceeded the increase in the average cost of raw coal in the second quarter of 2010.

Operating expenses for the second quarter of 2010 rose 76.5% to $1.7 million, compared to $0.9 million in the second quarter of 2009. Selling expenses rose 59.5% year over year to $0.9 million, due to an increase in sales volume. General and administrative expenses increased 99.0% year over year to $0.8 million, primarily due to higher stock compensation expenses and professional fees.

Operating income for the second quarter of 2010 increased 291.0% to $10.4 million, compared to $2.7 million in the comparable period of 2009. Operating margin expanded 7.1 percentage points to 12.7% in the second quarter of 2010 from 5.6% in the second quarter of 2009.

During the second quarter of 2010, the Company recorded a non-cash gain of $1.3 million related to the change in fair value of the derivative warrants issued in November 2005, as compared to a corresponding loss of $121,000 in the second quarter of 2009.

Income tax expense for the second quarter of 2010 increased 287.0% to $2.7 million, compared to $0.7 million in the same period last year, primarily due to the increase in operating profit to $10.9 million in the second quarter of 2010 from $2.8 million in the second quarter of 2009.

Net income increased 400.5% to $8.7 million, or $0.36 per diluted share, compared to $1.7 million, or $0.11 per diluted share, in the second quarter of 2009. Diluted earnings per share were calculated using weighted average shares of 20,360,158 and 15,370,319 for the quarters ended June 30, 2010 and June 30, 2009, respectively.

Excluding non-cash gains or losses in the fair value of derivative warrants, adjusted net income rose 295.5% to $7.3 million, or $0.36 per diluted share, compared to adjusted net income of $1.9 million, or $0.12 per diluted share, in the second quarter in 2009.

Six Months Results

Net revenue was $144.3 million in the first half of 2010, up 47.7% from $97.7 million in the first half of 2009. Gross profit was $22.3 million, or 15.5% of revenue, up 199.0% from $7.5 million, or 7.6% of revenue, in the first half of 2009. Operating income was $19.5 million, or 13.5% of revenue, up 247.0% from $5.6 million, or 5.7% of revenue, in the first half of 2009. Net income increased 266.6% to $14.1 million, or $0.72 per diluted share, compared to $3.8 million, or $0.25 per diluted share, in the first half of 2009. Excluding non-cash gains or losses in the fair value of derivative warrants, adjusted net income rose 252.9% to $14.0 million, or $0.72 per diluted share, compared to adjusted net income of $4.0 million, or $0.26 per diluted share, for the first half of 2009.

Financial Condition

As of June 30, 2010, Puda Coal had $70.3 million in cash and cash equivalents, compared to $19.9 million at year-end 2009. Working capital was $98.0 million and a current ratio of 4.5:1. Long-term debt, excluding the current portion, was $41.2 million. At June 30, 2010, shareholders' equity was $130.5 million, up from $84.0 million at the end of 2009.

In the first half of 2010, the Company generated $16.4 million in cash from operating activities, compared to cash used in operating activities of $12.7 million in the same period last year. The used $27.2 million in cash for investing activities the first half of 2010, representing the second installment payments for the Da Wa Coal and Guanyao Coal mines in Pinglu County. The remaining payments for these two mines of approximately $8.4 million will be made upon the one-year anniversary of the completion of the transfer of the mines.

Net cash provided by financing activities was $61.0 million for the six months ended June 30, 2010 and includes $14.5 million in cash proceeds from the sale of common stock, $4.7 million from the exercise of warrants, a $35.4 million loan from the Company's significant shareholder and Chairman of the board of directors, Mr. Ming Zhao, and a $7.0 million increase in the registered capital of the Company's 90% subsidiary, Shanxi Puda Coal Group Co., Ltd. ("Shanxi Coal"), to meet new capital requirements for coal consolidators enacted by the Shanxi provincial government earlier this year.

Coal Mine Consolidation Project Status

In order to improve production efficiency, workplace safety and reduce coal mine accidents, in early 2009, the Shanxi provincial government adopted a policy requiring mergers and acquisitions of smaller coal mines in Shanxi Province. Pursuant to the government policy, Shanxi Coal was appointed as a consolidator of eight thermal coal mines located in Pinglu County in southern Shanxi Province (the "Pinglu Project"). Under the Pinglu Project, Shanxi Coal will acquire and consolidate eight thermal coal mines into five mines with approximate reserves of 163.9 million MT, based on government records. In early 2010, Shanxi Coal received the government's approval to consolidate four metallurgical coal mines into one large metallurgical mining operation representing total recoverable reserves of 23.7 million MT (the "Jianhe Project"). Below is an update of the progress of the Pinglu Project and Jianhe Project.

Pinglu Project Phase I

In June 2010, Shanxi Coal acquired 100% of the assets and mining rights of the Da Wa Coal Industry Co., Ltd. and Pinglu County Guanyao Coal Industry Co., Ltd., ("Dawa Coal and Guanyao Coal") located in Pinglu County, for an aggregate purchase price of $41.7 million.

Shanxi Coal's on-site team has already begun necessary mine maintenance and construction in the permitted areas while awaiting the remaining permits. Shanxi Coal has obtained necessary approvals from both county and municipal governments for the transitional production permit and is waiting for final approval from the provincial government, which it expects to obtain in the near future. Once the transitional production permit is granted, the coal mines can resume production under the currently approved capacity of 450,000 MT per year. Meanwhile, Shanxi Coal has submitted the required documents to the government for the coal mine upgrade permit. Upon receipt of the coal mine upgrade permit, Shanxi Coal will begin expanding production capacity of the mines to 900,000 MT per year.

Pinglu Project Phase II

The remaining six coal mines of the Pinglu Project will be consolidated into three larger thermal coal mining operations. The production capacity of the six mines is 1.2 million MT per year prior to consolidation and will be expanded to 2.7 million MT following consolidation. Shanxi Coal is in active discussions with each of the six coal mine owners and expects to finalize definitive acquisition agreements in the near term.

On August 1, 2010, Shanxi Coal signed an investment cooperation agreement to co-develop Phase Two of Pinglu Project with Mr. Ming Zhao, Chairman of Puda Coal Inc., and Mr. Jianping Gao, an unrelated party. Pursuant to the investment cooperation agreement, Shanxi Coal is responsible for 40% of the total investment in the Phase Two of Pinglu Project, Mr. Zhao is responsible for 30% and Mr. Gao is responsible for the remaining 30%. Shanxi Coal estimates that the total purchase price for the six Pinglu mines to be $130 to $160 million, with additional funds required to construct the target coal mines. Shanxi Coal will control and manage the Phase Two of Pinglu project.

Shanxi Coal has begun the necessary steps to apply for the transitional production permit. It has assigned employees on site, formed the safety management team and is actively verifying asset status and begun drafting the safety and operational policies. Concurrently, Shanxi Coal is preparing the required documents to apply for the upgrade permit, including the safety analysis reports, environmental assessments, preliminary construction and expansion proposals and geological exploration and data collection.

Jianhe Project

Shanxi Coal will consolidate four metallurgical coal mines in Huozhou County into one large metallurgical mining operation. Production capacity of the four mines will be increased from 720,000 MT to 900,000 MT. Similar to the Pinglu Project, Shanxi Coal has begun the necessary steps to apply for the transitional production and coal mine upgrade permits. Shanxi Coal is actively engaged in negotiations with the current mine owners and expects acquisition agreements to be finalized this year. Although it is early in the process, the Company expects total investment required for the target mines assets purchase to be between $130 million to $150 million.

Business Outlook

"In the second half of 2010, we expect our coal washing operations to continue to perform well. Despite some indications of a slow down in the real estate market, we expect China's steel-intensive industries to exhibit strong demand in the second half of the year," said Mr. Zhu. "We are moving forward with our coal mine consolidation projects and will continue the preconstruction work as we await the required government approvals. We believe that we have strong execution capabilities and we expect that we will continue to make substantial progress once the approvals are obtained. We expect to receive the transitional production permit and resume production for the first two Pinglu County mines in the near term. We continue negotiations with the owners of the remaining six coal mines in Pinglu County as well as the four coal mines in Huozhou County."

Upcoming Events

Puda Coal will present at 2010 ROTH Fall Conference in Maui, Hawaii from September 1-6, 2010 and at the Rodman & Renshaw Annual Global Conference in New York, NY from September 12-15, 2010. Management will be available for one-on-one meetings at both conferences.

Conference Call

The Company will host a conference call to discuss its second quarter 2010 financial results on Monday, August 16, 2010 at 10:00 a.m. Eastern Time. To participate in the live conference call, please dial (877) 409-5558 (international callers dial (706) 679 - 8017) approximately five to ten minutes prior to the start of the call and enter passcode 926 861 33. A replay will be available for 14 days starting on Monday, August 16, 2010 at 11:00 a.m. Eastern Time and can be accessed by dialing (800) 642-1687 (international callers dial (706) 645-9291) and entering passcode 926 861 33.

About Puda Coal, Inc.

Puda Coal, through its subsidiaries, supplies premium high grade metallurgical coking coal used to produce coke for steel manufacturing in China. The Company currently possesses 3.5 million metric tons of annual coking coal capacity. The Company has recently moved upstream into coal mining, as a consolidator and acquirer of coal mines in Shanxi Province, including the Pinglu projects and the Jianhe projects. On September 30, 2009, Shanxi Coal, a 90% indirect subsidiary of the Company, was appointed by the Shanxi provincial government as an acquirer and consolidator of eight thermal coal mines located in Pinglu County in southern Shanxi Province. Shanxi Coal plans to consolidate the eight coal mines into five, increasing their total annual capacity from approximately 1.6 million to 3.6 million metric tons. Shanxi Coal received another approval by the Shanxi provincial government to consolidate four additional coking coal mines into one coal mine in Huozhou County. After the completion of the consolidation, the Jianhe project is expected to increase the total annual capacity from 720,000 metric tons to 900,000 metric tons, according to the Shanxi provincial government's approval. For more information, please visit http://www.pudacoalinc.c... .

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. For example, our expectation that China's steel-intensive industries will exhibit strong demand is subject to the general economic conditions of China, which is not always predictable. In addition, our plan to acquire and consolidate the target coal mines are subject to the risks and uncertainties relating to the market and geological condition, receipt of requisite government approvals, due diligence, negotiation for definitive agreements, etc. which are beyond our control, as well as our management's ability and capacity to execute our coal mine acquisition strategy and manage the coal mine operations. 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.

Use of Non-GAAP Financial Information

GAAP results for the three and six months ended June 30, 2010 and 2009 include non-cash gains and losses related to the change in fair value of the Company's warrants. To supplement the Company's condensed consolidated financial statements presented on a GAAP basis, the Company has provided non-GAAP financial information excluding the impact of these items in this release, which are adjusted net income and diluted earnings per share. The Company's management believes that these non-GAAP measures provide investors with a better understanding of how the results relate to the Company's historical performance. The additional adjusted information is not meant to be considered in isolation or as a substitute for GAAP financials. The adjusted financial information that the Company provides also may differ from the adjusted information provided by other companies. Management believes that these adjusted financial measures are useful to investors because they exclude non-cash expenses that management excludes when it internally evaluates the performance of the Company's business and makes operating decisions, including internal budgeting, and performance measurement, as these measures provide a consistent method of comparison to historical periods. As a result, the provision of these adjusted measures allows investors to evaluate the Company's performance using the same methodology and information as that used by the Company's management. Moreover, management believes that these adjusted measures reflect the essential operating activities of the Company. Adjusted measures are subject to inherent limitations because they do not include all of the expenses included under GAAP and because they involve the exercise of judgment of which charges are excluded from the adjusted financial measure. However, the Company's management compensates for these limitations by providing the relevant disclosure of the items excluded. A reconciliation of each adjusted measures to the nearest GAAP measure appears in the table below.

