Profile: L & L Energy Inc (LLEN.O)

L & L Energy, Inc. (L&L), incorporated on November 17, 1999, is engaged in coal operations in Yunnan and Guizhou provinces in southern part of the People's Republic of China. As of April 30, 2012, the Company had four coal mines, two coal washing plants, one coking facility, and three coal wholesale and distribution networks. On February 3, 2012, L&L acquired a 51% controlling interest in Weishe coal mine in Guizhou Province, China. In September 2012, it acquired the existing operations of GuangYeh Coal Sales Co. In November 2011, the Company established a coal wholesale and distributor corporation in China (DaXing L & L Coal Co., Ltd. (DaXing)) and owned a 100% equity interest in DaXing. In August 2011, the Company established another subsidiary Guizhou LiWei Coal Co. Ltd., (Guizhou LiWei).

Coal Mine Operations

L&L has the right to extract coal from four mines located in Yunnan and Guizhou provinces of China: the DaPuAn mine and the SuTsong mine in Yunnan Province, and, the WeiShe mine, and the DaPing mine in Guizhou Province. DaPuAn Coal Mine is located in Bai Zi Chong, DaPuAn Village, Xiongbi Town, Shizong County, Yunnan Province, China, which is an underground coal mine. SuTsong Coal Mine is located in A'ang Town, Luoping County, Yunnan Province, China. The SuTsong coal mine is an underground coal mine. The Ping Yi Coal Mine is located in Yiche Village, Ping Guan Town, Liu Panshui City, Pan County, Guizhou Province, China, which is an underground coal mine. The Da Ping Coal Mine is located in Shinao Village, Ping Guan Town, Pan County, Liu Panshui City, Guizhou Province, China, which is an underground coal mine. The WeiShe Coal Mine is located in WeiShe FangYuTang Village, HeZhang County, Bijie Area, Guizhou Province, China, which is an underground coal mine. As of April 30, 2012, TianRi Mine had an estimated reserve of 53 million tons of coal.

Coal Wholesale Operations

In addition to coal mining, the Company also engaged in coal wholesale and distribution through three subsidiaries, which include Kunming Biaoyu Industrial Boiler Co., Ltd. (KMC), Yunnan L&L Tai Fung (Tai Fung) in Yunnan Province and DaXing L & L Coal Co., Ltd. (DaXing) in Guizhou Province. As of April 30, 2012, KMC had two coal storage facilities for its consolidation and wholesale operations with railroad loading access. Tai Fung began operations in May 2011. DaXing, in April 2012, secured coal storage and rail loading space in ShinPingBa in Guizhou Province.

Coal Washing Operations

Coal washing involves crushing coal and washing out soluble sulfur compounds with water or other solvents. As of April 30, 2012, L&L owned two washing facilities with an aggregate annual coal-washing capacity of approximately 600,000 tons. The facility at Hong Xing washes coal mainly for third parties. The facility at the DaPuAn Coal mine only washes coal from the DaPuAn mine. Coal washing produces two byproducts. One byproduct in China is commonly known as medium coal, which is coal that does not have sufficient thermal value for coking. The other byproduct is coal slurries (or coal slime), which are the castoffs and debris from the washing process.

Coke Manufacturing Operations

L&L produces metallurgical coke. Metallurgical coke is primarily used for steel manufacturing. Zone Lin Coal Coking Factory in China (ZoneLin) has the capacity to produce 150,000 tons of coke annually. Coal is sent to a coal blending room where it is crushed and blended to achieve an optimal coking blend.