Asian American Coal, Inc. (AACI) is the leading foreign-owned coal company operating in China today. Backed by world renowned energy investment funds and mining companies, AACI's management team is the most seasoned in the Chinese coal industry today.

Asian American Coal was started in 1999 as a privately held development company to invest in coal and related assets in China. AACI has since evolved into the funding vehicle for developing internationally-managed energy properties.

AACI currently has two projects: Daning Mine and Goehe Mine.

The Daning Mine in Shanxi is known as the Shanxi Asian American Daning-Energy Company (SAADEC) is the first modern day foreign invested coal mining joint venture in the People's Republic of China. AACI holds a 56% equity stake in the joint venture, and operates the mine using the latest in international equipment and technology to maximize safety, production and efficiency. AACI signed the joint venture agreement in 2000 and placed the first unit underground in 2002.

The mine design is predicated on a reserve base of approximately 170 million tonnes of anthracite coal. The #3 seam averages 4.5 meters in thickness and is overlain by 150 meters to 600 meters of overburden, and is accessed from three slopes driven from the mine yard and two ventilation shafts.

Following three years of development, engineering and production studies; the longwall was ordered in late 2004 and commissioned in August 2006. Currently, the mine is operating at an intermediate capacity waiting completion of a rail-spur slated for late 2007. The long-term mine plan is to produce on average ~6 million tonnes per year, with the capability of raising future production to 8 million tonnes per year.

The mine is located near the village of Daning in Shanxi province (approximately an 8-hour drive from Beijing). SAADEC produces an environmentally compliant low ash, low sulfur coal with intrinsically high heat values. The #3 coal seam is known throughout the region for its consistent quality and characteristics. All of SAADEC's coal is sold within a 400 km radius of the mine.

Coal is treated and optimized through the use of modern heavy-medium coarse and fine coal washing circuits. This provides a blend of products designed to maximize the mine's product value and meet market product specifications. It is anticipated that through the life of the mine, products will be primarily used in the fertilizer, chemical and utility industries.

Currently the mine operates one 225 meter wide, high seam longwall system that cuts an 850 mm web of coal per pass. Development is achieved through the use of 2 foreign continuous miners and 2 domestic roadheaders. All teams and underground personnel receive training and have at their disposal all tools and equipment found in any mine in Australia, or the United States.

The mine has introduced numerous technical advances to the Chinese coal industry. These advancements include incorporation of high-seam computer aided longwall equipment into the mine design, the use of bleeder airshaft in the ventilation design, use of a state of the art in line horizontal directional underground drills and incorporating surface multi-lateral horizontal drilling for additional methane drainage.

SAADEC pays great attention to mine safety. The national stipulation rules that coal mines should appropriate RMB 10 yuan/ton out of their coal sales revenue for safety. SAADEC safety budget in 2007 is 7.93 million yuan, or RMB 24 yuan/ton, much higher than the national standard.

For more information on Asian American Coal, Inc. and its other operations please visit: http://www.asianamericancoal.com/