                         PUDA COAL, INC. AND SUBSIDIARIES
                      RECONCILIATION OF ADJUSTED NET INCOME

                                      Three months Ended    Six Months Ended
                                             June 30,             June 30,
    US$ - thousands, except per
     share data                           2010     2009       2010      2009

    Net income from consolidated
     statement of operations             8,653    1,729     14,097     3,845
    Non-cash adjustment - derivative
     unrealized fair
    value (gain)/loss for warrants
     issued                             (1,337)     121       (130)      113
    Adjusted net income excluding
     non-cash item                       7,316    1,850     13,967     3,958

    Adjusted earnings per share -
     diluted                             $0.36    $0.12      $0.72     $0.26
    Weighted average shares
     Outstanding - '000                 20,360   15,370     19,379    15,361



                                PUDA COAL, INC.
              UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
          For the three and six months ended June 30, 2010 and 2009
       (In thousands of United States dollars, except per share data)

                                       Three      Three       Six        Six
                                      months     months     months     months
                                       ended      ended      ended      ended
                                     June 30,   June 30,   June 30,   June 30,
                                       2010       2009       2010       2009

    NET REVENUE                      $82,319    $47,990    144,290     97,711

    COST OF REVENUE                   70,246     44,388    121,943     90,238

    GROSS PROFIT                      12,073      3,602     22,347      7,473

    OPERATING EXPENSES
    Selling expenses                     850        533      1,488      1,110
    General and administrative
     expenses                            804        404      1,362        745

    TOTAL OPERATING EXPENSES           1,654        937      2,850      1,855

    INCOME FROM OPERATIONS            10,419      2,665     19,497      5,618

    INTEREST INCOME                       61         23         83         56

    INTEREST EXPENSE                    (432)      (132)      (549)      (269)

    DERIVATIVE UNREALIZED FAIR
     VALUE GAIN/(LOSS)                 1,337       (121)       130       (113)

    INCOME BEFORE INCOME TAXES        11,385      2,435     19,161      5,292

    TAXATION                          (2,732)      (706)    (5,064)    (1,447)

    NET INCOME                         8,653      1,729     14,097      3,845

    OTHER COMPREHENSIVE INCOME
    Foreign currency translation
     adjustment                          794        (30)       708       (196)

    COMPREHENSIVE INCOME              $9,447     $1,699    $14,805     $3,649

    EARNINGS PER SHARE
      - BASIC                          $0.44      $0.11      $0.75      $0.25
      - DILUTED                        $0.36      $0.11      $0.72      $0.25

    WEIGHTED AVERAGE NUMBER OF
     SHARES OUTSTANDING
      - BASIC                     19,812,130 15,353,176 18,830,771 15,343,482
      - DILUTED                   20,360,158 15,370,319 19,378,799 15,360,625



                                 PUDA COAL, INC.
                          CONSOLIDATED BALANCE SHEETS
                      June 30, 2010 and December 31, 2009
                    (In thousands of United States dollars)

                                                        June 30,  December 31,
                                                          2010         2009
                                                      (Unaudited)
    ASSETS
    CURRENT ASSETS
    Cash and cash equivalents                            $70,339     $19,918
    Accounts receivable                                   34,505      25,340
    Advances to suppliers
      - Related parties                                    1,088       1,020
      - Third parties                                      4,294       3,552
    Inventories                                           15,582      22,531

    Total current assets                                 125,808      72,361

    PREPAYMENTS                                               --       6,259

    PROPERTY, PLANT, EQUIPMENT AND MINING ASSETS          55,109      13,986

    INTANGIBLE ASSETS                                      3,927       3,945

    INVESTMENT, AT COST                                   14,746      14,650

    TOTAL ASSETS                                        $199,590    $111,201

    LIABILITIES AND STOCKHOLDERS' EQUITY
    CURRENT LIABILITIES
    Current portion of long-term debt
      - Related party                                     $1,300      $1,300
    Accounts payable                                       7,180       4,839
    Other payables
      - Related parties                                      929       1,031
      - Third parties                                      2,705       2,650
    Assets acquisition price payable                       8,399          --
    Accrued expenses                                         702       1,076
    Income taxes payable                                   2,749       1,091
    VAT payable                                            1,397       1,135
    Derivative warrants                                    2,464       7,620

    Total current liabilities                             27,825      20,742

    LONG-TERM LIABILITIES
    Long-term debt
      - Related party                                     41,241       6,500

    Total liabilities                                     69,066      27,242

    COMMITMENTS AND CONTINGENCIES

    STOCKHOLDERS' EQUITY
    Preferred stock, authorized 5,000,000
     shares, par value $0.01, issued and
     outstanding None                                         --          --
    Common stock, authorized 150,000,000
     shares, par value $0.001, issued and
     outstanding 20,257,665 (2009: 15,828,863)                20          15
    Paid-in capital                                       66,967      35,212
    Statutory surplus reserve fund                         1,366       1,366
    Retained earnings                                     51,330      37,233
    Accumulated other comprehensive income                10,841      10,133

    Total stockholders' equity                           130,524      83,959

    TOTAL LIABILITIES AND STOCKHOLDERS'
     EQUITY                                             $199,590    $111,201



                                   PUDA COAL, INC.
                  UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
                  For the six months ended June 30, 2010 and 2009
                     (In thousands of United States dollars)

                                                      Six months ended June 30,
                                                            2010        2009
    CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income                                           $14,097      $3,845
    Adjustments to reconcile net income to net cash
     provided by operating activities
    Amortization of land-use rights                           44          44
    Depreciation                                             845         839
    Allowance for doubtful debts                              --          41
    Derivative unrealized fair value (gain)/loss            (130)        113
    Stock compensation                                       393          33
    Issue of common stock/warrants to directors               --          86
    Changes in operating assets and liabilities:
      Increase in accounts receivable                     (8,941)    (13,620)
      Decrease in other receivables                           --           7
      (Increase)/decrease in advances to suppliers          (775)      2,563
      Decrease/(increase) in inventories                   7,051      (5,309)
      Increase in accounts payable                         2,294       1,377
      Decrease in accrued expenses                          (295)       (235)
      Decrease in other payables                             (69)       (313)
      Increase/(decrease) in income tax payable            1,640        (612)
      Increase/(decrease) in VAT payable                     253      (1,511)

    Net cash provided by/(used in) operating
     activities                                           16,407     (12,652)

    CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of mining rights and mining assets          (27,219)         --
    Prepayment for equity purchase of coal mine               --      (8,781)

    Net cash used in investing activities                (27,219)     (8,781)

    CASH FLOWS FROM FINANCING ACTIVITIES:
    Exercise of warrants                                   4,679          --
    Issue of common shares                                14,538          --
    Increase in registered capital of Shanxi Coal          7,041          --
    Borrowings from related party                         35,391          --
    Repayment of long-term debt                             (650)       (650)

    Net cash provided by/(used in) financing
     activities                                           60,999        (650)

    Effect of exchange rate changes on cash                  234        (173)

    Net increase/(decrease) in cash and cash
     equivalents                                          50,421     (22,256)
    Cash and cash equivalents at beginning of period      19,918      39,108

    Cash and cash equivalents at end of period           $70,339     $16,852

    Supplementary cash flow information
    Cash paid during the period for:
        Interest                                            $303        $269
        Income taxes                                      $3,424      $2,058


    For more information, please contact:

    Investor Relations Contact:
     Elaine Ketchmere, Partner
     CCG Investor Relations
     Phone: +1-310-954-1345
     Email: elaine.ketchmere@ccgir.com

     Crocker Coulson, President
     Phone: +1-646-213-1915
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

    Company Contact:
     Laby Wu, Chief Financial Officer, Director of Investor Relations
     Puda Coal, Inc.
     Phone: +86-10-6439-2405
     Email: labywu@gmail.com
     Web:   http://www.pudacoalinc.com

TAIYUAN, China, May 13 /PRNewswire-Asia-FirstCall/ -- Puda Coal, Inc. (NYSE:PUDA - News), a supplier of high grade metallurgical coking coal used to produce coke for steel manufacturing in China and consolidator of twelve coal mines in Shanxi Province, today announced its 2010 first quarter financial results.

    First Quarter 2010 Highlights
    -- First quarter revenue increased 24.6% year over year to $62.0 million
    -- Gross profit increased 165.4% year over year to $10.3 million
    -- Gross margin increased 8.8% year over year to 16.6%
    -- Operating income grew 207.4% year over year to $9.1 million
    -- Net income gained 157.3% to $5.4 million, or $0.31 per fully diluted
       share, as compared to $2.1 million, or $0.14 per fully diluted share,
       in the first quarter of 2009
    -- Excluding the $1.2 million in non-cash expense related to the fair
       value loss of derivative warrants, adjusted net income increased 215.5%
       to $6.7 million, or $0.37 per fully diluted share, as compared to $2.1
       million, or $0.14 per fully diluted share, in the same period last year
    -- Sales of cleaned coal increased 10.3% year over year to 503,000 metric
       tons (MT)
    -- Average selling price of cleaned coal grew 12.8% year over year to $123
       per MT

"Puda Coal began 2010 with solid revenue and net income growth, thanks to stronger cleaned coal sales volume and higher selling prices reflecting the continuing recovery of China's steel industry," commented Mr. Liping Zhu, President and CEO of Puda Coal. "Supported by our coal washing business and coal mine consolidation projects, we are well-positioned for continued growth in the remaining quarters of 2010 and beyond."

First Quarter 2010 Results

For the quarter ended March 31, 2010, total revenue increased 24.6% to $62.0 million, compared to $49.7 million in the first quarter of 2009. The increase in revenue year over year was driven by the increases in sales volume and the average selling price of cleaned coal. Sales of cleaned coal increased 10.3% to 503,000 MT, compared to 456,000 MT in the first quarter of 2009. The average selling price rose 12.8% to $123 per MT, compared to $109 per MT (after adjusting for exchange rate differences) in the same quarter last year.

Gross profit for the first quarter of 2010 expanded 165.4% to $10.3 million, compared to $3.9 million in the first quarter of 2009. Gross margin gained 8.8% to 16.6%, as compared to 7.8% in the comparable period of 2009.

The increase was mainly attributable to an increase in the average selling price of cleaned coal.

Operating expenses for the first quarter of 2010 grew 30.3% to $1.2 million, compared to $0.9 million in the first quarter of 2009. Selling expenses rose 10.6% year over year to $0.6 million, due to an increase in sales volume. General and administrative expenses increased 63.6% year over year to $0.6 million, primarily due to higher stock compensation expenses. Operating income for the first quarter of 2010 increased 207.4% to $9.1 million, compared to $3.0 million in the comparable period of 2009. Operating margin expanded 7.7% to 14.6% in the first quarter of 2010, compared to 6.9% in the first quarter of 2009.

During the first quarter of 2010, the Company recorded a non-cash expense of $1.2 million related to the loss in fair value of the derivative warrants issued in November 2005, as compared to a corresponding gain of $8,000 in the first quarter of 2009.

Income tax expense for the first quarter of 2010 increased 214.7% to $2.3 million, compared to $0.7 million in the same period last year primarily due to the increase in operating profit of Shanxi Coal to $9.3 million in the first quarter of 2010 (after adjusting for exchange rate differences) from $2.9 million in the first quarter of 2009.

Net income increased 157.3% to $5.4 million, or $0.31 per fully diluted share, compared to $2.1 million, or $0.14 per fully diluted share, in the first quarter of 2009.

Adjusted net income, excluding non-cash gains or losses in the fair value of derivative warrants, rose 215.5% to $6.7 million, or $0.37 per diluted share, compared to adjusted net income of $2.1 million, or $0.14 per diluted share, for the first quarter in 2009. Diluted earnings per share were calculated using weighted average shares of 18,594,264 and 15,378,544 for the quarters ended March 31, 2010 and March 31, 2009, respectively.

Financial Condition

As of March 31, 2010, Puda Coal had $49.4 million in cash and cash equivalents, compared to $19.9 million at year-end 2009. Working capital was $76.0 million and a current ratio of 4.4:1. Long-term debt, excluding the current portion, was $6.2 million. Shareholders' equity was $108.2 million, an increase from $84.0 million at the end of 2009.

In the first quarter of 2010, the Company generated $13.3 million in cash from operating activities, compared to cash used in operating activities of $14.3 million in the same period last year. Net cash provided by financing activities of $16.3 million for the three months ended March 31, 2010 includes $14.5 million from the sale of 3,284,000 shares of common stock and approximately $2.1 million from the exercise of warrants, which were offset by $0.3 million for the repayment of the long-term debt to Resources Group.

Recent Events

As previously announced by the Company, on May 7, 2010, the Company's wholly-owned subsidiary, Shanxi Putai Resources Limited Co. ("Putai") entered into a loan agreement with Mr. Ming Zhao, the founder, significant shareholder and Chairman of the board of directors of Puda Coal. Under the agreement, Mr. Ming Zhao agreed to provide Putai with an unsecured loan in the aggregate principal amount of RMB 240 million (USD $35.2 million) for an 18-month term at an annual interest rate of 6%. The terms of the loan agreement have been reviewed and approved by the Company's audit committee composed of three independent directors.

As part of the Shanxi provincial government's policies to consolidate and redevelop the coal mining industry, new guidelines were enacted by the government in February 2010 to require the registered capital of coal mine consolidators to be at least RMB200 million (US$29.3 million). The current registered capital of Shanxi Coal is RMB22.5 million (about US$3.3 million). Since Shanxi Coal has been previously approved as an acquirer and consolidator of two coal mine projects, Shanxi Coal plans to increase its registered capital to RMB500 million (US$73.2 million), 90% of which (i.e., RMB430 million) will be funded by Shanxi Coal's 90% shareholder, Putai, and 10% of which (i.e., RMB48 million) will be funded by Shanxi Coal's 10% shareholder, Mr. Ming Zhao and his brother, Mr. Yao Zhao. The loan will be used to pay for the increase of the registered capital of Putai's 90% subsidiary, Shanxi Puda Coal Group Co., Ltd. ("Shanxi Coal").

Business Outlook

"We expect the recovering steel industry to fuel demand for coking coal and we have a positive outlook for our coal washing operations in 2010," said Mr. Zhu. "We continue to make progress on our coal mine consolidation projects. The asset transfers of the Da Wa Coal and Guanyao Coal mines in Pinglu County were completed in April and we will pay for the assets transfer when the additional registered paid-in-capital of Shanxi Coal is confirmed by the Shanxi government office. Pre-construction activities at these two mines are currently underway. We are working closely with the Shanxi government and expect to receive approval for the business license transfers for all eight of the Pinglu County mines in the near term."

Upcoming Events

Puda Coal will present at the Second Annual China Rising Investment Conference hosted by CCG Investor Relations on May 17, 2010 and Oppenheimer 4th Annual China Dragon Call Conference on May 18, 2010. Both conferences will be held in New York, New York and management will be available for one-one one meetings. Additionally, Puda Coal will hold its annual meeting of stockholders on May 21, 2010 in New York, New York at the New York Times Building. During the meeting of stockholders, the Company will answer questions from investors and analysts.

