| ý | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934For      The Fiscal Year Ended December 31, 2009OR                    |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ¨ | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934For      The Transition Period from ___________ to ________  |

| Delaware(State      or other jurisdiction of incorporation or organization)                    | 75-1256622(I.R.S.      EmployerIdentification      No.)  |
|-----------------------------------------------------------------------------------------------------|---------------------------------------------------------------|
| 7752      FM 418P.      O. Box 1636Silsbee,      Texas(Address      of principal executive offices) | 77656(Zip      code)                                          |

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|  PART      I                                                                                                                                                                            |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ITEM      1.   BUSINESS                                                                                                                                                       |   |
|                                                                                                                                                                                         | General | 1 |
|                                                                                                                                                                                         | United      States Operations | 1 |
|                                                                                                                                                                                         | European      Operations | 1 |
|                                                                                                                                                                                         | Saudi      Arabia Operations | 1 |
|                                                                                                                                                                                         | Investment      In AMAK | 2 |
|                                                                                                                                                                                         | Environmental | 12 |
|                                                                                                                                                                                         | Personnel | 13 |
|                                                                                                                                                                                         | Competition | 13 |
|                                                                                                                                                                                         | Available      Information | 13 |
|                                                                                                                                                                                         |   |   |
| ITEM      1A.  RISK FACTORS                                                                                                                                                        | 13 |
|                                                                                                                                                                                         |   |   |
| ITEM      1B.  UNRESOLVED STAFF COMMENTS                                                                                                                                           | 21 |
|                                                                                                                                                                                         |   |   |
| ITEM      2.   PROPERTIES                                                                                                                                                     |   |
|                                                                                                                                                                                         | United      States Specialty Products Facility | 22 |
|                                                                                                                                                                                         | United      States Mineral Interests | 24 |
|                                                                                                                                                                                         | Offices | 25 |
|                                                                                                                                                                                         |   |   |
| ITEM      3.   LEGAL PROCEEDINGS                                                                                                                                              | 26 |
|                                                                                                                                                                                         |   |   |
| ITEM      4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY      HOLDERS                                                                                                       | 26 |
|                                                                                                                                                                                         |   |   |
|                                                                                                                                                                                         |  PART      II  |   |
| ITEM      5.   MARKET FOR REGISTRANT’S COMMON EQUITY,      RELATED   STOCKHOLDER   MATTERS      AND ISSUER PURCHASES OF EQUITY SECURITIES | 28 |
|                                                                                                                                                                                         |   |   |
| ITEM      6.   SELECTED FINANCIAL DATA                                                                                                                                        | 28 |
|                                                                                                                                                                                         |   |   |
| ITEM      7.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF      FINANCIAL  CONDITION AND   RESULTS      OF OPERATION                               |   |
|                                                                                                                                                                                         | Overview | 29 |
|                                                                                                                                                                                         | Business      Environment & Risk Assessment | 30 |
|                                                                                                                                                                                         | Liquidity      and Capital Resources | 31 |
|                                                                                                                                                                                         | Results      of Operations | 33 |
|                                                                                                                                                                                         | New      Accounting Standards | 39 |
|                                                                                                                                                                                         | Critical      Accounting Policies | 41 |
|                                                                                                                                                                                         |   |   |
| ITEM      7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET    RISK                                                                                                                  | 43 |
|                                                                                                                                                                                         |   |   |
| ITEM      8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY      DATA                                                                                                         | 44 |
|                                                                                                                                                                                         |   |   |
| ITEM      9.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON      ACCOUNTING   AND      FINANCIAL DISCLOSURE                                          | 44 |
|                                                                                                                                                                                         |   |   |
| ITEM      9A.  CONTROLS AND PROCEDURES                                                                                                                                             | 44 |
|                                                                                                                                                                                         |   |   |
| ITEM      9B.  OTHER INFORMATION                                                                                                                                                   | 45 |
|                                                                                                                                                                                         |   |   |
|                                                                                                                                                                                         | PART      III  |   |
| ITEM      10.   DIRECTORS AND EXECUTIVE OFFICERS OF THE      REGISTRANT                                                                                                       | 46 |
|                                                                                                                                                                                         |   |   |
| ITEM      11.   EXECUTIVE COMPENSATION                                                                                                                                        | 48 |

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|                                                                                                                                                                                                                                                           |               |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|--------|
| ITEM      12.   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL      OWNERS                    AND      MANAGEMENT AND RELATED STOCKHOLDER MATTERS | 57                 |
|                                                                                                                                                                                                                                                           |               |   |
| ITEM      13.   CERTAIN RELATIONSHIPS AND RELATED      TRANSACTIONS                                                                                                                                                                             | 59                 |
|                                                                                                                                                                                                                                                           |               |   |
| ITEM      14.   PRINCIPAL ACCOUNTING FEES ANDSERVICES                                                                                                                                                                                           | 60                 |
|                                                                                                                                                                                                                                                           |               |   |
|                                                                                                                                                                                                                                                           | PART      IV  |   |
| ITEM      15.   EXHIBITS, FINANCIAL STATEMENT    SCHEDULES                                                                                                                                                                                      | 62                 |

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| • | EPC,      commissioning and handover of the ore-treatment  plant, |
|---------|-------------------------------------------------------------------|

| • | EPC,      commissioning and handover of the related infrastructure      facilities, |
|---------|-------------------------------------------------------------------------------------|

| • | EPC,      commissioning and handover of the concentrate storage and handling      facilities at the port of Jizan, which is approximately 460km from the      mine. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Primary      crushing, |
|---------|------------------------|

| • | Ore      storage, |
|---------|-------------------|

| • | SAG      milling and pebble crushing, |
|---------|---------------------------------------|

| • | Secondary      ball milling, |
|---------|------------------------------|

| • | Pre-flotation, |
|---------|----------------|

----

| • | Copper      and zinc flotation, |
|---------|---------------------------------|

| • | Concentrate      thickening, |
|---------|------------------------------|

| • | Tailings      filtration, |
|---------|---------------------------|

| • | Cyanide      leaching, |
|---------|------------------------|

| • | Reagent      handling, make-up and distribution, |
|---------|--------------------------------------------------|

| • | Tailings-dam      constructions, and |
|---------|--------------------------------------|

| • | Utilities      and related infrastructure. |
|---------|--------------------------------------------|

| • | Unloading      facilities, |
|---------|----------------------------|

| • | Concentrate      storage, and |
|---------|-------------------------------|

| • | Reclamation      and ship-loading facilities. |
|---------|-----------------------------------------------|

