Puda Coal Closes Public Offering with $101.5 Million Gross Proceeds

TAIYUAN, China, Dec. 17, 2010 /PRNewswire-Asia/ -- Puda Coal, Inc. (NYSE AMEX: PUDA) ("Puda Coal" or the "Company"), a supplier of high grade metallurgical coking coal used to produce coke for steel manufacturing in China and a consolidator of twelve coal mines in Shanxi Province, China, today announced that it has completed and closed its public offering of 9 million shares of common stock at a public offering price of $12 per share, including 7.85 million primary shares sold in the closing on December 13, 2010 and an additional 1.15 million shares pursuant to the underwriters' exercise of an over-allotment option on December 16, 2010.  The public offering was priced on December 8, 2010. The aggregate proceeds to the Company are approximately $101.5 million after underwriting discounts and before expenses. Puda Coal expects to use the net proceeds of the offering, together with its available cash, to fund the previously-announced coal mine acquisitions and their consolidation and construction.

Macquarie Capital and Brean Murray, Carret & Co. acted as joint lead managers and bookrunners in the offering.  

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 is in the process of adding coal mining operations to its business, as an acquirer and consolidator and acquirer of coal mines in Shanxi Province. 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 Pinglu County in southern Shanxi Province. Shanxi Coal plans to consolidate the eight coal mines into five, increasing their total annual capacity from approximately 1.1 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.com.