Arabian American Announces First Sale and Shipment of Zinc and Copper Concentrates from Al Masane Al Kobra Mine

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Total Revenue from Sale of Both Products could Exceed $15 Million for First Shipment

SUGAR LAND, Texas, Aug. 22, 2012 /PRNewswire/ -- Arabian American Development Co. (NYSE: ARSD) today announced that the Al Masane Al Kobra (AMAK) mine, which is 37% owned by Arabian American, has executed its first sales of zinc concentrate and copper concentrate which are scheduled to ship from the Port of Jizan, Saudi Arabia, in the first half of September.

A minimum of 5,000 tons of concentrate is required to create a cargo for scheduling. The contract with the buyer of the copper concentrate, an Indian smelter, allows for a shipment of up to 7,000 metric tons of product which will generate over $11.5 million in gross revenue for the Saudi joint stock company. The contract for the zinc concentrate, with a smelter in South Korea, allows for a shipment of up to 7,000 metric tons and will generate over $4.5 million in revenue if the full amount is loaded. The final amounts loaded depends upon the size of the ship nominated to carry the cargo and the timing of its arrival in the Port of Jizan. Production at the AMAK mill of the two products is continuing daily, and reliability has been greatly improved over the last several months. Typically, AMAK will load a cargo hold every four to six weeks if production continues as planned.

Nick Carter, President and Chief Executive Officer of Arabian American Development Company, commented, "We are extremely pleased to announce the milestone event of the first sale and shipment of products from the mine. This is the culmination of a successful collaboration with our Saudi partners, the mill operator, and our sales and marketing partners after years of development. Current market demand for zinc has made the mine's zinc concentrate attractive to zinc smelters, and the mill is running currently at about 95% capacity. The mine is entering the stage of full and routine operation. Recovery of the metal from the ore is very good, the quality of the concentrate is good, and we are looking forward to establishing a good track record for quality and reliability in the world-wide marketplace."

Mr. Carter continued, "The permanent facility for storing and loading concentrates at the Port of Jizan is nearing completion, and  may be used for this first shipment if all goes well. The AMAK staff has managed this startup period in a professional manner, and we look forward to these shipments and loadings becoming an ordinary and routine happening."

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 37% owner of AMAK, a Saudi Arabian joint stock mining company.

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, 2011, 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.