Subsidiary of American International Industries, Inc. Intends To Acquire A Refinery

July 6, 2010

International American Refineries, Inc., a wholly owned subsidiary of American International Industries (Nasdaq: AMIN) has signed a Letter of Intent to acquire all of the outstanding shares of privately-held Norcorom Industries Srl. Norcorom owns a refinery in Ingleside, Texas with a capacity of 40,000 barrels per day.

The purchase will include the refinery, barge dock, 19 storage tanks, and pipes to and from the dock. The 19 storage tanks have a total capacity of 841,000 barrels. The total land area included in the acquisition will be approximately 101 acres.

While a purchase price has not been released, AMIN noted it will be an all cash transaction. AMIN is currently performing due diligence with specific attention to the costs to bring the refinery up to 2010 standards. If due diligence is satisfactory, AMIN is hopeful to close the acquisition by the end of 2010. Daniel Dror, Chairman and CEO of American International Industries, Inc., believes the acquisition of energy assets, specifically refining asset is timely with a positive near term outlook.

This is not AMIN’s first attempt to acquire refining assets. In 2005 AMIN signed an agreement to acquire the Nixon Refinery. The sellers refused to deliver title and in 2006 AMIN booked a $2,000,000 settlement for breach of contract

American International Industries is a diversified holding company with interests in industry, finance, oil & gas, and real estate.

Disclosure: The author holds a long position in AMIN at the time of this article.

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