Conference Call

The Company will host a conference call at 9:00 a.m. ET on Thursday, May 13, 2010 to discuss first quarter 2010 results. To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: (877) 409-5558. International callers should dial (706) 679-8017. When prompted by the operator, mention conference passcode 749 192 14. If you are unable to participate in the call at this time, a replay will be available for 14 days starting on Thursday, May 13, 2010 at 10:00 a.m. ET. To access the replay, please dial (800) 642-1687. International callers should dial (706) 645-9291. When promoted, enter conference passcode 749 192 14.

About Puda Coal, Inc.

Puda Coal, through its subsidiaries, supplies premium high grade metallurgical coking coal used to produce coke for steel manufacturing in China. The Company currently possesses 3.5 million metric tons of annual coking coal capacity. The Company has recently moved upstream into coal mining, as a consolidator and acquirer of coal mines in Shanxi Province, including the Pinglu projects and the Jianhe projects. On September 30, 2009, Shanxi Coal, a 90% indirect subsidiary of the Company, was appointed by the Shanxi provincial government as an acquirer and consolidator of eight thermal coal mines located in Pinglu County in southern Shanxi Province. Shanxi Coal plans to consolidate the eight coal mines into five, increasing their total annual capacity from approximately 1.6 million to 3.6 million metric tons. Shanxi Coal received another approval by the Shanxi provincial government to consolidate four additional coking coal mines into one coal mine in Huozhou County. After the completion of the consolidation, the Jianhe project is expected to increase the total annual capacity from 720,000 metric tons to 900,000 metric tons, according to the Shanxi provincial government's approval. For more information, please visit http://www.pudacoalinc.c...

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. For example, our plan to acquire and consolidate the target coal mines are subject to the risks and uncertainties relating to the market and geological condition, due diligence, negotiation for definitive agreements, etc. which are beyond our control, as well as our management's ability and capacity to execute our coal mine acquisition strategy and manage the coal mine operations. 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.

Use of Non-GAAP Financial Information

GAAP results for the three months ended March 31, 2010 and 2009 include non-cash gains and losses related to the change in fair value of the Company's warrants. To supplement the Company's condensed consolidated financial statements presented on a GAAP basis, the Company has provided non-GAAP financial information excluding the impact of these items in this release, which are non-GAAP net income and non-GAAP diluted earnings per share. The Company's management believes that these non-GAAP measures provide investors with a better understanding of how the results related to the Company's historical performance. The additional adjusted information is not meant to be considered in isolation or as a substitute for GAAP financials. The adjusted financial information that the Company provides also may differ from the adjusted information provided by other companies. Management believes that these adjusted financial measures are useful to investors because they exclude non-cash expenses that management excludes when it internally evaluates the performance of the Company's business and makes operating decisions, including internal budgeting, and performance measurement, as these measures provide a consistent method of comparison to historical periods. As a result, the provision of these adjusted measures allows investors to evaluate the Company's performance using the same methodology and information as that used by the Company's management. Moreover, management believes that these adjusted measures reflect the essential operating activities of the Company. Adjusted measures are subject to inherent limitations because they do not include all of the expenses included under GAAP and because they involve the exercise of judgment of which charges are excluded from the adjusted financial measure. However, the Company's management compensates for these limitations by providing the relevant disclosure of the items excluded. A reconciliation of each adjusted measures to the nearest GAAP measure appears in the table below.

                        PUDA COAL, INC AND SUBSIDIARIES
             RECONCILIATION OF NON-GAAP NET INCOME AVAILABLE TO COMMON
                         SHAREHOLDERS AND DILUTED EPS

                                                        Three months Ended
                                                             March 31,

    US$ - thousands, except per share                  2010             2009

    Net income                                        5,444            2,116
      - Non-cash adjustment -
        derivative unrealized fair value
        loss/(gain) for warrants issued               1,207               (8)

    Adjusted net income excluding
     non-cash item                                    6,651            2,108

    Per diluted share
      - Net income per share                          $0.31            $0.14
      - Non-cash adjustment per share                 $0.06            $0.00
      - Adjusted net income per share                 $0.37            $0.14
    Weighted average shares
     outstanding - '000
      -diluted                                       18,594           15,379



                                 PUDA COAL, INC.
                UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
              For the three months ended March 31, 2010 and 2009
        (In thousands of United States dollars, except per share data)

                                                 Three months ended March 31,
                                                      2010              2009

    NET REVENUE                                    $61,971           $49,721
    COST OF REVENUE                                 51,697            45,850
    GROSS PROFIT                                    10,274             3,871
    OPERATING EXPENSES
    Selling expenses                                   638               577
    General and administrative
     expenses                                          558               341
    TOTAL OPERATING EXPENSES                         1,196               918
    INCOME FROM OPERATIONS                           9,078             2,953
    INTEREST INCOME                                     22                33
    INTEREST EXPENSE                                  (117)             (137)
    DERIVATIVE UNREALIZED FAIR VALUE
     (LOSS)/ GAIN                                   (1,207)                8
    INCOME BEFORE INCOME TAXES                       7,776             2,857
    INCOME TAXES                                    (2,332)             (741)
    NET INCOME                                       5,444             2,116
    OTHER COMPREHENSIVE INCOME
    Foreign currency translation
     adjustment                                        (86)             (166)
    COMPREHENSIVE INCOME                            $5,358            $1,950
    EARNINGS PER SHARE - BASIC                       $0.31             $0.14

                       - DILUTED                     $0.31             $0.14
    WEIGHTED AVERAGE NUMBER OF
    SHARES
         OUTSTANDING - BASIC                    17,832,199        15,333,680

                     - DILUTED                  18,594,264        15,378,544



                                 PUDA COAL, INC.
                           CONSOLIDATED BALANCE SHEETS
                       March 31, 2010 and December 31, 2009
                      (In thousands of United States dollars)

                                                 March 31,         December 31,
                                                   2010               2009
                                                (Unaudited)
    ASSETS
    CURRENT ASSETS
    Cash and cash equivalents                      $49,393           $19,918
    Accounts receivable, net                        25,835            25,340
    Advances to suppliers
      - Related parties                              1,114             1,020
      - Third parties                                2,294             3,552
    Inventories                                     20,034            22,531
    Total current assets                            98,670            72,361
    PREPAYMENTS                                      6,259             6,259
    PROPERTY, PLANT AND EQUIPMENT, NET              13,566            13,986
    INTANGIBLE ASSETS, NET                           3,923             3,945
    INVESTMENT, AT COST                             14,650            14,650
    TOTAL ASSETS                                  $137,068          $111,201

    CURRENT LIABILITIES
    Current portion of long-term debt
      - Related party                               $1,300            $1,300
    Accounts payable                                 6,310             4,839
    Other payables
      - Related parties                              1,031             1,031
      - Third parties                                2,672             2,650
    Accrued expenses                                   885             1,076
    Income taxes payable                             2,333             1,091
    VAT payable                                      1,306             1,135
    Derivative warrants                              6,822             7,620
    Total current liabilities                       22,659            20,742
    LONG-TERM LIABILITIES
    Long-term debt
      - Related party                                6,175             6,500

    Total long-term liabilities                      6,175             6,500

    COMMITMENTS AND CONTINGENCIES
     STOCKHOLDERS' EQUITY
    Preferred stock, authorized
     5,000,000 shares, par value $0.01,
     issued and outstanding None                        --                --
    Common stock, authorized
     150,000,000 shares, par value
     $0.001, issued and outstanding
     19,638,309  (2009: 15,828,863)                     19                15
    Paid-in capital                                 54,125            35,212
    Statutory surplus reserve fund                   1,366             1,366
    Retained earnings                               42,677            37,233
    Accumulated other comprehensive
     income                                         10,047            10,133
    Total stockholders' equity                     108,234            83,959
    TOTAL LIABILITIES AND
     STOCKHOLDERS' EQUITY                         $137,068          $111,201


    For more information, please contact:

    Company Contact:
     Laby Wu, Chief Financial Officer, Director of Investor Relations
     Puda Coal, Inc.
     Tel:   +86-10-6439-2405
     Email: labywu@gmail.com
     Web:   http://www.pudacoalinc.com

    Investor Relations Contact:
     Crocker Coulson, President
     CCG Investor Relations
     Tel:   +1-646-213-1915
     Email: crocker.coulson@ccgir.com

     Elaine Ketchmere,
     VP of Financial Writing
     Tel:   +1-310-954-1345
     Email: elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

TAIYUAN, China, March 22 /PRNewswire-Asia-FirstCall/ -- Puda Coal, Inc. (NYSE Amex: PUDA), a supplier of high grade metallurgical coking coal used to produce coke for steel manufacturing in China and consolidator in Shanxi Province of eight coal mines in Pinglu County and four coal mines in Huozhou County, today announced that the Company will conduct a conference call to discuss its fourth quarter and full year 2009 financial results on Wednesday, March 24, 2010 at 9:00 a.m. ET.

To participate in the live conference call, please dial (877) 409-5558 (international callers dial (706) 679-8017) approximately five to ten minutes prior to the start of the call and enter passcode 645 854 53.

A replay will be available for 14 days starting on Wednesday, March 24 at 10:00 a.m. ET and can be accessed by dialing (800) 642-1687 (international callers dial (706) 645-9291) and entering passcode 645 854 53.

About Puda Coal, Inc.

Puda Coal, through its subsidiaries, supplies premium grade coking coal to the steel making industry in China for use in making coke. The Company currently possesses 3.5 million metric tons of annual coking coal cleaning capacity. Shanxi Province provides 20-25% of China's coal output and supplies nearly 50% of China's coke. For more information, please visit http://www.pudacoalinc.c... .

Puda Coal expects that the offering will yield net proceeds, after expenses, of $12,569,486, prior to the exercise of the underwriters' 30-day over-allotment option to purchase an additional 428,348 shares of Puda Coal's common stock. Puda Coal expects to use the net proceeds of the offering, together with available cash, to fund the purchase price of the previously-announced acquisition of two coal mines. The offering is expected to close on February 18, 2010, subject to customary closing conditions.

The securities described above are being offered by Puda Coal pursuant to registration statements on Form S-3 previously filed and declared effective by the Securities and Exchange Commission (SEC). The offering may be made only by means of the preliminary prospectus supplement and the related prospectus relating to the proposed offering, copies of which may be obtained, when available, from Brean Murray, Carret & Co., LLC, Attention: Minnie Huang, 570 Lexington Avenue, New York, NY 10022, by telephone at (212) 702-6667, or via email at minnie.huang@bmur.com or from the offices of Newbridge Securities Corporation at 7600 Jericho Turnpike, Suite 202 Woodbury, NY 11797.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offer will be made only by means of a prospectus, including prospectus supplement, forming a part of the effective registration statement.

About Puda Coal Inc.

Puda Coal, through its subsidiaries, supplies premium high grade metallurgical coking coal used to produce coke for steel manufacturing in China. The Company currently possesses 3.5 million metric tons of annual coking coal capacity. The Company has recently moved upstream into coal mining. In May 2009, the Company entered into an equity transfer agreement to acquire 18% of Jianhe Coal. In September 2009, the Shanxi government approved the Company's plan to consolidate eight coal mines in Pinglu County, Shanxi Province. Shanxi Province provides 20 - 25% of China's coal output and supplies nearly 50% of China's coke. For more information, please visit http://www.pudacoalinc.c...

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.

 For more information, please contact:

 Investor Relations Contact:
 Crocker Coulson, President
 CCG Investor Relations
 Tel: +1-646-213-1915
 Email: crocker.coulson@ccgir.com

 Elaine Ketchmere,
 VP of Financial Writing
 Tel: +1-310-954-1345
 Email: elaine.ketchmere@ccgir.com
 Web: http://www.ccgirasia.com

 Company Contact:
 Laby Wu, Chief Financial Officer, Director of Investor Relations
 Puda Coal, Inc.
 Tel: +86-10-6439-2405
 Email: labywu@gmail.com
 Web: http://www.pudacoalinc.com

In December 2009, Puda Coal announced that it entered coal mining rights and mining assets transfer agreements with Pinglu County Da Wa Coal Industry Co., Ltd ("Da Wa Coal") and Pinglu County Guanyao Coal Industry Co., Ltd. ("Guanyao Coal"). The loan proceeds, if drawn down by the Company, will fund capital expenditures to expand the capacities of Da Wa Coal and Guanyao Coal.

Among other stipulations, the loan is subject to the satisfaction of the conditions contained in the Underwriting Agreement between Puda Coal and Brean Murray, Carret & Company, LLC ("Brean Murray) dated February 11, 2010. Brean Murray will act as lead manager and sole bookrunner in connection with the common stock offering announced today. Puda Coal expects to use the net proceeds of the offering, together with available cash, to fund the purchase price of the previously-announced acquisitions of Da Wa Coal and Guanyao Coal. The securities described above are being offered by Puda Coal pursuant to a registration statement on Form S-3 previously filed and declared effective by the Securities and Exchange Commission (SEC).

"We appreciate Mr. Zhao's confidence in our long-term business strategy by loaning the Company the necessary funds to expand the mining capacities of Da Wa Coal and Guanyao Coal," commented Mr. Liping Zhu, President & CEO of Puda Coal.

"The funds raised through our common stock offering combined with these loan proceeds will enable us to transform Puda Coal from a coal washing business into an integrated coal mining business," commented Mr. Zhao. "We look forward to completing additional coal mine consolidations in the near future."

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offer will be made only by means of a prospectus, including prospectus supplement, forming a part of the effective registration statement.

About Puda Coal Inc.

