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Yongye Nongfeng Signs Agreement to Secure Coal Resources Project in Inner Mongolia, PRC
Date:3/12/2010

BEIJING, March 12 /PRNewswire-Asia-FirstCall/ -- Yongye International, Inc. (Nasdaq: YONG), ("Yongye or "the Company") a leading developer, manufacturer, and distributor of Shengmingsu brand plant and animal nutrient products in the People's Republic of China (PRC), today announced its operating entity in China, Yongye Nongfeng Biotechnology, signed a preliminary agreement with a local supplier of humic acid to purchase an undeveloped lignite coal resources project in Inner Mongolia, PRC. Consummation of the acquisition requires the satisfaction of certain customary closing conditions, including receipt of governmental approval. Yongye Nongfeng is seeking to meet these requirements and complete the transfer as quickly as practicable.

The preliminary agreement with Wuchuan Shuntong Humic Acid Trading Company Limited ("Shuntong") provides for the acquisition of Shuntong's development rights to a currently undeveloped lignite coal resource project located in Wuchuan County, a suburb located outside the city of Hohhot, Inner Mongolia, where the company's major operations reside in the PRC. According to a third party valuation report, the project area is estimated to contain over 40 million square meters of surface level lignite coal which can supply the company's long term needs. According to the agreement, Nongfeng will pay Shuntong RMB240 million ($35.1 million) to acquire the development rights for this pro
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SOURCE Yongye International, Inc.
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