L + L Energy – Glaucus Research

L&L Energy, Inc. (“LLEN” or the “company”) operates a coal mining, coal washing, coal coking and coal wholesaling business
out of the remoteYunnan and Guizhou provinces in the People’s Republic of China (“China”). LLEN also maintains a
corporate office in Seattle,Washington. Like many other Chinese companies that have been investigated and delisted by U.S.
securities regulators for fraud, LLEN went public through a reverse merger transaction (“RTO”).

On paper, LLEN’s performance appears too good to be true. In three years, with little to no experience in operating a coal
mine among its executive officers, LLEN has purportedly become one of the most profitable pound for pound coal mining
companies in the world.

The adage goes that ‘things that are too good to be true usually are.’ We believe that LLEN is no different. According to publicly
available SAIC filings obtained from China, LLEN has greatly exaggerated its net sales and the value of its assets. Apparently
we were not the only ones questioning the authenticity of LLEN’s financials.