On April 8, 2011, an investor website published a research report alleging that through a series of transactions beginning in September 2009, Zhao improperly transferred shares of Shanxi Coal to himself and then, in July 2010, sold 49% of the interest in Shanxi Coal for RMB 245 million ($37.1 million) and later pledged the remaining interest in Shanxi Coal as collateral for a three year loan for RMB 2.5 billion ($379 million). Following this news, the price of Puda Coal shares fell $3.10 per share, or nearly 33%, to close at $6.00 per share on April 8, 2011, on unusually heavy trading volume. On the next trading day, April 11, 2011, Puda Coal issued a press release stating that, “[a]lthough the investigation is in its preliminary stages, evidence supports the allegation that there were transfers by Mr. Zhao in subsidiary ownership that were inconsistent with disclosure made by the Company in its public securities filings. Mr. Zhao has agreed to a voluntarily leave of absence as Chairman of the Board of the Company until the investigation is complete.” Following this announcement, the New York Stock Exchange halted trading in Puda Coal stock on April 11, 2011.About Lieff Cabraser Lieff, Cabraser, Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last eight consecutive years. For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.