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|   | Average      Price               | Spot      Price as of                       |   | Percentage |   |
|--------|----------------------------------|---------------------------------------------|--------|------------|--------|
|   | For 2007-2009                    | 12/31/09                                    |   | Increase   |   |
| Gold   | $846.00      per ounce           | $1,087.00      per ounce                    |   |       | 28.49  | % |
| Silver | $      14.34 per ounce           | $      16.90  per ounce           |   |       | 17.85  | % |
| Copper | $  2.91      per pound | $  3.33  per      pound |   |       | 14.43  | % |
| Zinc   | $  1.02      per pound | $  1.17  per      pound |   |       | 14.71  | % |

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| Zone          | Proven      Reserves(Tonnes)(000’s) | Copper(%) | Zinc(%) | Gold (g/t) | Silver(g/t) |
|---------------|-------------------------------------------|-----------|---------|-----------------|-------------|
| Saadah        | 448                                       | 1.5       | 3.7     | 0.8             | 21.0        |
| Al      Houra | 29                                        | 0.8       | 3.8     | 0.7             | 21.0        |
| Moyeath       | -                                         | -         | -       | -               | -           |
| Total         | 477                                       | 1.4       | 3.7     | .8              | 21.0        |

| Zone          | Probable      Reserves(Tonnes)(000’s) | Copper(%) | Zinc(%) | Gold(g/t) | Silver(g/t) |
|---------------|---------------------------------------------|-----------|---------|-----------|-------------|
| Saadah        | 5,193                                       | 1.2       | 3.4     | 0.8       | 23.0        |
| Al      Houra | 1,894                                       | 0.9       | 3.8     | 1.2       | 39.0        |
| Moyeath       | 702                                         | 0.8       | 7.2     | 1.0       | 55.0        |
| Total         | 7,789                                       | 1.1       | 3.9     | 0.9       | 29.0        |

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| • | Speculation      in the press or investment community about, or actual changes in, our      executive team, strategic position, business, organizational structure,      operations, financial condition, financial reporting and results,      effectiveness of cost cutting efforts, prospects or extraordinary      transactions; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Announcements      of new products, services, technological innovations or acquisitions by      the Company or competitors; and |
|---------|---------------------------------------------------------------------------------------------------------------------------------|

| • | Quarterly      increases or decreases in revenue, gross margin or earnings, changes in      estimates by the investment community or guidance provided by the Company,      and variations between actual and estimated financial    results. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| • | Combining      product offerings and entering into new markets in which we are not      experienced; |
|---------|------------------------------------------------------------------------------------------------------|

| • | Convincing      customers and distributors that the transaction will not diminish client      service standards or business focus, preventing customers and distributors      from deferring purchasing decisions or switching to other suppliers (which      could result in our incurring additional obligations in order to address      customer uncertainty), and coordinating sales, marketing and distribution      efforts; |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Minimizing      the diversion of management attention from ongoing business      concerns; |
|---------|--------------------------------------------------------------------------------------------|

| • | Persuading      employees that business cultures are compatible, maintaining employee      morale and retaining key employees, engaging with employee works councils      representing an acquired company’s non-U.S. employees, integrating      employees into the Company, correctly estimating employee benefit costs      and implementing restructuringprograms; |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Coordinating      and combining administrative, manufacturing, and other operations,      subsidiaries, facilities and relationships with third parties in      accordance with local laws and other obligations while maintaining      adequate standards, controls andprocedures; |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Achieving      savings from supply chain integration;and |
|---------|----------------------------------------------------------|

| • | Managing      integration issues shortly after or pending the completion of other      independent transactions. |
|---------|------------------------------------------------------------------------------------------------------------------|

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| • | Ongoing      instability or changes in a country’s or region’s economic or political      conditions, including inflation, recession, interest rate fluctuations and      actual or anticipated military or political  conflicts; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Longer      accounts receivable cycles and financial instability among      customers; |
|---------|----------------------------------------------------------------------------------------|

| • | Trade      regulations and procedures and actions affecting production, pricing and      marketing of products; |
|---------|-----------------------------------------------------------------------------------------------------------------|

| • | Local      labor conditions andregulations; |
|---------|---------------------------------------------|

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| • | Geographically      dispersed workforce; |
|---------|------------------------------------------|

| • | Changes      in the regulatory or legalenvironment; |
|---------|-----------------------------------------------------|

| • | Differing      technology standards or customerrequirements; |
|---------|--------------------------------------------------------------|

| • | Import,      export or other business licensing requirements or requirements relating      to making foreign direct investments, which could affect our ability to      obtain favorable terms for labor and raw materials or lead to penalties or      restrictions; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Difficulties      associated with repatriating cash generated or held abroad in a      tax-efficient manner and changes in tax laws;  and |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------|

| • | Fluctuations      in freight costs and disruptions in the transportation and shipping      infrastructure at important geographic points of exit and entry for our      products and shipments. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 1.   | An      expansion of the discussion under “Business” of the Company’s principal      products and services and our principal  competitors, |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | An      expansion of the discussion in “Management’s Discussion and Analysis of      Financial Condition and Results of Operations” of the extent to which      changes in the Company’s petrochemical revenues were caused by changes in      the prices charged or changes in the volumes  sold, |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Expansions      of the Company disclosures regarding executive compensation to (i) expand      the narrative discussion of the Company’s executive compensation tables,      including expanded discussion of the objectives and base year selection      for the Company’s cash bonus plan, (ii) discuss any potential      change-in-control payment plans, and (iii) disclosure the compensation of      the Company’s directors, |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Include      as exhibits in its filings copies of certain organizational documents and      agreements of AMAK, |
|----------------|-----------------------------------------------------------------------------------------------------------------|