Puda Coal, through its subsidiaries, supplies premium high grade metallurgical coking coal used to produce coke for steel manufacturing in China. The Company currently possesses 3.5 million metric tons of annual coking coal capacity. The Company has recently moved upstream into coal mining. In May 2009, the Company entered into an equity transfer agreement to acquire 18% of Jianhe Coal. In September 2009, the Shanxi government approved the Company's plan to consolidate eight coal mines in Pinglu County, Shanxi Province. In December 2009, Puda Coal entered into two coal mining companies to acquire assets and mining rights with respect to two coal mines. For more information, please visit http://www.pudacoalinc.c... .

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. For example, the closing of the loan transaction is subject to definitive loan agreement and other terms and conditions, including the closing of the public offering under the underwriting agreement, which is subject to market condition and uncertainties beyond our control, and our successful transformation from coal cashing to integrated coal washing and coal mining business is subject to, among other things, our management's ability and capacity to execute our coal mine acquisition strategy and manage the coal mine operations. 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.

 For more information, please contact:

 Investor Relations Contact:
 Crocker Coulson, President
 CCG Investor Relations
 Tel: +1-646-213-1915
 Email: crocker.coulson@ccgir.com

 Elaine Ketchmere, VP of Financial Writing
 Tel: +1-310-954-1345
 Email: elaine.ketchmere@ccgir.com

 Web: http://www.ccgirasia.com

 Company Contact:
 Laby Wu, Chief Financial Officer, Director of Investor Relations
 Puda Coal, Inc.
 Tel: +86-10-6439-2405
 Email: labywu@gmail.com
 Web: http://www.pudacoalinc.com

The securities described above are being offered by Puda Coal pursuant to a registration statement on Form S-3 previously filed and declared effective by the Securities and Exchange Commission (SEC). The offering may be made only by means of the preliminary prospectus supplement and the related prospectus relating to the proposed offering, copies of which may be obtained, when available, from Brean Murray, Carret & Co., LLC, Attention: Minnie Huang, 570 Lexington Avenue, New York, NY 10022, by telephone at (212) 702-6667, or via email at minnie.huang@bmur.com or from the offices of Newbridge Securities Corporation at 7600 Jericho Turnpike, Suite 202 Woodbury, NY 11797.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offer will be made only by means of a prospectus, including prospectus supplement, forming a part of the effective registration statement.

About Puda Coal Inc.

Puda Coal, through its subsidiaries, supplies premium high grade metallurgical coking coal used to produce coke for steel manufacturing in China. The Company currently possesses 3.5 million metric tons of annual coking coal capacity. The Company has recently moved upstream into coal mining. In May 2009, the Company entered into an equity transfer agreement to acquire 18% of Jianhe Coal. In September 2009, the Shanxi government approved the Company's plan to consolidate eight coal mines in Pinglu County, Shanxi Province. In December 2009, Puda Coal entered into two coal mining companies to acquire assets and mining rights with respect to two coal mines. For more information, please visit www.pudacoalinc.com

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. For example, our ability to complete the public offering or to complete it under terms and conditions that are favorable to us is subject to market conditions and uncertainties which are beyond our control. 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.

 For more information, please contact:

 Investor Relations Contact:
 Crocker Coulson, President
 CCG Investor Relations
 Tel: +1-646-213-1915
 Email: crocker.coulson@ccgir.com

 Elaine Ketchmere, VP of Financial Writing
 Tel: +1-310-954-1345
 Email: elaine.ketchmere@ccgir.com

 Web: http://www.ccgirasia.com

 Company Contact:
 Laby Wu, Chief Financial Officer, Director of Investor Relations
 Puda Coal, Inc.
 Tel: +86-10-6439-2405
 Email: labywu@gmail.com
 Web: http://www.pudacoalinc.com

Under the agreements, the total transfer price of the purchased assets of Da Wa Coal is RMB 190 million ($27.8 million), of which RMB 46.6 million ($6.8 million) is for Da Wa's tangible assets and RMB 143.3 million ($21.0 million) is for the mining rights and compensation to the previous owner. For Guanyao Coal, the purchase price totaled RMB 94.8 million ($13.9 million), of which RMB 37.6 million ($5.5 million) is for Guanyao's tangible assets and RMB 57.2 million ($8.4 million) is for the mining rights and compensation to the previous owner.

All the purchased assets will be placed into two newly established companies, of which Puda Coal will own 100%. The names of the two new companies have been approved by the provincial government in its notice dated September 28, 2009 approving Puda Coal to be a coal mine consolidator of eight coal mines in Pinglu County.

The agreements provide that Puda Coal pay 15% of the purchase price within three days after signing the business transfer agreements, which occurred on December 15, 2009, and 65% of the purchase price within 15 days after transferring the registrations and ownership certificates of mining rights, land and property deeds. At that point, Puda Coal will apply for new business licenses and operating approvals from the local government for the new companies. Once the approvals are received, Puda Coal will commence operations of the mines. Puda Coal will pay the remaining 20% of the purchase price of the mines, upon the one-year anniversary of the completion of ownership transfers.

Pursuant to the agreements, Da Wa Coal and Guanyao Coal will be responsible for canceling or terminating employment contracts (or employment relationships) with their staff, paying all unpaid wage, premium and welfare expenses, and bearing all the expenses caused by the cancellation or termination of the employment contracts.

Upon closing of the transactions under the agreements, Puda Coal plans to expand the two coal mines from current annual capacities of 300,000 metric tons and 150,000 metric tons to 600,000 metric tons and 300,000 metric tons, respectively. The Company expects to complete the restructuring projects within six to twelve months, without disrupting existing capacity and operations of the coal mines.

Both Da Wa Coal and Guanyao Coal have reserves of high quality thermal coal. On December 14, 2009, the average pre-tax tonnage sales price of average quality thermal coal in Shanxi Province was approximately RMB 400 per ton ($59).

"We expect the new coal mines to be accretive to our earnings in 2010," commented Mr. Zhu Liping, President and CEO of Puda Coal Inc. "We closely follow publicly-traded, large companies operating in the coal mining business in Shanxi Province, of which three are listed on the Hong Kong Stock Exchange and three are listed on the Shanghai Stock Exchange. On average, these companies generated operating margin of approximately 40% for their coal mining operating segments during the first six months of 2009. According to our consolidation plan, we look forward to acquiring an additional six coal mines and consolidating them into three."

About Puda Coal Inc.

Puda Coal, through its subsidiaries, supplies premium high grade metallurgical coking coal used to produce coke for steel manufacturing in China. The Company currently possesses 3.5 million metric tons of annual coking coal capacity. On September 28, 2009, the Shanxi provincial government appointed a subsidiary of Puda Coal, Shanxi Puda Coal Group Co., Ltd. as a consolidator of eight coal mines in Yucheng City, Pinglu County. On December 4, 2009 Puda Coal closed its 18% equity purchase of Shanxi Jianhe Coal Industry Limited Company, a coking coal mine in Shanxi Province. For more information, please visit http://www.pudacoalinc.c... .

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. For example, the closing of the transactions under the acquisition agreements are subject to various closing conditions, including government registration, and there is no certainty as to whether the transactions will close and whether they will close on time. Further, our plan to increase the production capacity of the acquired coal mines is subject to, among other things, the risks and uncertainties relating to the market and geological condition, which are beyond our control, and our ability to operate and manage the newly acquired coal mines. which is not a sector our company has been operating in. 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.

    For more information, please contact:

    Company Contact:
     Laby Wu, Chief Financial Officer, Director of Investor Relations
     Puda Coal, Inc.
     Phone: +86-10-6439-2405
     Email: labywu@gmail.com
     Web:   http://www.pudacoalinc.com

    Investor Relations Contact:
     Crocker Coulson, President
     CCG Investor Relations
     Phone: +1-646-213-1915
     Email: crocker.coulson@ccgir.com

     Elaine Ketchmere, VP of Financial Writing
     Phone: +1-310-954-1345
     Email: elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

In May 2009, the Company entered into an equity transfer agreement ("the Agreement") to acquire 18% of Jianhe Coal. Pursuant to the Agreement, the stockholder owning the other 82% of Jianhe Coal guaranteed the Company first priority rights to purchase the remaining shares of Jianhe Coal within the 24-month period following execution of the Agreement. The Company will be paid proportionate semi-annual dividends based on its 18% ownership. Total dividends for Jianhe Coal will be no less than 80% of its annual net profit.

"Leveraging our status as a consolidator of eight coal mines in Pinglu County, we are applying to be a consolidator in the coal reserve area where Jianhe Coal is located," commented Mr. Zhu Liping, Chairman and CEO of Puda Coal. "We are confident that our strategic transition upstream into the coal mining business will increase our profitability and maximize our shareholder value."

About Puda Coal Inc.

Puda Coal, through its subsidiaries, supplies premium high grade metallurgical coking coal used to produce coke for steel manufacturing in China. The Company currently possesses 3.5 million metric tons of annual coking coal capacity. Shanxi Province provides 20 - 25% of China's coal output and supplies nearly 50% of China's coke. For more information, please visit http://www.pudacoalinc.c...

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. For example, our plan to acquire and consolidate more coal mines is subject to, among other things, the risks and uncertainties relating to the market and geological condition, due diligence, negotiation for definitive agreements, etc. which are beyond our control, as well as our management's ability and capacity to execute our coal mine acquisition strategy and manage the coal mine operations. 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.

    For more information, please contact:

    Company Contact:
     Laby Wu, Chief Financial Officer, Director of Investor Relations
     Puda Coal, Inc.
     Phone: +86-10-6439-2405
     Email: labywu@gmail.com
     Web:   http://www.pudacoalinc.c...

    Investor Relations Contact:
     Crocker Coulson, President
     CCG Investor Relations
     Phone: +1-646-213-1915
     Email: crocker.coulson@ccgir.com

     Elaine Ketchmere, VP of Financial Writing
     Phone: +1-310-954-1345
     Email: elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

To participate in the live conference call, please dial 888-419-5570 (international callers dial 617-896-9871) approximately five to ten minutes prior to the start of the call and enter passcode 459 487 02.

A replay will be available for 14 days starting on Friday, November 13 at 11:00 a.m. EST and can be accessed by dialing 888-286-8010 (international callers 617-801-6888) and entering passcode 699 50 901.

About Puda Coal, Inc.

Puda Coal, through its subsidiaries, supplies premium grade coking coal to the steel making industry in China for use in making coke. The Company currently possesses 3.5 million metric tons of annual coking coal cleaning capacity. Shanxi Province provides 20-25% of China's coal output and supplies nearly 50% of China's coke. For more information, please visit http://www.pudacoalinc.c... .

    For more information, please contact:

    Investor Relations Contact:
     Crocker Coulson, President
     CCG Investor Relations
     Tel:   +1-646-213-1915
     Email: crocker.coulson@ccgir.com

     Elaine Ketchmere, VP of Financial Writing
     Tel:   +1-310-954-1345
     Email: elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

    Company Contact:
     Laby Wu, Chief Financial Officer, Director of Investor Relations
     Puda Coal, Inc.
     Tel:   +86-10-6439-2405
     Email: labywu@gmail.com
     Web:   http://www.pudacoalinc.c...

    The date, time and location of Puda Coal's presentations are as follows:

    The Oppenheimer 4th Annual Industrials Conference
    Date:       Wednesday, November 18th, 2009
    Time:       11:45am-12:25pm EST
    Presenter:  Laby Wu, Chief Financial Officer
    Venue:      The Millennium Broadway Hotel, New York, NY

The Oppenheimer 4th Annual Industrials Conference will be held November 17-18, 2009 at the Millennium Broadway Hotel in New York, New York and will feature over 80 leading public and private companies. This two-day conference will showcase a diverse mix of leading large- and mid-cap industrial, chemicals, shipping and aerospace/defense companies, as well as a number of high-growth small-cap and privately-held firms. The event will provide a broad perspective across a variety of end markets in the industrial universe, as 2010 approaches. The format will allow investors to meet with senior executives of the presenting companies in 1x1 meetings.

The Brean Murray, Carret & Co. 2009 China Growth Conference Date: Friday, November 20th, 2009 Time: 1:40pm-2.15pm EST Presenter: Laby Wu, Chief Financial Officer Venue: The Millennium Broadway Hotel, New York, NY

The Brean Murray, Carret & Co. 2009 China Growth Conference is a two-day conference November 19-20, 2009 that consists of 25-minute presentations each followed by a 10-minute open floor Q&A session. Senior management of presenting companies, industry experts, and institutional investors will receive a unique and comprehensive view of China from a global perspective. Puda Coal will be available for 1x1 meetings on both days of the conference.

Non-Deal Road Show

Laby Wu, Chief Financial Officer, will meet with institutional investors in Chicago, Milwaukee, New York, and the Mid-Atlantic Region in mid-November. Interested parties are advised to contact Roger Ellis, of CCG Investor Relations, at (310) 954-1332 or roger.ellis@ccgir.com.

About Puda Coal, Inc.

Puda Coal, through its subsidiaries, supplies premium grade coking coal to the steel making industry in China for use in making coke. The Company currently possesses 3.5 million metric tons of annual coking coal cleaning capacity. Shanxi Province provides 20 - 25% of China's coal output and supplies nearly 50% of China's coke. For more information, please visit http://www.pudacoalinc.c... .

For more information, please contact: Investor Relations Contact: Crocker Coulson, President CCG Investor Relations Tel: +1-646-213-1915 Email: crocker.coulson@ccgir.com Elaine Ketchmere, VP of Financial Writing Tel: +1-310-954-1345 Email: elaine.ketchmere@ccgir.com Web: http://www.ccgirasia.com Company Contact: Laby Wu, Chief Financial Officer, Director of Investor Relations Puda Coal, Inc. Tel: +86-10-6439-2405 Email: labywu@gmail.com Web: http://www.pudacoalinc.c...

