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 withthe proper
authorities.

  oDuring the period in question, L&Loperated two (2) washingfacilities,
    Hong Xing andTaiFung. During fiscal 2013, Hong Xing washingonly
    representedapproximately 20% of consolidated total company sales (not 39%
    as alleged by GeoInvesting), while TaiFung washing
    representedapproximately 19% of companysales. As previously disclosed,
    theCompany idled Hong Xing plant this summerto redirect its capital
    investment to fulfill a large wholesale supply agreement with Datang. The
    Company has submitted a monthly sales analysis toauditors 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
    2013.

In addition, GeoInvesting's allegation that they "sent [a] representative to
visit theShizong County Local Tax Bureau, Second Branch [and t]he local tax
bureauconfirmedthat the Hong Xing Coal Washing Factory paid less thanRMB
30,000 to theShizong County Local Tax Bureau,"fundamentally misrepresents
how Chinese tax collections operate. Hong Xing pays taxes to the proper
Chineseauthorities for its sales. TheShizong County Local Tax Bureau,
Second Branch ("Second Branch") is a county tax agent that isonly 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 Branchrefused to give any
information to GeoInvesting's investigators. Acertificationreceived from
theSecond Branchstatesthat it recently rejected a request from an unknown
party to review Hong Xing's data. The requesting partyfailed to provide
proper identification.

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

For further information, please contact:

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

ICR, LLC
Gary Dvorchak, CFA
Senior Vice President
U.S.: +1 (310) 954-1123
China: +86 (10) 6583-7528
Email:gary.dvorchak@icrinc.com

SOURCE L & L Energy, Inc.

Website: http://www.llenergyinc.com
 
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