| 5.   | Address      the reasons why it was appropriate for the Company to include in the cost      of its investment in AMAK (i) the Company’s $2.4 million of accumulated      costs relating to the geophysical, geochemical and geologic work and      diamond core drilling performing in the Wadi Qatan and Jebel Harr, and      (ii) $3.7 million of costs the Company incurred in connection with the      organization of AMAK, and (iii) disclose how the Company determined that      the initial investment in AMAK was recorded at the lower of the cost or      market value of the assets transferred,and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | Address      why the Company used the equity method to account for its investment in      AMAK through August 2009, why it was appropriate to change to the cost      method of |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  Name                    | Age      as ofDecember 31, 2009 |  Title (Held OfficeSince)                          |
|-------------------------------|---------------------------------|---------------------------------------------------------|
| Nicholas      N. Carter       | 62                              |  President,      CEO, Chairman of the Board (2009) |
|  Mark      A. Williamson | 54                              | Vice      President – Marketing TOCCO (1996)      |
|  Connie      Cook        | 46                              | Chief      Accounting Officer (2008)                    |

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|                                        |   | NASDAQ |   |
|---------------------------------------------|--------|--------|--------|
|                                        |   | High   |   |   | Low |   |
| Fiscal      Year Ended December 31, 2009    |   |   |   |   |   |   |
| First Quarter ended March 31,      2009     |   | $      | 1.99   |   |   | $ | 0.60 |   |
| Second Quarter ended June 30,      2009     |   | $      | 3.64   |   |   | $ | 1.21 |   |
| Third Quarter ended September 30,      2009 |   | $      | 3.97   |   |   | $ | 2.68 |   |
| Fourth Quarter ended December 31,      2009 |   | $      | 3.45   |   |   | $ | 2.06 |   |
|                                        |   |   |   |   |   |   |   |   |
| Fiscal      Year Ended December 31, 2008    |   |   |   |
| First Quarter ended March 31,      2008     |   | $      | 8.00   |   |   | $ | 6.00 |   |
| Second Quarter ended June 30,      2008     |   | $      | 7.04   |   |   | $ | 4.50 |   |
| Third Quarter ended September 30,      2008 |   | $      | 5.76   |   |   | $ | 3.20 |   |
| Fourth Quarter ended December 31,      2008 |   | $      | 3.95   |   |   | $ | 0.41 |   |
|                                        |   |   |   |   |   |   |   |   |

|                                                       |   | 2009 |    |   |   | 2008 | *           |   |   | 2007 |    |   |   | 2006 |   |   |   | 2005 |   |
|------------------------------------------------------------|--------|------|---------|--------|--------|------|-------------|--------|--------|------|---------|--------|--------|------|--------|--------|--------|------|--------|
| Revenues                                                   |   | $    | 117,587 |   |   | $    | 154,630     |   |   | $    | 108,638 |   |   | $    | 98,502 |   |   | $    | 82,416 |   |
| Net      Income (Loss)                                     |   | $    | 6,627   |   |   | $    | (10,731     | )      |   | $    | 7,771   |   |   | $    | 7,875  |   |   | $    | 16,636 |   |
| Net      Income (Loss) Per Share-Diluted                   |   | $    | 0.28    |   |   | $    | (0.      46 | )      |   | $    | 0.33    |   |   | $    | 0.34   |   |   | $    | 0.73   |   |
| Total      Assets (at December 31)                         |   | $    | 90,487  |   |   | $    | 96,290      |   |   | $    | 84,221  |   |   | $    | 71,590 |   |   | $    | 66,974 |   |
| Notes      Payable (at December 31)                        |   | $    | 12      |   |   | $    | 12          |   |   | $    | 11,012  |   |   | $    | 11,013 |   |   | $    | 11,026 |   |
| Current      Portion of Long-Term Debt (at December 31)    |   | $    | 1,400   |   |   | $    | 4,920       |   |   | $    | 31      |   |   | $    | 489    |   |   | $    | 1,426  |   |
| Total      Long-Term Debt Obligations(at      December 31) |   | $    | 23,439  |   |   | $    | 23,557      |   |   | $    | 9,078   |   |   | $    | 5,108  |   |   | $    | 9,839  |   |

----

----

| • | Complete      the ore-treatment facility and related infrastructure under the NESMA      contract which includes commissioning of the plant for operational      start-up. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Complete      engineering, procurement, construction and commissioning of the      concentrate storage and handling facilities at the port of      Jizan. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Begin      underground mining activities to produce 700,000 tons per      year. |
|---------|---------------------------------------------------------------------------------|

| • | Complete      construction of the tailing-dam. |
|---------|------------------------------------------------|

| • | Negotiate      and enter into contracts for the transportation of copper and zinc      concentrate to the port of Jizan, for the transportation of gold and      silver to Jeddah, and for the transportation of tailings from the      ore-treatment plant to the tailing-damarea. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Negotiate      and enter into an agreement with an international smelter and gold      refinery. |
|---------|--------------------------------------------------------------------------------------------------|