TAIYUAN, China, Sep. 30, 2009 (PRNewswire-Asia-FirstCall) -- Puda Coal, Inc. (NYSE Amex: PUDA) ("Puda Coal" or the "Company"), a supplier of China's high grade metallurgical coking coal used to make coke for the purposes of steel manufacturing, today announced that its subsidiary Shanxi Puda Coal Group Co., Ltd. ("Shanxi Coal") received final approval from the provincial government to consolidate eight coal mines in Shanxi Province.

On September 28, 2009, the Shanxi provincial government appointed Shanxi Coal as consolidator for eight coal mines in Yucheng City, Pinglu County. In February 2009, Shanxi Coal signed a letter of intent with Pinglu County to consolidate and restructure a coal mine area encompassing six coal mines. The municipal government approved the application and delivered it to the Shanxi provincial government for final review. The government of Shanxi Province reviewed the application and approved Shanxi Coal to consolidate an area encompassing eight coal mines. Shanxi Coal will consolidate the eight coal mines into five, increasing their total annual capacity from approximately 1.6 million to 3.6 million metric tons. The approval from the Shanxi provincial government was the last step required to move forward with the development and consolidation of the mines.

The Company has already commenced the technical geological prospecting process for the targeted coal reserves. In the near future, the Company will perform a comprehensive financial analysis of the project and then determine the most efficient plan to develop and construct the targeted consolidated coal mines.

"We are honored that the Shanxi provincial government granted Shanxi Coal this strategic opportunity to be one of the limited number of consolidators of coal mines in Shanxi Province," said Mr. Liping Zhu, President and CEO of Puda Coal. "This project will enable us to develop our coal mining business, move upstream in the coal industry, and continue our efforts to maximize shareholder value."

About Puda Coal, Inc.

Puda Coal, through its subsidiaries, supplies premium grade coking coal to the steel making industry in China for use in making coke. The Company currently possesses 3.5 million metric tons of annual coking coal cleaning capacity. Shanxi Province provides 20 - 25% of China's coal output and supplies nearly 50% of China's coke. For more information, please visit http://www.pudacoalinc.com/

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 as well as local and global economic and financial conditions. For example, our management's ability to successfully consolidate and increase output at the mines is subject to, among other things, the risks and uncertainties relating to the market conditions beyond our control. We will not, and 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.

    Company Contact:
Laby Wu, Chief Financial Officer;
Director of Investor Relations
Puda Coal, Inc.
+86-10-6439-2405
labywu@gmail.com
www.pudacoalinc.com

Crocker Coulson, President
CCG Investor Relations
+1-646-213-1915
crocker.coulson@ccgir.com
www.ccgirasia.com

Elaine Ketchmere, Partner;
VP Financial Writing
CCG Investor Relations
+1-310-954-1345
elaine.ketchmere@ccgir.com
www.ccgirasia.com

SOURCE Puda Coal, Inc.

Source: PR Newswire (September 30, 2009 - 2:16 PM EDT)

    Second Quarter 2009 Highlights

    -- Second quarter revenue was $48.0 million, down 9.8% from the second
       quarter of 2008
    -- Operating income totaled $2.7 million, down 48.9% from the second
       quarter of 2008
    -- Net income was $1.7 million, or $0.11 per fully diluted share
    -- Sales of cleaned coal totaled 440,000 metric tons (MT), down 25.7% from
       592,000 a year ago and down 3.5% from 456,000 MT in the first quarter
       of 2009
    -- Average selling price of cleaned coal rose 18.5% year-over-year to $109
       per MT (after adjusting for exchange rate differences) and was
       unchanged from the first quarter of 2009
    -- Puda Coal announced plans to acquire 18% interest in Jianhe Coal, a
       coal mine in Shanxi Province
    -- Puda Coal reincorporated to Delaware, completed seven-to-one share
       conversion, and changed stock symbol to PUDZ

"We experienced lower demand during the second quarter of 2009, as the steel industry worked through existing inventories and delayed placing new orders for coking coal," said Mr. Liping Zhu, President and CEO of Puda Coal. "Even under these difficult market conditions, we remained profitable, generated positive operating cash flow, and made progress in our efforts to acquire coal mines."

Second Quarter Results

For the second quarter ended June 30, 2009, total revenue was $48.0 million, down 9.8% from $53.2 million in the second quarter of 2008. The tonnage sales of cleaned coal declined approximately 152,000 MT from 592,000 MT for the second quarter of 2008 to 440,000 MT for the three months ended June 30, 2009. The decrease in tonnage sales was partially offset by an increase in selling price. The average selling price was approximately $109 (after adjusting for exchange rate differences), an increase of 18% compared to $92 for the same quarter of 2008.

Gross profit for the quarter was $3.6 million, down from $6.7 million for the same period of 2008. Gross margin was 7.5% during the quarter, down from 12.6% during the same period last year. The decrease in gross profit margin was primarily due to higher labor cost and manufacturing overhead due to increases in power, water and materials in the three months ended June 30, 2009.

Operating expenses for the second quarter of 2009 were $0.9 million, down 36.9% from $1.5 million in the same period last year. Selling expenses declined 37.9% to $0.5 million, in-line with the decrease in tonnage sales of cleaned coal in the three months ended June 30, 2009. General and administrative expenses declined 35.5% to $0.4 million, primarily due to a decrease in professional and employee-related expenses. As a percentage of net revenue, operating expenses were 2.0% in the second quarter of 2009, compared to 2.8% in the same quarter last year.

Operating income was $2.7 million, or 5.6% of revenue in the second quarter of 2009, down 48.9% from $5.2 million, or 9.8% of net revenue in the second quarter of 2008.

Interest expense cost totaled $0.1 million in the second quarter of 2009, down from $0.2 million in the year ago period. This decrease was due to a decrease in interest payments of the 8% convertible notes which matured on October 31, 2008.

During the second quarter of 2009, the Company recorded a non-cash expense of $0.1 million for a loss in fair value of the warrants issued in the November 2005 private placement. This remains relatively unchanged compared to the fair value loss recorded in the same period last year.

Income tax expense declined to $0.7 million in the second quarter of 2009 from $1.2 million in the year ago period. The decrease was primarily due to a decline in income of Shanxi Coal from $4.7 million in the second quarter of 2008 to $2.8 million in the same period 2009.

Net income was $1.7 million, or $0.11 per diluted share, compared to net income of $2.9 million, or $0.19 per diluted share, in the second quarter of 2008. Diluted earnings per share was calculated using weighted average shares of 15,370,319 and 15,649,437 for the quarters ended June 30, 2009 and 2008, respectively, as adjusted for a seven-to-one share conversion.

Six Months Results

Net revenue was $97.7 million in the first half of 2009, down 5.9% from $103.8 million in the first half of 2008. Gross profit was $7.5 million, or 7.6% of revenue, down 47.2% from $14.2 million, or 13.6% of revenue, in the first half of 2008. Operating income was $5.6 million, or 5.7% of revenue, down 50.9% from $11.4 million, or 11.0% of revenue, in the first half of 2008. Net income was $3.8 million, or $0.25 per diluted share, compared with net income of $7.2 million, or $0.48 per diluted share, in the first half of 2008. Diluted earnings per share was calculated using weighted average shares of 15,360,625 and 15,649,437 for the six months ended June 30, 2009 and 2008, respectively, as adjusted for a seven-to-one share conversion.

Financial Condition

As of June 30, 2009, Puda Coal had $16.9 million in cash and cash equivalents and $71.5 million in working capital and a current ratio of 6.4:1. Long-term debt, excluding current portion, was $7.2 million and shareholders' equity totaled $76.0 million compared to $72.2 million at the end of 2008.

Net operating cash outflow was $12.7 million in the first half of 2009, compared to operating cash flow of $10.2 million in the first half of 2008. This was primarily due to an increase in working capital needs resulting from increased accounts receivable and inventory and the decline in net income. As of June 30, 2009, the Company has prepaid approximately $8.8 million of the $14.6 million purchase price for its 18% equity interest in Jianhe Coal.

Business Outlook

"In response to record high steel prices driven by the demand in the infrastructure construction sector in China, the steel industry has begun increasing production levels. The modest increase in orders we experienced in June did not contribute much to our second quarter operating results. However we anticipate that tonnage sales in the third quarter will continue to improve from current levels as steel inventories decline and our customers increase order volumes," said Mr. Zhu.

"We continue our efforts to enter the coal mining industry as a key part of our strategy to increase our long-term profitability. We are working closely with the provincial government to obtain final approval to execute the restructuring and consolidation of the coal mines in Pinglu County, and are in the final stages of closing the acquisition of an 18% interest in the Jianhe coal mine," concluded Mr. Zhu.

Recent Event

On August 6, 2009, Puda Coal announced that its seven-to-one share conversion became effective on July 30, 2009 and that its stock symbol changed to PUDZ from PUDC on August 6, 2009. In addition, on August 6, 2009, Puda Coal announced that its reincorporation to Delaware, from Florida, became effective on July 30, 2009.

Upcoming Event

Puda Coal, Inc. will present at the Rodman & Renshaw Annual Global Investment Conference to be held on September 9-11, 2009 at the New York Palace Hotel in New York. During the conference, Puda Coal's management will be available for one-on-one meetings.

Conference Call

The Company will host a conference call at 9:30 a.m. ET on Thursday, August 13, 2009 to discuss results for the second quarter of 2009. To participate in the live conference call, please dial (866) 730-5762 five to ten minutes prior to the scheduled conference call time. International callers should dial (857) 350-1586. When prompted by the operator, mention conference passcode 282 760 80. If you are unable to participate in the call at this time, a replay will be available for 14 days starting on Thursday, August 13 at 11:30 a.m. ET. To access the replay, please dial (888) 286-8010. International callers should dial (617) 801-6888. When prompted, enter the conference passcode 705 309 98

About Puda Coal, Inc.

Puda Coal, through its subsidiaries, supplies premium grade coking coal to the steel making industry in China for use in making coke. The Company currently possesses 3.5 million metric tons of annual coking coal cleaning capacity. Shanxi Province provides 20 - 25% of China's coal output and supplies nearly 50% of China's coke. For more information, please visit http://www.pudacoalinc.c...

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. For example, our management's expectation about tonnage sales as a result of anticipated increase in customer orders and our plan to acquire coal mines are subject to, among other things, the risks and uncertainties relating to the market condition and government approvals, which are beyond our control. 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.

                        - FINANCIAL TABLES FOLLOW-



                               PUDA COAL, INC.

               UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
           For the three and six months ended June 30, 2009 and 2008
        (In thousands of United States dollars, except per share data)

                                    Three      Three     Six months Six months
                                    months     months       ended      ended
                                    ended      ended       June 30,   June 30,
                                   June 30,   June 30,      2009        2008
                                     2009       2008

    NET REVENUE                    $47,990     $53,188      97,711    $103,786

    COST OF REVENUE                 44,388      46,491      90,238      89,636

    GROSS PROFIT                     3,602       6,697       7,473      14,150

    OPERATING EXPENSES
    Selling expenses                   533         858       1,110       1,612
    General and administrative
     expenses                          404         626         745       1,103

    TOTAL OPERATING EXPENSES           937       1,484       1,855       2,715

    INCOME FROM OPERATIONS           2,665       5,213       5,618      11,435

    INTEREST INCOME                     23          26          56          53

    INTEREST EXPENSE                  (132)       (196)       (269)       (397)

    DEBT FINANCING COSTS                --        (109)         --        (622)

    DERIVATIVE UNREALIZED FAIR
     VALUE (LOSS)/GAIN                (121)       (144)       (113)        220

    OTHER EXPENSE                       --        (719)         --        (719)

    INCOME BEFORE INCOME TAXES       2,435       4,071       5,292       9,970

    INCOME TAXES                      (706)     (1,208)     (1,447)     (2,812)

    NET INCOME                       1,729       2,863       3,845       7,158

    OTHER COMPREHENSIVE INCOME
    Foreign currency translation
     adjustment                        (30)      1,285        (196)      3,460

    COMPREHENSIVE INCOME            $1,699      $4,148      $3,649     $10,618

    EARNINGS PER SHARE
          - BASIC                    $0.11       $0.19       $0.25       $0.48
          - DILUTED                  $0.11       $0.19       $0.25       $0.48

    WEIGHTED AVERAGE NUMBER
     OF SHARES OUTSTANDING
          - BASIC               15,353,176  15,036,026  15,343,482  15,036,026
          - DILUTED             15,370,319  15,649,437  15,360,625  15,649,437



                                  PUDA COAL, INC.

