Arabian American Announces Completion of Construction Phase of AMAK Mine

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Facility Expected to Commence Operations on November 28, 2011

SUGAR LAND, Texas, Oct. 25, 2011 /PRNewswire/ -- Arabian American Development Co. (Nasdaq: ARSD) announced today that AMAK (Al Masane Al Kobra Mining Company), the joint stock company in Saudi Arabia which is 37% owned by Arabian American, has successfully completed the construction phase of the mine and has issued notice to the surface facility operator that it will turn the facility over to them to begin operations on November 28, 2011.

Nick Carter, President and Chief Executive Officer, commented, "The completion of the construction phase of the mine is a major milestone and signals that we are officially moving into the operating stage. The surface facility operator, China National Geological & Mining Corporation, is currently staffing the facility, training the personnel, and getting ready for the operation, management and maintenance of the surface works of the mine. Between now and November 28th, AMAK will be completing punch list items and preparing the plant to commence operations."

Mr. Carter continued, "Underground development work is approaching the stage where sufficient ore will be produced each day to keep the plant running. Additionally, the trucking, logistics, and marketing efforts are nearing completion. It is exciting to see the package coming together on what is essentially a brand new startup venture. The ore processing facility is a complex mechanical and chemical operation that will have startup glitches seen typically in the industry, however management is doing all it can to prepare for a smooth transition to steady operations. AMAK's staff and Board of Directors continue to strive toward the goal of operating cash flows beginning in the first or second quarter of  2012."

About Arabian American Development Company (ARSD)

ARSD owns and operates a petrochemical facility located in southeast Texas just north of Beaumont which specializes in high purity petrochemical solvents and other solvent type manufacturing. The Company is also the original developer and now a 37% owner of Al-Masane Al-Kobra Mining Company (AMAK), a Saudi Arabian joint stock company which is in the final stages of development in Najran Province of southwestern Saudi Arabia. The mine is scheduled to be in production in early 2012 and will produce economic quantities of copper, zinc, gold, and silver.

Safe Harbor

Statements in this release that are not historical facts are forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon management's belief as well as assumptions made by and information currently available to management. Because such statements are based upon expectations as to future economic performance and are not statements of fact, actual results may differ from those projected. These risks, as well as others, are discussed in greater detail in Arabian American's filings with the Securities and Exchange Commission, including Arabian American's Annual Report on Form 10-K for the year ended December 31, 2010, and the Company's subsequent Quarterly Reports on Form 10-Q.

Company Contact:    

Nick Carter, President and Chief Executive Officer

(409) 385-8300

Investor Contact:

Cameron Donahue

Hayden IR

(651) 653-1854

SOURCE Arabian American Development Co.