January 17, 2012
We are offering conclusive proof that LLEN does not own the Ping Yi Mine:
- We offer evidence that undoubtedly proves that LLEN did not purchase
the Ping Yi Mine as it has been repeatedly asserted in SEC filings.
- We offer evidence that undoubtedly proves that the Ping Yi Mine is for sale by an
investment group with no discernible ties to LLEN.
- We reference multiple data points across several official Chinese and SEC filings
that precisely match information on the SAIC filing we have pulled. We argue this
identical match is conclusive proof that we have not misidentified the Ping
One of our pieces of evidence includes an official government document published
in a public news periodical that supports our conclusion that LLEN does not own
the Ping Yi Mine. We spoke to the person representing the investment group
selling the Ping Yi mine who repeatedly denies that LLEN ever purchased the mine.
- Directly check the current basic information regarding the Ping Yi Mine yourself
with only a click. The investor can directly go to the Guizhou Province SAIC Office
to check the current status of the Ping Yi Mine. After typing the full name
of Ping Yi Mine and security code, you can see that the current legal representative
is Mr. Hu Shiwei, who is not affiliated with LLEN, and the current business license
number is 5200002932260.
As previously stated in our original report, and even more so after further due
diligence, we believe that LLEN shares are not investable and pose an extreme risk
to long investors.
We also take note of LLEN's two press releases this morning:
In the face of on the record, detailed accusations from researchers responsible
for discovering a series of massive governance frauds at the like of YUII and PUDA,
a press release promising a looming 25% revenue increase via expanded sales and
marketing joint agreements should be seen as an attempt to distract investors from
the grave matters at hand.
Similarly, as we continue to demonstrate, there is a large amount of conclusive
documentary evidence from official sources that LLEN utterly ignores. Instead, its
management appears unconcerned that someone is advertising one of their key assets
for sale. In sum, we are being asked to trust their legal team and Auditor,
Kabani and Co, a firm that has been involved in many of the most dubious reverse
merger audits. We respectfully decline to give them our trust.
These evasions and tactics should be abundantly familiar to the burned investors
of dozens of Chinese reverse mergers and bodes ill for the value of their capital.
Any long or short LLEN investor should read every page of the following report thoroughly.