                            CONSOLIDATED BALANCE SHEETS
                        June 30, 2009 and December 31, 2008
                      (In thousands of United States dollars)

                                           June 30, 2009    December 31, 2008
                                             (Unaudited)
    ASSETS
    CURRENT ASSETS
    Cash and cash equivalents                   $16,852           $39,108
    Accounts receivable, net                     28,212            14,645
    Other receivables                                --                 7
    Advances to suppliers
      - Related parties                             849               879
      - Third parties                             3,094             5,635
    Prepayment                                    8,785                --
    Inventories                                  26,875            21,589

    Total current assets                         84,667            81,863

    PROPERTY, PLANT AND EQUIPMENT, NET           12,531            13,370

    INTANGIBLE ASSETS, NET                        3,355             3,399

    TOTAL ASSETS                               $100,553           $98,632

    LIABILITIES AND STOCKHOLDERS' EQUITY
    CURRENT LIABILITIES
    Current portion of long-term debt
      - Related party                            $1,300            $1,300
    Accounts payable                              5,644             4,272
    Other payables
      - Related parties                           1,030             1,030
      - Third parties                             2,397             2,714
    Accrued expenses                              1,787             1,991
    Income taxes payable                            705             1,319
    VAT payable                                     212             1,726
    Distribution payable
      - Related party                               117               117

    Total current liabilities                    13,192            14,469

    LONG-TERM LIABILITIES
    Long-term debt
      - Related party                             7,150             7,800
    Derivative warrants                           4,199             4,086

    Total long-term liabilities                  11,349            11,886

    COMMITMENTS AND CONTINGENCIES

    STOCKHOLDERS' EQUITY
    Preferred stock, authorized 5,000,000
     shares, par value $0.01, issued
     and outstanding None                            --                --
    Common stock, authorized 150,000,000
     shares, par value $0.001,
     issued and outstanding
     15,361,401 (2008: 15,333,680)                   15                15
    Paid-in capital                              31,733            31,647
    Statutory surplus reserve fund                1,366             1,366
    Retained earnings                            35,597            31,752
    Accumulated other comprehensive income        7,301             7,497

    Total stockholders' equity                   76,012            72,277

    TOTAL LIABILITIES AND STOCKHOLDERS'
     EQUITY                                    $100,553           $98,632



                                PUDA COAL, INC.
                UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
                For the six months ended June 30, 2009 and 2008
                    (In thousands of United States dollars)

                                                      Six months ended June 30,
                                                          2009         2008
    CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income                                           $3,845       $7,158
    Adjustments to reconcile net income to net
     cash provided by operating activities
    Amortization of land-use rights                          44           42
    Depreciation                                            839          813
    Allowance for doubtful debts                             41            1
    Amortization of discount on convertible notes
     and warrants                                            --          243
    Derivative unrealized fair value loss/(gain)            113         (220)
    Stock compensation                                       33           26
    Issue of common stock/warrants to directors              86           --
    Changes in operating assets and liabilities:
      Increase in accounts receivable                   (13,620)        (280)
      Decrease in other receivables                           7            8
      Decrease/(increase) in advances to suppliers        2,563      (11,030)
      (Increase)/decrease in inventories                 (5,309)      12,733
      Increase in accounts payable                        1,377        1,044
      (Decrease)/increase in accrued expenses              (235)         144
      Decrease in other payables                           (313)         (75)
      Decrease in income tax payable                       (612)      (1,110)
      (Decrease)/increase in VAT payable                 (1,511)         326
      Increase in penalty payable                            --          379

    Net cash (used in)/provided by operating
     activities                                         (12,652)      10,202

    CASH FLOWS FROM INVESTING ACTIVITIES:
    Prepayment for equity purchase of coal mine          (8,781)          --

    Net cash used in investing activities                (8,781)          --

    CASH FLOWS FROM FINANCING ACTIVITIES:
    Repayment of long-term debt                            (650)        (650)

    Net cash used in financing activities                  (650)        (650)

    Effect of exchange rate changes on cash                (173)       1,265

    Net (decease)/increase in cash and cash
     equivalents                                        (22,256)      10,817
    Cash and cash equivalents at beginning of
     period                                              39,108       16,381

    Cash and cash equivalents at end of period          $16,852      $27,198

    Supplementary cash flow information
    Cash paid during the period for:
         Interest                                          $269         $397
         Income taxes                                    $2,058       $3,929


    For more information, please contact:

    Company Contact:
     Laby Wu, Chief Financial Officer
     Director of Investor Relations
     Puda Coal, Inc.
     Tel:   +86-10-6439-2405
     Email: labywu@gmail.com
     Web:   http://www.pudacoalinc.c...

    Investor Relations Contact:
     Crocker Coulson, President
     CCG Investor Relations
     Tel:   +1-646-213-1915
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

     Elaine Ketchmere, Partner
     VP Financial Writing
     CCG Investor Relations
     Tel:   +1-310-954-1345
     Email: elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

To participate in the live conference call, please dial 866-730-5762 (international callers dial 857-350-1586) approximately five to ten minutes prior to the start of the call and enter passcode 282 760 80.

A replay will be available for 14 days starting on Thursday, August 13 at 11:30 a.m. Eastern Time and can be accessed by dialing 888-286-8010 (international callers 617-801-6888) and entering passcode 705 309 98.

About Puda Coal, Inc.

Puda Coal, through its subsidiaries, supplies premium grade coking coal to the steel making industry in China for use in making coke. The Company currently possesses 3.5 million metric tons of annual coking coal cleaning capacity. Shanxi Province provides 20-25% of China's coal output and supplies nearly 50% of China's coke. For more information, please visit http://www.pudacoalinc.c... .

    For more information, please contact:

    Investor Relations Contact:
     CCG Investor Relations
     Crocker Coulson, President
     Tel:   +1-646-213-1915
     Email: crocker.coulson@ccgir.com

     Elaine Ketchmere
     VP Financial Writing
     Tel:   +1-310-954-1345
     Email: elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

    Company Contact:
     Laby Wu, Chief Financial Officer;
     Director of Investor Relations
     Puda Coal, Inc.
     Tel:   +86-10-6439-2405
     Email: labywu@gmail.com
     Web:   http://www.pudacoalinc.c...

Following the effect of the reincorporation, Puda Coal is deemed for all purposes of the laws of Delaware and Florida to be the same entity as prior to the reincorporation. Each issued and outstanding share of common stock, par value $0.001 per share, of the Florida-incorporated Company was automatically converted into 0.142857 issued and outstanding share of common stock, par value $0.001 per share, of the Delaware-incorporated Company. No fractional shares were issued in connection with the conversion; instead, Puda Coal rounded up the fractional share to the nearest whole number. As a result of the 7-to-1 stock conversion, the Company has approximately 15,361,401 shares issued and outstanding. In addition, Puda Coal changed its stock symbol to "PUDZ" from "PUDC".

"The reincorporation to Delaware and the stock conversion are strategic steps in achieving our goal to list our stock on a senior stock exchange in the near future and will also reduce our legal costs over the longer term," said Mr. Liping Zhu, President and CEO of Puda Coal, Inc.

About Puda Coal, Inc.

Puda Coal, through its subsidiaries, supplies premium grade coking coal to the steel making industry in China for use in making coke. The Company currently possesses 3.5 million metric tons of annual coking coal cleaning capacity. Shanxi Province provides 20 - 25% of China's coal output and supplies nearly 50% of China's coke. For more information, please visit http://www.pudacoalinc.c...

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. For example, it is uncertain whether our goal to list our shares on a senior stock exchange will be achieved and when it will be achieved. 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.

    For more information, please contact:

    Investor Relations Contact:
     Crocker Coulson, President
     CCG Investor Relations
     Tel:   +1-646-213-1915
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

     Elaine Ketchmere, Partner;
     VP Financial Writing
     CCG Investor Relations
     Tel:   +1-310-954-1345
     Email: elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

    Company Contact:
     Laby Wu, Chief Financial Officer;
     Director of Investor Relations
     Puda Coal, Inc.
     Tel:   +86-10-6439-2405
     Email: labywu@gmail.com
     Web:   http://www.pudacoalinc.c...

On July 1, 2009, the requisite majority of shareholders of Puda Coal approved a Plan of Conversion in written consent whereby Puda Coal will reincorporate from the State of Florida to the State of Delaware on or about July 31, 2009. Pursuant to the Plan of Conversion, each issued and outstanding share of common stock, par value $0.001 per share, of the Florida-incorporated Company will automatically convert into 0.142857 issued and outstanding share of common stock, par value $0.001 per share, of the Delaware-incorporated Company. No fractional shares will be issued in connection with the conversion; instead, Puda Coal will round up the fractional share to the nearest whole number. Because of the round-up treatment, no smaller shareholders will be "freezed out" as a result of the 7-to-1 conversion. For more information about the Plan of Conversion, please see the Form 8-K filed with the US Securities and Exchange Commission on July 7, 2009.

In connection with the reincorporation, the Company will be governed by the corporate laws of Delaware. The reincorporation will neither change the trading status of Puda Coal's common stock nor modify any of the Company's material contracts with any third parties.

"The reincorporation to Delaware and the reverse stock split represent strategic steps in our near-term goal to list our stock on a senior stock exchange and reduce our legal costs in the long term," said Mr. Liping Zhu, President and CEO of Puda Coal, Inc. "We strongly believe these actions are in the best interests of the Company and its shareholders. We look forward to communicating additional details concerning our pursuit of a stock exchange upgrade."

About Puda Coal, Inc.

Puda Coal, through its subsidiaries, supplies premium grade coking coal to the steel making industry in China for use in making coke. The Company currently possesses 3.5 million metric tons of annual coking coal cleaning capacity. Shanxi Province provides 20-25% of China's coal output and supplies nearly 50% of China's coke. For more information, please visit http://www.pudacoalinc.c... .

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. For example, it is uncertain whether our goal to list our shares on a senior stock exchange will be achieved and when it will be achieved. 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.

    For more information, please contact:

    Company Contact:
     Laby Wu, Chief Financial Officer;
     Director of Investor Relations
     Puda Coal, Inc.
     Tel:   +86-10-6439-2405
     Email: labywu@gmail.com
     Web:   http://www.pudacoalinc.c...

    Investor Relations Contact:
     Crocker Coulson, President
     CCG Investor Relations
     Tel:   +1-646-213-1915
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

     Elaine Ketchmere, Partner;
     VP Financial Writing
     CCG Investor Relations
     Tel:   +1-310-954-1345
     Email: elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

Puda Coal Acquires 18% Interest of a Coal Mine in Shanxi Province

TAIYUAN, Shanxi, China, May 15 /PRNewswire-Asia-FirstCall/ -- Puda Coal, Inc. (OTC Bulletin Board: PUDC) ('Puda Coal'), a supplier of China's high grade metallurgical coking coal used to make coke for the purposes of steel manufacturing, today announced that on May 15, 2009, Shanxi Puda Coal Group Co. Ltd, its subsidiary in the People's Republic of China ('Shanxi Coal'), entered into a definitive Agreement of shares transfer (the 'Agreement') to acquire 18% equity in Shanxi Jianhe Coal Industry Limited Company ('Jianhe Coal') from two of Jianhe Coal's equity owners for RMB 100 million (approximately $14.6 million). Under the Agreement, the stockholder owning the other 82% of Jianhe Coal guaranteed Shanxi Coal first priority in the right to purchase other shares of Jianhe Coal transferred within the 24-month period after execution of the Agreement.

Jianhe Coal owns the mining rights to a coal mine in Huozhou County, Lingfen City, Shanxi Province, which is approximately 200 kilometers south of Taiyuan City, the capital city of Shanxi Province, and 50 kilometers from Puda Coal's Lingshi coal washing plant. The mine is approved to exploit two coal seams, of which one is of fat coal and the other is of high quality coking coal. The fat coal can be used either as raw coal for cleaned coal making or as high quality thermal coal for power plants. Coking coal is primary raw coal which can be used for cleaned coal making. The total coal resources of the two seams are about 30 million metric tons with economic minable reserve of about 18 million metric tons. The current designed capacity of the mine is about 450,000 metric tons and will be 600,000 metric tons after completion of reconstruction work.

Shanxi Coal will not take part in the operational management of the coal mine but will be paid dividends semiannually based on its 18% ownership in Jianhe Coal. In addition, as part of the Agreement, the stockholder owning the other 82% of Jianhe Coal guarantees that such dividends will be no less than 80% of annual net profits of Jianhe Coal.

Puda Coal will utilize its own funds to pay for the transaction, which is expected to close in approximately 90 days, subject to satisfaction of certain customary closing conditions, including governmental registration of the share transfer. Puda Coal will pay 60% of the purchase price within 10 days of the execution of the Agreement and the remaining 40% at the time of closing.

'Our participation in Jianhe Coal further solidifies our strategic plan to acquire coal mines opportunistically and position Puda Coal for strong growth, and we are gaining ground in our strategy to enter into the coal mining industry,' said Mr. Liping Zhu, President and CEO of Puda Coal. He added, 'Given the mine's close proximity to our Lingshi facility, we anticipate the Jianhe Coal mine will provide us with higher margins and increase our operational efficiency.'

About Puda Coal, Inc.

Puda Coal, through its subsidiaries, supplies premium grade coking coal to the steel making industry in China for use in making coke. The Company currently possesses 3.5 million metric tons of annual coking coal cleaning capacity. Shanxi Province provides 20-25% of China's coal output and supplies nearly 50% of China's coke. For more information, please visit http://www.pudacoalinc.c... .

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. For example, it is uncertain that the expected higher margins and increased efficiency from the transaction will be achieved. 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.