----

|   | Liquidity      and Capital Resources |
|--------|--------------------------------------|

|                                             |   | 2009                |   |   |   | 2008   | *       |   |   | 2007   |    |
|--------------------------------------------------|--------|---------------------|--------|--------|--------|--------|---------|--------|--------|--------|---------|
| Net      cash provided by (used in)              |   | (in      thousands) |   |
| Operating      activities                        |   | $                   | 6,515  |   |   | $      | (5,979  | )      |   | $      | 9,470   |   |
| Investing      activities                        |   |                | (3,184 | )      |   |   | (15,421 | )      |   |   | (11,130 | ) |
| Financing      activities                        |   |                | (3,638 | )      |   |   | 19,369  |   |   |   | 3,511   |   |
| Increase      (decrease) in cash and equivalents |   | $                   | (307   | )      |   | $      | (2,031  | )      |   | $      | 1,851   |   |
| Cash      and cash equivalents                   |   | $                   | 2,452  |   |   | $      | 2,759   |   |   | $      | 4,790   |   |

| • | Trade      receivables increased approximately $510,000 (due to additional foreign      sales with longer payment terms) as compared to an increase of only      $58,000 in 2008; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Income      tax receivable increased by about $4,297,000 (due to carry-back of the      current year taxable loss) as compared to a decrease of $641,000 in      2008; |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Inventory      increased approximately $2,619,000 (due to increased volume and prices) as      compared to a decrease of about $441,000 (due to decreased prices but      increased volumes) in 2008; |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Accounts      payable and accrued liabilities decreased approximately $2,146,000 (due to      the payment of derivative related items) while in 2008 the same accounts      increased by about $2,750,000 (due to outstanding derivative related      items); |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Derivative      instrument deposits decreased $3,950,000 (due to return of previous margin      call deposits), as compared to an increase of $3,950,000 (due to the      payment of margin calls) in 2008; |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Other      liabilities increased $773,000 (due to funds received from outside parties      for capital projects), as compared to no change in  2008; |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Accrued      interest increased approximately $1,000 as compared to an increase of      about $62,000 in 2008 (due to increased long-term debt      balances); |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Notes      receivable decreased about $582,000 as compared to a decrease of $711,000      in 2008 (due to notes receivable being paid down in  2009); |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | Prepaid      expenses and other assets decreased approximately $59,000 (due to      expensing of prepaid assets) as compared to an increase of $151,000 (due      to an increase in prepaid catalyst and insurance) in 2008;    and |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Accrued      liabilities in Saudi Arabia decreased approximately $958,000 (due to the      payment of amounts owed to the previous President of the Company and      termination of some of the Saudi employees) while in 2008 there was a      increase of about $22,000. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                      |   | 2009                |    |   |   | 2008   | *       |   | Change |   |    | %Change |   |
|-------------------------------------------|--------|---------------------|---------|--------|--------|--------|---------|--------|--------|--------|---------|---------|--------|
|                                      |   | (in      thousands) |    |   |   |   |
| Petrochemical      Product Sales          |   | $                   | 109,179 |   |   | $      | 130,264 |   |   | $      | (21,085 | )       |   |   | (16.2 | %) |
| Transloading      Sales                   |   |                | 4,625   |   |   |   | 20,239  |   |   |   | (15,614 | )       |   |   | (77.1 | %) |
|  Processing                          |   |                | 3,783   |   |   |   | 4,127   |   |   |   | (344    | )       |   |   | ( 8.3 | %) |
| Gross      Revenue                        |   | $                   | 117,587 |   |   | $      | 154,630 |   |   | $      | (37,043 | )       |   |   | (24.0 | %) |
|                                      |   |                |    |   |   |   |    |   |   |   |    |    |   |   |   |   |
| Volume      of sales (thousand gallons)   |   |                | 49,909  |   |   |   | 46,311  |   |   |   | 3,598   |    |   |   | 7.8 | % |
|                                      |   |                |    |   |   |   |    |   |   |   |    |    |   |   |   |   |
| Cost      of Materials                    |   | $                   | 69,474  |   |   | $      | 131,665 |   |   | $      | (62,191 | )       |   |   | (47.2 | %) |
| Total      Operating Expense              |   |                | 26,214  |   |   |   | 27,562  |   |   |   | (1,348  | )       |   |   | (      4.9 | %) |
| Natural      Gas Expense                  |   |                | 4,572   |   |   |   | 7,310   |   |   |   | (2,738  | )       |   |   | (37.5 | %) |
| General      & Administrative Expense |   |                | 9,145   |   |   |   | 9,034   |   |   |   | 111     |    |   |   | 1.2 | % |
|                                      |   |                |    |   |   |   |    |   |   |   |    |    |   |   |   |   |
| Capital      Expenditures                 |   | $                   | 3,184   |   |   | $      | 15,031  |   |   | $      | (11,847 | )       |   |   | (78.8 | %) |

|                                      |   |                | 2008    | *      |   |   | 2007    |   |   | Change |   |   | %      Change |   |
|-------------------------------------------|--------|---------------------|---------|--------|--------|--------|---------|--------|--------|--------|--------|--------|---------------|--------|
|                                      |   | (in      thousands) |    |   |   |   |
| Petrochemical      Product Sales          |   | $                   | 130,264 |   |   | $      | 103,205 |   |   | $      | 27,059 |   |          |   | 26.2 | % |
| Transloading      Sales                   |   |                | 20,239  |   |   |   | -       |   |   |   | 20,239 |   |          |   | 100.0 | % |
| Processing                                |   |                | 4,127   |   |   |   | 5,433   |   |   |   | (1,306 | )      |          |   | (24.0 | %) |
| Gross      Revenue                        |   | $                   | 154,630 |   |   | $      | 108,638 |   |   |   | 45,992 |   |          |   | 42.3 | % |
|                                      |   |                |    |   |   |   |    |   |   |   |   |   |          |   |   |   |
| Volume      of sales (thousand gallons)   |   |                | 46,311  |   |   |   | 40,144  |   |   |   | 6,167  |   |          |   | 15.4 | % |
|                                      |   |                |    |   |   |   |    |   |   |   |   |   |          |   |   |   |
| Cost      of Materials                    |   | $                   | 131,665 |   |   | $      | 66,989  |   |   | $      | 64,676 |   |          |   | 96.5 | % |
| Total      Operating Expense              |   |                | 27,562  |   |   |   | 22,696  |   |   |   | 4,866  |   |          |   | 21.4 | % |
| Natural      Gas Expense                  |   |                | 7,310   |   |   |   | 6,109   |   |   |   | 1,201  |   |          |   | 19.7 | % |
| General      & Administrative Expense |   |                | 9,034   |   |   | $      | 7,619   |   |   |   | 1,415  |   |          |   | 18.6 | % |
|                                      |   |                |    |   |   |   |    |   |   |   |   |   |          |   |   |   |
| Capital      Expenditures                 |   | $                   | 15,031  |   |   | $      | 10,799  |   |   | $      | 4,232  |   |          |   | 39.2 | % |

