Puda Coal Inc announced that its Independent Committee has retained Cowen and Company, LLC and Morgan Joseph TriArtisan LLC as financial advisors in connection with the previously announced proposed preliminary buy-out offer made by Mr Ming Zhao the Chairman of Puda Coal to acquire all outstanding shares of common stock of the Company. In response to the offer, the Board of Directors of the Company authorized the Independent Committee to review and evaluate the proposal and, if appropriate, negotiate its terms and take any other action in connection therewith.

In a series of conference calls and e-mail communications over the past several weeks with lawyers from Shearman & Sterling, Mr Zhao's legal counsel, the Independent Committee has requested a draft Merger Agreement and information and documentation from Mr Zhao, including documentation relating to all Mr Zhao's transactions involving Puda Coal and its subsidiaries, that will enable the Independent Committee to evaluate Mr Zhao's preliminary proposal.

Since the proposal was announced, lawyers from Shearman & Sterling have indicated to representatives of the Independent Committee that they were working to provide this information to the Independent Committee, although, to date, this information has not yet been provided. Last week, lawyers from Shearman & Sterling indicated to representatives of the Independent Committee that they hope to provide substantial additional information by June 22nd, but have not yet indicated a date by which they propose to deliver a first draft of the Merger Agreement.

The Independent Committee will continue to communicate with Shearman & Sterling regarding the proposed transaction. Neither the Company nor the Independent Committee can provide any assurances that a transaction will be formally proposed, or that if proposed, a definitive agreement will be executed or approved or that a transaction will be consummated.