    For more information, please contact:

    Company Contact:
     Laby Wu, Chief Financial Officer
     Director of Investor Relations
     Puda Coal, Inc.
     Tel:   +86-10-6439-2405
     Email: labywu@gmail.com
     Web:   http://www.pudacoalinc.com

    Investor Relations Contact:
     Crocker Coulson, President
     CCG Investor Relations
     Tel:   +1-646-213-1915
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

     Elaine Ketchmere, Partner
     VP Financial Writing
     CCG Investor Relations
     Tel:   +1-310-954-1345
     Email: elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

------

Puda Coal Acquires 18% Interest of a Coal Mine in Shanxi Province

TAIYUAN, Shanxi, China, May 15 /PRNewswire-Asia-FirstCall/ -- Puda Coal, Inc. (OTC Bulletin Board: PUDC) ('Puda Coal'), a supplier of China's high grade metallurgical coking coal used to make coke for the purposes of steel manufacturing, today announced that on May 15, 2009, Shanxi Puda Coal Group Co. Ltd, its subsidiary in the People's Republic of China ('Shanxi Coal'), entered into a definitive Agreement of shares transfer (the 'Agreement') to acquire 18% equity in Shanxi Jianhe Coal Industry Limited Company ('Jianhe Coal') from two of Jianhe Coal's equity owners for RMB 100 million (approximately $14.6 million). Under the Agreement, the stockholder owning the other 82% of Jianhe Coal guaranteed Shanxi Coal first priority in the right to purchase other shares of Jianhe Coal transferred within the 24-month period after execution of the Agreement.

Jianhe Coal owns the mining rights to a coal mine in Huozhou County, Lingfen City, Shanxi Province, which is approximately 200 kilometers south of Taiyuan City, the capital city of Shanxi Province, and 50 kilometers from Puda Coal's Lingshi coal washing plant. The mine is approved to exploit two coal seams, of which one is of fat coal and the other is of high quality coking coal. The fat coal can be used either as raw coal for cleaned coal making or as high quality thermal coal for power plants. Coking coal is primary raw coal which can be used for cleaned coal making. The total coal resources of the two seams are about 30 million metric tons with economic minable reserve of about 18 million metric tons. The current designed capacity of the mine is about 450 metric tons and will be 600 metric tons after completion of reconstruction work.

Shanxi Coal will not take part in the operational management of the coal mine but will be paid dividends semiannually based on its 18% ownership in Jianhe Coal. In addition, as part of the Agreement, the stockholder owning the other 82% of Jianhe Coal guarantees that such dividends will be no less than 80% of annual net profits of Jianhe Coal.

Puda Coal will utilize its own funds to pay for the transaction, which is expected to close in approximately 90 days, subject to satisfaction of certain customary closing conditions, including governmental registration of the share transfer. Puda Coal will pay 60% of the purchase price within 10 days of the execution of the Agreement and the remaining 40% at the time of closing.

'Our participation in Jianhe Coal further solidifies our strategic plan to acquire coal mines opportunistically and position Puda Coal for strong growth, and we are gaining ground in our strategy to enter into the coal mining industry,' said Mr. Liping Zhu, President and CEO of Puda Coal. He added, 'Given the mine's close proximity to our Lingshi facility, we anticipate the Jianhe Coal mine will provide us with higher margins and increase our operational efficiency.'

About Puda Coal, Inc.

Puda Coal, through its subsidiaries, supplies premium grade coking coal to the steel making industry in China for use in making coke. The Company currently possesses 3.5 million metric tons of annual coking coal cleaning capacity. Shanxi Province provides 20-25% of China's coal output and supplies nearly 50% of China's coke. For more information, please visit http://www.pudacoalinc.c... .

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. For example, it is uncertain that the expected higher margins and increased efficiency from the transaction will be achieved. 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.

    For more information, please contact:

    Company Contact:
     Laby Wu, Chief Financial Officer
     Director of Investor Relations
     Puda Coal, Inc.
     Tel:   +86-10-6439-2405
     Email: labywu@gmail.com
     Web:   http://www.pudacoalinc.com

    Investor Relations Contact:
     Crocker Coulson, President
     CCG Investor Relations
     Tel:   +1-646-213-1915
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

     Elaine Ketchmere, Partner
     VP Financial Writing
     CCG Investor Relations
     Tel:   +1-310-954-1345
     Email: elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

SOURCE Puda Coal, Inc.

Source: PR Newswire (May 15, 2009 - 10:57 AM EDT)

 What:
 Representatives from Chinese companies will visit the NASDAQ
 MarketSite in New York City's Times Square to mark the China Rising
 Investment Conference at the Yale Club on May 18th, 2009.

 In honor of the occasion, Crocker Coulson, President of CCG Investor
 Relations, will preside over the Closing Bell. He will be joined by
 representatives from Chinese companies.

 Who:
 Some of the participating companies include:

 * Zhongpin Inc.  (Nasdaq:HOGS)
 * Yuhe International Inc (OTCBB:YUII)
 * Silicon Motion (Nasdaq:SIMO)
 * Puda Coal, Inc (OTCBB:PUDC)
 * Jiangbo Pharmaceuticals, Inc. (OTCBB:JGBO)
 * Hong Kong Highpower Technology, Inc. (AMEX:HPJ)
 * Dragon Pharmaceutical Inc. (OTCBB:DRUG)
 * China Yida Holding (OTCBB:CYID)
 * China Wind Systems, Inc. (OTCBB:CWSI)
 * China Transinfo Technology (Nasdaq:CTFO)
 * China Nutrifruit Group Limited (OTCBB:CNGL)
 * China Medicine Corporation (OTCBB:CHME)
 * China Biologic Products, Inc. (OTCBB:CBPO)
 * China-Biotics, Inc. (Nasdaq:CHBT)
 * ATA, Inc. (Nasdaq:ATAI)
 * Asia Biochem Group Corp. (TSX-V:ABC)
 * American Lorain Corporation (OTCBB:ALRC)

 Where:
 NASDAQ MarketSite - 4 Times Square - 43rd & Broadway - Broadcast Studio

 When:
 Monday, May 18th, 2009 at 3:45 p.m. to 4:00 p.m. ET

 Contacts:
 Mabel Zhang
 CCG Investor Relations
 (310) 954-1353 (office)
 Mabel.zhang@ccgir.com

 NASDAQ MarketSite:
 Robert Madden
 (646) 441-5045 (office)
 Robert.Madden@NASDAQOMX.com

Feed Information:

The Closing Bell is available from 3:50 p.m. to 4:05 p.m. on AMC-3/C-3 (ul 5985V; dl 3760H). The feed can also be found on Ascent fiber 1623. If you have any questions, please contact Robert Madden at (646) 441-5045.

Radio Feed:

An audio transmission of the Closing Bell is also available from 3:50 p.m. to 4:05 p.m. on uplink IA6 C band / transponder 24, downlink frequency 4180 horizontal. The feed can be found on Ascent fiber 1623 as well.

Webcast:

A live webcast of the NASDAQ Closing Bell will be available at: http://www.nasdaq.com/about/marketsiteto...

Photos:

To obtain a high-resolution photograph of the Market Close, please go to http://www.nasdaq.com/reference/marketsi... and click on the market close of your choice.

About China Rising Investment Conference:

The China Rising Investment Conference will host more than 30 public and private growth companies from China in sectors including consumer staples, agriculture, pharmaceuticals, infrastructure, information technology, advanced materials, capital goods, and alternative energy.

For more information please visit www.ccgirasia.com or the conference website at http://www.chinarisingconference.com/.

About CCG Investor Relations:

CCG is one of the nation's leading investor relations and strategic communications agencies. In business for more than 30 years, the agency provides a complete range of investor communications and counseling services to nearly 80 clients across multiple capital markets. CCG has been awarded a number of industry honors for its handling of complex investor relations and crisis communications matters. The agency's corporate headquarters is in Los Angeles with additional offices in New York; San Francisco; Beijing; Shanghai; Shenzhen; Frankfurt; Tel Aviv; and Dallas, Texas. For further information, contact CCG directly, or visit the Company's Web sites at http://www.ccgir.com and http://www.ccgirasia.com.

About NASDAQ OMX in China:

Currently there are a total of 96 companies listed on NASDAQ from Greater China, of which 78 are from Mainland China, 13 are from Hong Kong/Macao and 5 are from Taiwan. NASDAQ OMX technology powers some of the leading exchanges in Asia including the Hong Kong Exchanges and Clearing Ltd. (HKEX). In December, 2007, NASDAQ was the first U.S. exchange to open its office in Beijing, China.

About NASDAQ OMX:

The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, with over 3,800 listed companies. NASDAQ OMX Group offers multiple capital raising solutions to companies around the globe, including its U.S. listings market; NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North; and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and ETFs. NASDAQ OMX Group technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX Group exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit http://www.nasdaqomx.com.

NDAQA

Source: GlobeNewswire (May 15, 2009 - 10:00 AM EDT)

Jianhe Coal owns the mining rights to a coal mine in Huozhou County, Lingfen City, Shanxi Province, which is approximately 200 kilometers south of Taiyuan City, the capital city of Shanxi Province, and 50 kilometers from Puda Coal's Lingshi coal washing plant. The mine is approved to exploit two coal seams, of which one is of fat coal and the other is of high quality coking coal. The fat coal can be used either as raw coal for cleaned coal making or as high quality thermal coal for power plants. Coking coal is primary raw coal which can be used for cleaned coal making. The total coal resources of the two seams are about 30 million metric tons with economic minable reserve of about 18 million metric tons. The current designed capacity of the mine is about 450 metric tons and will be 600 metric tons after completion of reconstruction work.

Shanxi Coal will not take part in the operational management of the coal mine but will be paid dividends semiannually based on its 18% ownership in Jianhe Coal. In addition, as part of the Agreement, the stockholder owning the other 82% of Jianhe Coal guarantees that such dividends will be no less than 80% of annual net profits of Jianhe Coal.

Puda Coal will utilize its own funds to pay for the transaction, which is expected to close in approximately 90 days, subject to satisfaction of certain customary closing conditions, including governmental registration of the share transfer. Puda Coal will pay 60% of the purchase price within 10 days of the execution of the Agreement and the remaining 40% at the time of closing.

'Our participation in Jianhe Coal further solidifies our strategic plan to acquire coal mines opportunistically and position Puda Coal for strong growth, and we are gaining ground in our strategy to enter into the coal mining industry,' said Mr. Liping Zhu, President and CEO of Puda Coal. He added, 'Given the mine's close proximity to our Lingshi facility, we anticipate the Jianhe Coal mine will provide us with higher margins and increase our operational efficiency.'

About Puda Coal, Inc.

Puda Coal, through its subsidiaries, supplies premium grade coking coal to the steel making industry in China for use in making coke. The Company currently possesses 3.5 million metric tons of annual coking coal cleaning capacity. Shanxi Province provides 20-25% of China's coal output and supplies nearly 50% of China's coke. For more information, please visit http://www.pudacoalinc.c... .

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. For example, it is uncertain that the expected higher margins and increased efficiency from the transaction will be achieved. 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.

    For more information, please contact:

    Company Contact:
     Laby Wu, Chief Financial Officer
     Director of Investor Relations
     Puda Coal, Inc.
     Tel:   +86-10-6439-2405
     Email: labywu@gmail.com
     Web:   http://www.pudacoalinc.com

    Investor Relations Contact:
     Crocker Coulson, President
     CCG Investor Relations
     Tel:   +1-646-213-1915
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

     Elaine Ketchmere, Partner
     VP Financial Writing
     CCG Investor Relations
     Tel:   +1-310-954-1345
     Email: elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

SOURCE Puda Coal, Inc.

Source: PR Newswire (May 15, 2009 - 6:00 AM EDT)

    First Quarter 2009 Highlights and Recent Events
    -- First quarter revenue was $49.7 million, down 1.7% year-over-year
    -- Operating income totaled $3.0 million, compared to $6.2 million in the
       same quarter of 2008
    -- Net income was $2.1 million or $0.02 per diluted share, compared to
       $4.3 million, or $0.04 per diluted share, in the same quarter of 2008
    -- Sales of cleaned coal totaled 456,000 metric tons (MT), down 20.8%
       year-over-year
    -- Average selling price of cleaned coal rose 18.5% year-over-year to
       approximately $109 per MT (after adjusting for exchange rate
       differences)
    -- Received approval from the municipal government in April, 2009 to
       restructure six coal mines in Shanxi Province

'During the first quarter of 2009, global economic turmoil slowed steel industry production, which hurt our tonnage sales and profitability level,' said Mr. Liping Zhu, CEO and President of Puda Coal. 'However, we are pleased that the Company remained profitable and completed significant facilities upgrades.'

First Quarter 2009 Results

For the quarter ended March 31, 2009, total revenue was $49.7 million, down 1.7% from $50.6 million in the same quarter last year. Sales of cleaned coal were 456,000 MT, down 20.8% from 576,000 MT in the same period last year. The decrease in tonnage sales was primarily due to a longer Chinese New Year downtime as a result of decreased orders from customers in the first one and a half months of the period under the general economic downturn. The average selling price was approximately $109 (after adjusting for exchange rate differences), up 18.5% from $92 in the same quarter of 2008. The decline in tonnage sales was partially offset by the increase in selling price.

Gross profit for the quarter was $3.9 million, down 48.1% from $7.5 million for the same period of 2008. Gross margin was 7.8% in the quarter, down from 14.7% in the same period last year. The decline was attributable to an increase in the average purchase price of raw coal, which rose 22% from $58 per ton in the first quarter of 2008 to $71 per ton in the current quarter and was only partially offset by the increase in selling price, and increased cost in manufacturing overhead for the first quarter of 2009.

Operating expenses for the first quarter of 2009 were $0.9 million, down 25.4% from the same period last year. Selling expenses decreased 23.5% from $0.8 million to $0.6 million, due to the decrease in tonnage sales of cleaned coal. General and administrative expenses declined 28.5% from $0.5 million to $0.3 million, primarily due to a decrease in professional expenses. As a percentage of net revenue, operating expenses were 1.8% in the first quarter of 2009, compared to 2.4% in the same quarter last year.