----

----

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|                                      |   | 2009                |   |   | 2008   |    |   | Change |   |    | %Change |   |
|-------------------------------------------|--------|---------------------|--------|--------|--------|---------|--------|--------|--------|---------|---------|--------|
| Petrochemical      Company                |   | (in      thousands) |   |   |   |    |
| General      & Administrative Expense |   |  $             | 7,200  |   |   |  $ | 6,636  |   |   |  $ | 564     |   |   |   | 8.5 | % |

----

|                                      |   | 2008                |   |   | 2007   |   |   | Change |   |   | %      Change |   |
|-------------------------------------------|--------|---------------------|--------|--------|--------|--------|--------|--------|--------|--------|---------------|--------|
| Petrochemical      Company                |   | (in      thousands) |   |   |   |   |
| General      & Administrative Expense |   | $                   | 6,636  |   |   | $      | 5,441  |   |   | $      | 1,195         |   |   |   | 22.0 | % |

| (in      thousands)             |   | 2009 |   |   | 2008   |   |   | Change |   |   | %      Change |   |
|---------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|---------------|--------|
| General      corporate expenses |   | $    | 1,945  |   |   | $      | 2,398  |   |   | $      | (453          | )      |   |   | 18.9 | % |

| (in      thousands)             |   | 2008 |   |   | 2007   |   |   | Change |   |   | %      Change |   |
|---------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|---------------|--------|
| General      corporate expenses |   | $    | 2,398  |   |   | $      | 2,178  |   |   | $      | 220           |   |   |   | 10.1 | % |

----

|                            |   | Payments      due by period |       |
|---------------------------------|--------|-----------------------------|------------|
| Contractual Obligations         |   | Total                       |       |   | Less      than1 year |   |   | 1-3 years |   |   | 3-5 years |   |   | More      than 5 years |   |
| Long-Term      Debt Obligations |   | $                           | 24,839,488 |   |   | $ | 1,400,000 |   |   | $ | 15,289,488 |   |   | $ | 2,800,000 |   |   | $ | 5,350,000 |   |
| Operating      Leases           |   |                        | 1,380,122  |   |   |   | 391,248 |   |   |   | 709,326 |   |   |   | 279,548 |   |   |   | - |   |
|                            |   |                        |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                           |   | $                           | 26,219,610 |   |   | $ | 1,791,248 |   |   | $ | 15,998,814 |   |   | $ | 3,079,548 |   |   | $ | 5,350,000 |   |

----

----

----

----

----

----

----

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| Name;      Current Positions Held                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Age            | Director      since | Term      expires at Annual meeting in |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|---------------------|----------------------------------------|
|  Hatem      El      Khalidi                                                                           Co-founder      and retired President & CEO of the Company                                               |  85       |  1968          |  2010                             |
|  Nicholas      N. Carter ……………………………………………….President,      Chief Executive Officer of the Company since July 2009, President of the      Petrochemical Company since 1987, Member of AMAK Board                                                                                                                                                                                                                                                                                              |  62  |  2004          |  2011                             |
|  Robert      E. Kennedy ……………………………………………….Chairman      of the Audit and Compensation Committees; Member of Nominating Committee      and AMAK Board                                                                                                                                                                                                                                                                                                                                         |  65       |  2007          |  2012                             |
|  Ghazi      Sultan                                                                           Chairman      of the Nominating Committee; Member of  Compensation and Audit      Committees and AMAK Board |  73       |  1993          |  2010                             |
| Allen      P.      McKee                                                                           Member      of the Audit, Compensation and Nominating Committees      and AMAK Board                            |  68       |  2009          |  2012                             |
| Mohammed      Al      Omair                                                                           Member      of  Audit, Compensation and NominatingCommittees                                            |  66       |  2007          |  2011                             |
| Charles      W. Goehringer,      Jr.                                                                           General      Counsel                                                                                     |  51       |  2007          |  2011                             |

----

----

| Name                    | Positions                                                                             | Age | Appointed |
|-------------------------|---------------------------------------------------------------------------------------|-----|-----------|
| Nicholas      N. Carter | President,      Chief Executive Officer and Director/President - TOCCO                | 62  | 2009/1987 |
| Mark      Williamson    | Vice      President of Marketing - TOCCO                                              | 54  | 1996      |
| Connie      Cook        | Chief      Accounting Officer, Secretary, Treasurer/Secretary, Treasurer -      TOCCO | 46  | 2008/2004 |

----

----

----

----

| ·   | Managed      successful completion of the derivative situation which occurred in      2008; |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | Entered      into a compromise agreement with Saudi shareholders settling the capital      structure of AMAK; |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | Produced      an EBITDA from continuing operations of approximately $15.0 million for      2009 compared to $12.5 million for2005; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Managed      a 12% increase in total volume sold for 2009 during a global/US recession      period, when most US companies volumes were  down; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Utilized      20% of the new/additional capacity that was added in the fourth quarter of      2008; |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | Established      an International Sales and Marketing office in Madrid Spain for continued      development of International markets and opportunities, along with      addressing the EU REACH Program; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Added      an additional Account Manager to assume domestic responsibilities vacated      by GM to open International S&M office;and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Established      a Risk Management Policy and ProceduresManual. |
|--------------------|-----------------------------------------------------------------|

