Message #6 From:
NewsBot Date: October 12, 2007 06:23:33 PM
AAA Energy Inc. Agent Signs LOI on China Moly Prospects
AAA Energy Inc. (OTCBB: AAAEStock Forums) is pleased to
announce that further to its news release dated October 4, 2007, Mr. Siu
Man Kwan, the Company's adviser and authorized agent in China, has signed
an initial letter of intent covering 2 molybdenum prospects located in the
Henan Province.
In accordance with regulatory stipulations, Mr. Kwan signed a Letter of
Investment Intent between his company, Nanjing Orient Railway
Communications Equipment Co. Ltd. (see news release dated September 4,
2007) and Henan Qian Yin Mining Enterprises Ltd., a local government owned
and controlled investment enterprise that owns the rights to 2 molybdenum
mines with exploration potential. These 2 molybdenum properties are the
Henan XiXia Molybdenum Gold Mine ("Henan XiXia") and the LuoNing Bei Pan
Yang Molybdenum Lead Mine ("LuoNing").
Under the terms of the above Agreement, the Company can acquire up to an
80% equity interest in these 2 moly properties by investing up to RMB20
million (about US $2.4 million). The funds will be expended under the
Company's supervision for working capital, exploration, and mine production
activities.
Henan XiXia is currently in small-scale production from a 1 square
kilometer area and the ore, with reported average grades of 0.153% Mo, is
sold to the local Luanchuan Molybdenum smelter.
LuoNing comprises a brownfields molybdenum exploration concession area of
3.91 square kilometers and is located about 120 kilometers from the major
city of Luoyang. Teams from the local Chinese exploration bureau report
average grades at LuoNing up to 0.09% molybdenum and 6.5% lead.
The Company is now in receipt of initial geologic reports and maps on the 2
moly prospects and they are being translated. An agreement between the
Company and Nanjing Orient will be formalized shortly, giving the Company
the right to assume Nanjing Orient's position in the above Letter of
Investment Intent.
China is the third-largest producer of molybdenum in the world, a specialty
metal used for hardening steel. The white metal is valued for its
anti-corrosive and strengthening properties and makes up two percent to ten
percent of stainless steel. In 2004, China produced approximately 31,000
tonnes of molybdenum as compared with 30,600 tonnes in 2003. The country's
identified reserves of approximately 8.55 Mt ranks second in worldwide
reserves. Three of the six largest producing molybdenum mines in the world
are located in China: Luanchuan in the Henan Province, Daheishan in the
Jilin Province (1.1 Mt); and Jinduicheng in the Shaanxi Province (970,000
t).
Further Information
Please feel free to call investor relations toll-free at 1-877-990-1122 to
receive a full corporate investor's package.
AAA Energy Inc. is a publicly traded mineral and natural resource
exploration company with its head office located in Reno, Nevada. AAA
Energy Inc. aims to secure and develop a portfolio of high quality resource
properties globally and in under-explored resource horizons. AAA Energy
Inc. trades on the NASDAQ OTC BB under the ticker symbol: AAAE.
On behalf of the Board
Dr. Earl Abbott, President
Forward-Looking Statements
Statements in this news release that are not historical facts are
forward-looking statements that are subject to risks and uncertainties.
Words such as "expects," "intends," "plans," "may," "could," "should,"
"anticipates," "likely," "believes" and words of similar import also
identify
forward-looking statements. Forward-looking statements are based on current
facts and analyses and other information that are based on forecasts of
future results, estimates of amounts not yet determined and assumptions of
management, including, but not limited to, the Company's belief that AAA
Energy Inc. can identify and successfully negotiate leases for natural and
mineral resource properties in China and elsewhere, and that the Company
can participate in the exploration of these resource properties. Actual
results may differ materially from those currently anticipated due to a
number of factors beyond the reasonable control of the Company. Additional
information on risks and other factors that may affect the business and
financial results of the Company can be found in filings of the Company
with the U.S. Securities and Exchange Commission.
