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L&L Provides Additional Information to Refute Short Seller Attack

      L&L Provides Additional Information to Refute Short Seller Attack

PR Newswire

SEATTLE, Oct. 7, 2013

SEATTLE, Oct. 7, 2013 /PRNewswire/ -- L & L Energy, Inc. (NASDAQ: "LLEN")
("L&L" or the "Company"), a U.S.-based company with energy (coal) operations
in China, today released additional information to refute the recent
defamatory article by short-seller firm, GeoInvesting.  In addition to
contracts, legal opinions and other supportive evidence already produced, the
Company has collected additional documents refuting allegations that its Hong
Xing's coal washing facility ("Hong Xing") was shut down since 2012 and
produced no revenue.  The Company has collected the following documentation
and explanatory material, which will be also shared with the proper

  o During the period in question, L&L operated two (2) washing facilities,
    Hong Xing and TaiFung.  During fiscal 2013, Hong Xing washing only
    represented approximately 20% of consolidated total company sales (not 39%
    as alleged by GeoInvesting), while TaiFung washing
    represented approximately 19% of company sales.  As previously disclosed,
    the Company idled Hong Xing plant this summer to redirect its capital
    investment to fulfill a large wholesale supply agreement with Datang.  The
    Company has submitted a monthly sales analysis to auditors that reflects
    the reduction of activity at Hong Xing from May to June 2013.  Hong Xing
    ceased operations as of June 30, 2013 and produced no revenue in July

In addition, GeoInvesting's allegation that they "sent [a] representative to
visit the Shizong County Local Tax Bureau, Second Branch [and t]he local tax
bureau confirmed that the Hong Xing Coal Washing Factory paid less than RMB
30,000 to the Shizong County Local Tax Bureau," fundamentally misrepresents
how Chinese tax collections operate.  Hong Xing pays taxes to the proper
Chinese authorities for its sales.  The Shizong County Local Tax Bureau,
Second Branch ("Second Branch") is a county tax agent that is only responsible
for the county's special surcharges and taxes, including local education and
construction surcharges. The surcharge amount is generally small. 

Furthermore, L&L believes that the Second Branch refused to give any
information to GeoInvesting's investigators.  A certification received from
the Second Branch states that it recently rejected a request from an unknown
party to review Hong Xing's data.  The requesting party failed to provide
proper identification.

L&L will provide all relevant documentation, including the Second Branch's
certification, to the proper authorities.

For further information, please contact:

L&L Energy, Inc.
Investor Relations
+1 (206) 264-8065

Gary Dvorchak, CFA 
Senior Vice President 
U.S.: +1 (310) 954-1123 
China: +86 (10) 6583-7528 

SOURCE L & L Energy, Inc.

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