----

| Name      andPrincipal Position                                                                                                                           | Year   |   | Salary($) |    |   | Bonus($)(1) |   |   | RestrictedStockAward(s)($) |   |   | Option      Award(s)($)(2) |   |   | All      OtherCompensation($) (3)(4)(5) |    |   | Total      ($) |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|---------|--------|-------------|--------|--------|----------------------------|--------|--------|----------------------------|--------|--------|-----------------------------------------|---------|--------|----------------|--------|
| Hatem El KhalidiPresident      and ChiefExecutive      Officer until June 30, 2009, Director                                                              | 2009   |   | $         | 36,000  |   |        | $      | 31,500 |                       |   |   | --                         |   |   | $                                       | 186,288 |   |           | $      | 40,000 |   |   | $ | 293,788 |   |
| 2008                                                                                                                                                      |   | $      | 72,000    |    |   |        | --     |   |                       |   | --     |                       |   |   | --                                      |    |   | $              | 8,000  |   |   | $ | 80,000 |   |
| 2007                                                                                                                                                      |   | $      | 72,000    |    |   |        | --     |   |                       |   | --     |                       |   |   | --                                      |    |   | $              | 8,000  |   |   | $ | 80,000 |   |
| Nicholas N. Carter President and      ChiefExecutive      Officer since July 1, 2009; previouslyExecutive      Vice President and Chief Operating Officer | 2009   |   | $         | 234,837 |   |        | $      | 42,552 |                       |   |   | --                         |   |   |                                    | --      |   |           | $      | 14,090 |   |   | $ | 291,479 |   |
| 2008                                                                                                                                                      |   | $      | 209,918   |    |   | $           | 78,665 |   |                       | $      | 99,800 |                       |   |   | --                                      |    |   | $              | 12,595 |   |   | $ | 400,978 |   |
| 2007                                                                                                                                                      |   | $      | 172,059   |    |   | $           | 96,506 |   |                       | $      | 66,000 |                       |   |   | --                                      |    |   | $              | 10,324 |   |   | $ | 344,889 |   |
|  Connie J. CookChief      Accounting Officer                                                                                                         | 2009   |   | $         | 142,208 |   |        | $      | 32,715 |                       |   |   | --                         |   |   |                                    | --      |   |           | $      | 8,533 |   |   | $ | 183,456 |   |
| 2008                                                                                                                                                      |   | $      | 133,009   |    |   | $           | 51,143 |   |                       | $      | 49,900 |                       |   |   | --                                      |    |   | $              | 7,981  |   |   | $ | 242,033 |   |
| 2007                                                                                                                                                      |   | $      | 108,500   |    |   | $           | 70,085 |   |                       | $      | 33,000 |                       |   |   | --                                      |    |   | $              | 6,510  |   |   | $ | 218,095 |   |
| Mark D. WilliamsonVice      President of Marketing, Petrochemical Company                                                                                 | 2009   |   | $         | 227,500 |   |        | $      | 32,652 |                       |   |   | --                         |   |   |                                    | --      |   |           | $      | 13,650 |   |   | $ | 273,802 |   |
| 2008                                                                                                                                                      |   | $      | 240,705   |    |   | $           | 51,143 |   |                       | $      | 49,900 |                       |   |   | --                                      |    |   | $              | 14,442 |   |   | $ | 356,190 |   |
| 2007                                                                                                                                                      |   | $      | 190,393   |    |   | $           | 70,023 |   |                       |   | --     |                       |   |   | --                                      |    |   | $              | 11,424 |   |   | $ | 271,840 |   |

----

| Name      andPrincipal Position                                 | Year   |   | Salary($) |    |   | Bonus($)(1) |   |   | RestrictedStockAward(s)($) |   |   | Option      Award(s)($)(2) |   |   | All      OtherCompensation($) (3)(4)(5) |   |   | Total      ($) |   |
|-----------------------------------------------------------------|--------|--------|-----------|---------|--------|-------------|--------|--------|----------------------------|--------|--------|----------------------------|--------|--------|-----------------------------------------|--------|--------|----------------|--------|
| Gerardo Maldonado,Account Representative,PetrochemicalCompany   | 2009   |   | $         | 192,543 |   |        | $      | 24,437 |                       |   |   | --                         |   |   |                                    | --     |   |           | $      | 11,553 |   |   | $ | 228,533 |   |
| 2008                                                            |   | $      | 134,358   |    |   | $           | 14,640 |   |                       |   | --     |                       |   |   | --                                      |   |   | $              | 10,749 |   |   | $ | 159,747 |   |
| 2007                                                            |   | $      | 142,443   |    |   | $           | 24,327 |   |                       |   | --     |                       |   |   | --                                      |   |   | $              | 8,546  |   |   | $ | 175,316 |   |
| Marvin KaufmanManager      ofManufacturing,PetrochemicalCompany | 2009   |   | $         | 130,532 |   |        | $      | 21,910 |                       |   |   | --                         |   |   |                                    | --     |   |           | $      | 7,832 |   |   | $ | 160,274 |   |
| 2008                                                            |   | $      | 122,603   |    |   | $           | 13,110 |   |                       |   | --     |                       |   |   | --                                      |   |   | $              | 7,356  |   |   | $ | 143,069 |   |
| 2007                                                            |   | $      | 112,534   |    |   | $           | 21,526 |   |                       |   | --     |                       |   |   | --                                      |   |   | $              | 6,752  |   |   | $ | 140,812 |   |