Operating income was $3.0 million, or 5.9% of revenue in the first quarter of 2009, down 52.5% from $6.2 million, or 12.3% of net revenue in the first quarter of 2008.

Interest expense and debt financing costs totaled $0.1 million in the first quarter of 2009, down from $0.7 million a year ago. This decrease was due to lower non-cash expenses related to the amortization of the discount on the Company's convertible notes and warrants in the current quarter.

During the first quarters of 2009 and 2008, the Company recorded non-cash gains of $8,000 and $364,000, respectively, for the gain in fair value of the warrants issued in the November 2005 private placement.

Income tax expense declined 53.8% to $0.7 million in the first quarter of 2009 from $1.6 million in the year ago period, primarily due to a decrease in income.

Net income was $2.1 million, or $0.02 per diluted share, compared to $4.3 million, or $0.04 per diluted share, in the first quarter of 2008.

Financial Condition

As of March 31, 2009, Puda Coal had $24.4 million in cash and cash equivalents and $69.5 million in working capital and a current assets v. liability leverage of 6.7 to 1. Long-term debt was $7.5 million. At the end of the first quarter in 2009, shareholders' equity was $74.2 million, an increase from $72.3 million at the end of 2008.

The Company recorded cash used in operating activities of $14.3 million for the three months ended March 31, 2009, compared to cash generated from operating activities of $15.3 million for the same period prior year. This was primarily due to an increase in accounts receivable to $29.3 million at the end of the first quarter of 2009 from $14.6 million at the end of 2008, as many sales occurred in the second half of the quarter due to a longer Chinese New Year downtime under the general economic downturn. We expect that most of the receivables will be settled in the second quarter.

Recent Events

In April 2009, Puda Coal received an approval from the Yuncheng municipal government to consolidate six coal mines in Pinglu County, Shanxi Province. According to the letter of intent signed in January 2009, the consolidation of the coal mines requires approval from the Shanxi provincial government. Upon the approval of the project from the provincial government, the Company will acquire or consolidate those six coal mines.

Business Outlook

'The steel industry continues to experience slower production due to the general economic downturn,' said Mr. Zhu. 'However, we are confident that the long-term outlook for our clean coal operations remains attractive. More importantly, we are gradually developing our strategy to enter the coal mine industry, which should significantly enhance profitability and shareholder value in the future.'

Upcoming Events

Puda Coal will present at the upcoming China Rising Investment Conference hosted by CCG Investor Relations in New York, NY on May 18, 2009. During the conference, Puda Coal's management will be available for one-on-one meetings. Additionally, the Company will conduct a non-deal road show following the conference in New York and Philadelphia.

Conference Call

The Company will host a conference call at 9:00 a.m. ET on Friday, May 15, 2009 to discuss the first quarter 2009 results. To participate in the live conference call, please dial 888-419-5570 (international callers dial 617-896-9871) approximately 10 minutes prior to the start of the call and enter passcode 51103156. A replay will be available for 14 days starting on Friday, May 15 at 11:00 a.m. Eastern Time and can be accessed by dialing 888-286-8010 (international callers dial 617-801-6888) and entering passcode 70616981.

About Puda Coal, Inc.

Puda Coal, through its subsidiaries, supplies premium grade coking coal to the steel making industry in China for use in making coke. The Company currently possesses approximately 3.5 million metric tons of annual coking coal cleaning capacity. Shanxi Province provides 20-25% of China's coal output and supplies nearly 50% of China's coke. For more information, please visit http://www.pudacoalinc.c...

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. For example, our management's expectation about China's economic growth and the long term demand for high-grade coking coal, our business strategies such as our plan to acquire coal mines, and our belief that our management will successfully execute such business strategies, are subject to, among other things, the risks and uncertainties relating to the market condition beyond our control. 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.

                          - FINANCIAL TABLES FOLLOW -



                                PUDA COAL, INC.
                UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
              For the three months ended March 31, 2009 and 2008
        (In thousands of United States dollars, except per share data)

                                                   Three months ended March 31,
                                                          2009         2008
    NET REVENUE                                         $49,721      $50,598
    COST OF REVENUE                                      45,850       43,145
    GROSS PROFIT                                          3,871        7,453
    OPERATING EXPENSES
    Selling expenses                                        577          754
    General and administrative expenses                     341          477
    TOTAL OPERATING EXPENSES                                918        1,231
    INCOME FROM OPERATIONS                                2,953        6,222
    INTEREST INCOME                                          33           27
    INTEREST EXPENSE                                       (137)        (201)
    DEBT FINANCING COSTS                                     --         (513)
    DERIVATIVE UNREALIZED FAIR VALUE GAIN                     8          364
    INCOME BEFORE INCOME TAXES                            2,857        5,899
    INCOME TAXES                                           (741)      (1,604)
    NET INCOME                                            2,116        4,295
    OTHER COMPREHENSIVE INCOME
    Foreign currency translation adjustment                (166)       2,175
    COMPREHENSIVE INCOME                                 $1,950       $6,470
    EARNINGS PER SHARE
      - BASIC                                             $0.02        $0.04
      - DILUTED                                           $0.02        $0.04
    WEIGHTED AVERAGE NUMBER OF SHARES
     OUTSTANDING
      - BASIC                                       107,335,759  105,252,176
      - DILUTED                                     107,649,807  113,298,354



                                 PUDA COAL, INC.
                     UNAUDITED CONSOLIDATED BALANCE SHEETS
                     March 31, 2009 and December 31, 2008
                    (In thousands of United States dollars)

                                                    March 31,    December 31,
                                                      2009           2008
                                                                  (Audited)
    ASSETS
    CURRENT ASSETS
    Cash and cash equivalents                        $24,381         $39,108
    Accounts receivable, net                          29,309          14,645
    Other receivables                                      3               7
    Advances to suppliers
      - Related parties                                  820             879
      - Third parties                                  2,793           5,635
    Inventories                                       24,233          21,589

    Total current assets                              81,539          81,863

    PROPERTY, PLANT AND EQUIPMENT, NET                12,951          13,370

    INTANGIBLE ASSETS, NET                             3,378           3,399

    TOTAL ASSETS                                     $97,868         $98,632


    CURRENT LIABILITIES
    Current portion of long-term debt
      - Related party                                 $1,300          $1,300
    Accounts payable                                   4,530           4,272
    Other payables
      - Related parties                                1,028           1,030
      - Third parties                                  2,469           2,714
    Accrued expenses                                   1,903           1,991
    Income taxes payable                                 741           1,319
    VAT payable                                           --           1,726
    Distribution payable
      - Related party                                    117             117

    Total current liabilities                         12,088          14,469

    LONG-TERM LIABILITIES
    Long-term debt
      - Related party                                  7,475           7,800
    Derivative warrants                                4,078           4,086

    Total long-term liabilities                       11,553          11,886


    COMMITMENTS AND CONTINGENCIES

    STOCKHOLDERS' EQUITY
    Preferred stock, authorized 5,000,000
     shares, par value $0.01, issued and
     outstanding None                                     --             --
    Common stock, authorized 150,000,000
     shares, par value $0.001, issued and
     outstanding 107,335,759
     (2008: 107,335,759)                                 107             107
    Paid-in capital                                   31,555          31,555
    Statutory surplus reserve fund                     1,366           1,366
    Retained earnings                                 33,868          31,752
    Accumulated other comprehensive income             7,331           7,497

    Total stockholders' equity                        74,227          72,277

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $97,868         $98,632



                                 PUDA COAL, INC.
                UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
               For the three months ended March 31, 2009 and 2008
                    (In thousands of United States dollars)

                                                   Three months ended March 31,
                                                           2009        2008
    CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income                                            $2,116      $4,295
    Adjustments to reconcile net income to net
     cash provided by operating activities
    Amortization of land-use rights                           21          21
    Depreciation                                             419         401
    Allowance for doubtful debts                              44          --
    Amortization of discount on convertible
     notes and warrants                                       --         134
    Derivative unrealized fair value gain                     (8)       (364)
    Stock compensation                                        25          12
    Changes in operating assets and liabilities:
      (Increase)/decrease in accounts receivable         (14,724)         13
      Decrease in other receivables                            4           6
      Decrease/(increase) in advances to suppliers         2,889        (247)
      (Increase)/decrease in inventories                  (2,676)      8,633
      Increase in accounts payable                           265       1,186
      (Decrease)/increase in accrued expenses               (111)         36
      (Decrease)/increase in other payables                 (241)        427
      Decrease in income tax payable                        (576)       (664)
      (Decrease)/increase in VAT payable                  (1,722)      1,026
      Increase in penalty payable                             --         379

    Net cash (used in)/provided by operating
     activities                                          (14,275)     15,294

    CASH FLOWS FROM FINANCING ACTIVITIES:
    Repayment of long-term debt                             (325)       (325)

    Net cash used in financing activities                   (325)       (325)

    Effect of exchange rate changes on cash                 (127)        936

    Net (decease)/increase in cash and cash
     equivalents                                         (14,727)     15,905
    Cash and cash equivalents at beginning of period      39,108      16,381

    Cash and cash equivalents at end of period           $24,381     $32,286

    Supplementary cash flow information
    Cash paid during the period for:
         Interest                                           $137        $201
         Income taxes                                     $1,317      $2,269


    For more information, please contact:

    Investor Relations Contact:
     Crocker Coulson, President
     CCG Investor Relations
     Tel:   +1-646-213-1915
     Email: crocker.coulson@ccgir.com

     Elaine Ketchmere, VP Financial Writing
     CCG Investor Relations
     Tel:   +1-310-954-1345
     Email: elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

    Company Contact:
     Laby Wu, Chief Financial Officer, Director of Investor Relations
     Puda Coal, Inc.
     Tel:   +86-10-6439-2405
     Email: labywu@gmail.com
     Web:   http://www.pudacoalinc.com

SOURCE Puda Coal, Inc.

Source: PR Newswire (May 14, 2009 - 4:00 PM EDT)

To participate in the live conference call, please dial 888-419-5570 (international callers dial 617-896-9871) approximately 10 minutes prior to the start of the call and enter passcode 51103156.

A replay will be available for 14 days starting on Friday, May 15 at 11:00 a.m. Eastern Time and can be accessed by dialing 888-286-8010 (international callers 617-801-6888) and entering passcode 70616981.

About Puda Coal, Inc.

Puda Coal, through its subsidiaries, supplies premium grade coking coal to the steel making industry in China for use in making coke. The Company currently possesses 3.5 million metric tons of annual coking coal cleaning capacity. Shanxi Province provides 20 - 25% of China's coal output and supplies nearly 50% of China's coke. For more information, please visit http://www.pudacoalinc.c... .

    Investor Relations Contact:
     Crocker Coulson, President
     CCG Investor Relations
     Tel:   +1-646-213-1915
     Email: crocker.coulson@ccgir.com

     Elaine Ketchmere, VP of Financial Writing
     Tel:   +1-310-954-1345
     Email: elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

    Company Contact:
     Laby Wu, Chief Financial Officer, Director of Investor Relations
     Puda Coal, Inc.
     Tel:   +86-10-6439-2405
     Email: labywu@gmail.com
     Web:   http://www.pudacoalinc.com

SOURCE Puda Coal, Inc.

Source: PR Newswire (May 13, 2009 - 7:00 AM EDT)

According to the official notice issued by the Yuncheng municipal government dated April 1, 2009, the municipal government has given Puda Coal approval to consolidate six coal mines located in Pinglu County, Shanxi Province. According to the letter of intent signed in January 2009, the consolidation of the coal mines requires approval from the Shanxi provincial government. Following approval of the project from the provincial government, the Company will launch the project to acquire or merge those six coal mines.

Details related to timeframe to obtain the provincial government approval and the requirements and conditions for any binding agreement for detailed coal mine consolidation to be discussed and executed are not yet available. All relevant documents related to the project have been submitted to the Shanxi Provincial government for approval.

'We are pleased to have received municipal level approval for this project as we are now one step closer to obtaining final approval from the Shanxi Provincial government to proceed with the project,' said Mr. Liping Zhu, President and CEO of Puda Coal. 'We will work closely with the provincial government to move this process forward and will provide our shareholders updates in a timely matter.'

About Puda Coal, Inc.

Puda Coal, through its subsidiaries, supplies premium grade coking coal to the steel making industry in China for use in making coke. The Company currently possesses 3.5 million metric tons of annual coking coal cleaning capacity. Shanxi Province provides 20 - 25% of China's coal output and supplies nearly 50% of China's coke. For more information, please visit http://www.pudacoalinc.c...

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 as well as local and global economic and financial conditions. For example, the entry into of a binding agreement is subject to various conditions and requirements of the Provincial government, which we may not be able to satisfy, and our management's ability to successfully consolidate and increase output at the mines and construct a coal gangue power plant, are subject to, among other things, the risks and uncertainties relating to the market condition beyond our control. We will not, and 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.

    For more information, please contact:

    Investor Relations Contact:
     Crocker Coulson, President
     CCG Investor Relations
     Tel:   +1-646-213-1915
     Email: crocker.coulson@ccgir.com
     Elaine Ketchmere, VP of Financial Writing
     Tel:   +1-310-954-1345
     Email: elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

    Company Contact:
     Laby Wu, Chief Financial Officer; Director of Investor Relations
     Puda Coal, Inc.
     Tel:   +86-10-6439-2405
     Email: labywu@gmail.com
     Web:   http://www.pudacoalinc.com

SOURCE Puda Coal, Inc.

Source: PR Newswire (April 21, 2009 - 9:30 AM EDT)