| (1) | Includes      $31,500, $0 and $0 in retirement bonus compensation for the fiscal years      ended December 31, 2009, 2008, and 2007, respectively, that was deferred      at the election of Mr. El Khalidi.  All present deferred      compensation owing to Mr. El Khalidi aggregating $31,500 is considered,      and future deferred compensation owing to Mr. El Khalidi, if any, will be      considered payable to Mr. El Khalidi ondemand. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Reflects      the dollar amount recognized by the Company for financial statement      reporting purposes relating to optionsawards. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes      $4,000, $8,000, and $8,000 in termination benefits for each of the fiscal      years ended December 31, 2009, 2008, and 2007, respectively, that was      accrued for Mr. El Khalidi in accordance with Saudi Arabian employment      laws. The total amount of accrued termination benefits due to Mr. El      Khalidi as of December 31, 2009, was$42,878. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Includes      $36,000, $0, and $0 in accrued retirement benefits for each of the fiscal      years ended December 31, 2009, 2008, and 2007, respectively, that was      deferred at the election of Mr. El Khalidi.  The total amount of      accrued retirement benefits due to Mr. El Khalidi as of December 31, 2009,      was $36,000. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Includes      amounts as shown for Mr. Carter, Ms. Cook, and Mr. Williamson that were      contributed on the employee’s behalf into the Company’s 401(k)      plan. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                   |                 | Estimated      Future Payouts Under Non-Equity Incentive Plan Awards | Estimated      Future Payouts under Equity Incentive Plan Awards |       |         |      |       |                                                                                |   |                                                      |    |   |                                  |   |
|----------------------------------------|----------------------|----------------------------------------------------------------------|------------------------------------------------------------------|------------|--------------|-----------|------------|-------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|---------|--------|---------------------------------------|--------|
| Name                                   | GrantDate            | Threshold($)                                                         | Target($)                                                        | Maximum($) | Threshold(#) | Target(#) | Maximum(#) | All      Other Stock Awards:  Number of Shares of Stock or Units (#) |   | All      Other Options Awards: Number of Securities(#)(1) |    |   | Exercise      Price of Options ($/sh) |   |   | Closing      Market Price on Date of Option Grant ($/sh) |   | Grant      Date Fair Value of Stock Awards |
| Hatem      El      Khalidi        | 07/02/09             |                                                                 |                                                             |       |         |      |       |                                                                                |   |                                                      | 200,000 |   |                                  | $      | 3.40 |   |   | $ | 3.40 |   |   |
|        Hatem      El Khalidi |        07/02/09 |                                                                 |                                                             |       |         |      |       |                                                                                |   |                                                      | 200,000 |   |                                  | $      | 3.40 |   |   | $ | 3.40 |   |   |

| (1) | Represents      conditional stock option grants made on July 2, 2009 as follows: (a) an      option to purchase 200,000 shares of the Company’s common stock with an      exercise price equal to the closing sale price of such a share as reported      on the Nasdaq National Market System on July 2, 2009, provided that said      option may not be exercised until such time as the first shipment of ore      from the Al Masane mining project is transported for commercial sale by      AMAK, and further that said option shall terminate and be immediately      forfeited if not exercised on or before June 30, 2012; and (b) an option      to purchase 200,000 shares of the Company’s common stock with an exercise      price equal to the closing sale price of such a share as reported on the      Nasdaq Stock Market      on July 2, 2009, provided that said option may not be exercised until such      time as the Company receives its first cash dividend distribution from      AMAK, and further that said option shall terminate and be immediately      forfeited if not exercised on or before June 30,    2019. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                 |   | Option      awards                                                           | Stock      awards |
|----------------------|--------|------------------------------------------------------------------------------|-------------------|
| Name                 |   | Number      of Securities Underlying Unexercised Options(#)      Exercisable |              |   | Number      of Securities Underlying Unexercised Options (#)      Unexercisable |   |   | Equity      incentive plan awards: number of securities underlying unexercised      unearned options(#) |   |   | Option      exercise price($) |   | Option      Expiration date | Number      of Shares or units of stock that have not vested(#) | Market      value of shares or unites of stock that have not vested(#) | Equity      incentive plan awards: number of unearned shares, units or other rights      that have not vested (#) | Equity      incentive plan awards: market or payout value of unearned shares, units or      other rights that have not vested($) |
| HatemEl      Khalidi |   |                                                                         | --                |   |   |   | 200,000 |   |   |   | -- |   |   | $ | 3.40 |   | 06/30/12 |   |   |   |   |
| HatemEl      Khalidi |   |                                                                         | --                |   |   |   | 200,000 |   |   |   | -- |   |   | $ | 3.40 |   | 06/30/19 |   |   |   |   |

| Name                                         |   | Fees      Earned orPaid      in Cash($)(1) |     |   | Stock      Awards($)(2) |   |     | OptionAwards($)(3) |   |   | Total($) |   |
|----------------------------------------------|--------|--------------------------------------------|----------|--------|-------------------------|--------|----------|--------------------|--------|--------|----------|--------|
|                                         |   |                                       |     |   |                    |   |     |               |   |   |     |   |
| Robert      Kennedy                          |   | $                                          | 74,000   |   |                    | $      | 10,200   |               |   | $      | 9,730    |   |   | $ | 93,930 |   |
| Ghazi      Sultan                            |   |                                       | 10,000   |   |                    |   | 10,200   |               |   |   | 9,730    |   |   |   | 29,930 |   |
| Mohammed      Al Omair                       |   |                                       | 25,000   |   |                    |   | 10,200   |               |   |   | 9,730    |   |   |   | 44,930 |   |
| Ibrahim      Al-Moneef (resigned April 2009) |   |                                       | --  |   |                    |   | --  |               |   |   | 9,730    |   |   |   | 9,730 |   |
| Charles      Goehringer, Jr.                 |   |                                       | 10,000   |   |                    |   | 10,200   |               |   |   | 9,730    |   |   |   | 29,930 |   |
| Allen      McKee (appointed April 2009)      |   |                                       | 2,500    |   |                    |   | --  |               |   |   | --  |   |   |   | 2,500 |   |

| (1) | Includes      committee fees for 2008 in the amount of $70,000, subsidiary board fees      for 2008 in the amount of $5,000, subsidiary board fees for 2009 in the      amount of $36,000 and per diem amounts for 2009 in the amount of      $10,500. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents      3,000 shares of restricted stock granted to each non-employee director for      2008 Board service at $3.40 per share based upon the closing price of the      Company’s common stock on the grant date of September 1,    2009. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Represents      7,000 shares of stock options granted to each non-employee director for      2008 Board service at an exercise price of $1.39 per share based upon the      closing price of the Company’s common stock on the grant date of January      2, 2009. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|  Name      and AddressOf      Beneficial Owner                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | Amount      and Nature ofBeneficialOwnership      (1)(2) |      |   | Percentof      Class |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|-----------|--------|----------------------|--------|
|  Fahad      Mohammed Saleh Al      Athel                                                                               c/o      Saudi FalP.      O. Box 4900Riyadh,      Saudi Arabia  11412           |   |                                                     | 3,898,851 |   |                 |   | 16.4 | % |
|  Wellington      Trust Company,      NA                                                                               Wellington      Management Company, LP75      State StreetBoston,      MA  02109 |   |                                                     | 1,808,243 |   |                 |   | 7.6 | % |
|  Mohammad      Salem ben      Mahfouz                                                                               c/o      National Commercial BankJeddah,      Saudi Arabia                                   |   |                                                     | 1,500,000 |   |                 |   | 6.3 | % |
|  Estate      of Harb S. Al      Zuhair                                                                               P.O.      Box 3750Riyadh,      Saudi Arabia                                                 |   |                                                     | 1,423,750 |   |                 |   | 6.0 | % |
|  Prince      Talal Bin Abdul      Aziz                                                                               P.      O. Box 930Riyadh,      Saudi Arabia                                                 |   |                                                     | 1,272,680 |   |                 |   | 5.4 | % |

|  (1)   |  Unless      otherwise indicated, to the knowledge of the Company, all shares are owned      directly and the owner has sole voting and investment    power. |
|-----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Wellington      Trust Company, NA and Wellington Management Company, LP filed with the      Commission on February 12, 2010, reporting that they or certain of their      affiliates beneficially owned an aggregate of 1,808,423 shares and that      they had shared voting power and shared dispositive power with respect to      those shares. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  Name      of Beneficial Owner                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Amount      and Nature ofBeneficialOwnership      (1) |    |   | Percentof      Class |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|---------|--------|----------------------|--------|
|  Hatem      El      Khalidi                                                                                           |   |                                                  | 60,000  | (2)    |                 |   | 0.3 | % |
|  Ghazi      Sultan                                                                                                    |   |                                                  | 10,000  | (3)    |                 |   | 0.0 | % |
|  Nicholas      N.      Carter                                                                                         |   |                                                  | 220,775 |   |                 |   | 0.9 | % |
|  Charles      W. Goehringer,      Jr.                                                                                 |   |                                                  | 42,967  | (3)    |                 |   | 0.2 | % |

----

|  Name      of Beneficial Owner                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | Amount      and Nature ofBeneficialOwnership      (1) |    |   | Percentof      Class |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|---------|--------|----------------------|--------|
|  Robert      E.      Kennedy                                                                                 |   |                                                  | 20,000  | (3)    |                 |   | 0.1 | % |
|  Mohammed      O. Al      Omair                                                                                        |   |                                                  | 11,667  | (3)    |                 |   | 0.0 | % |
|  Allen      P.      McKee                                                                                         |   |                                                  | 20,000  |   |                 |   | 0.1 | % |
|  Connie      J.      Cook                                                                                         |   |                                                  | 32,850  |   |                 |   | 0.1 | % |
|  Mark      Williamson                                                                                                  |   |                                                  | 20,000  |   |                 |   | 0.1 | % |
|  All      directors and executive officers as a group (9 persons)                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                  | 438,259 | (4)    |                 |   | 1.8 | % |

|  (1) |  Unless      otherwise indicated, to the knowledge of the Company, all shares are owned      directly and the owner has sole voting and investment      power.  Includes shares of restricted  stock. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Excludes      400,000 shares which Mr. El Khalidi has the right to acquire through the      exercise of contingent stock options for which the contingencies were not      met at December 31, 2009.  Also excludes 385,000 shares owned by      Ingrid El Khalidi, Mr. El Khalidi’s wife, and 443,000 shares owned by      relatives of Hatem El Khalidi. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes      7,000 shares which these directors have the right to acquire through the      exercise of presently exercisable stockoptions. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Includes      28,000 shares which certain directors and executive officers have the      right to acquire through the exercise of stock options or other rights      exercisable presently or within 60 days. Excludes 385,000 shares owned by      Ingrid El Khalidi, the wife of Hatem El Khalidi, and 443,000 shares owned      by relatives of Hatem El Khalidi. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                    |   | 2009 |    |   | 2008   |   |
|-------------------------|--------|------|---------|--------|--------|--------|
| Audit      Fees         |   | $    | 258,477 |   |   | $      | 335,173 |   |
| Audit-Related      Fees |   | $    | 0       |   |   | $      | 0 |   |
| Tax      Fees           |   | $    | 41,884  |   |   | $      | 33,545 |   |
| All      Other Fees *   |   | $    | 45,232  |   |   | $      | 0 |   |

----

|   | Reports      of Independent Registered Public Accounting  Firm. |
|--------|-----------------------------------------------------------------|

|   | Consolidated      Balance Sheets dated December 31, 2009 and2008. |
|--------|-------------------------------------------------------------------|

|   | Consolidated      Statements of Operations for the three years ended December 31,      2009. |
|--------|----------------------------------------------------------------------------------------------|

|   | Consolidated      Statement of Stockholders’ Equity for the three years ended December 31,      2009. |
|--------|-------------------------------------------------------------------------------------------------------------|

|   | Consolidated      Statements of Cash Flows for the three years ended December 31,      2009. |
|--------|----------------------------------------------------------------------------------------------|

|   | Notes      to Consolidated FinancialStatements. |
|--------|-------------------------------------------------|

|   | Schedule      II -- Valuation and Qualifying Accounts for the three years ended December      31, 2009. |
|--------|---------------------------------------------------------------------------------------------------------|

| ExhibitNumber | Description                                                                                                                                                                                                                                                                                                                                        |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3(a)          | - Certificate      of Incorporation of the Company as amended through the Certificate of      Amendment filed with the Delaware Secretary of State on July 19, 2000      (incorporated by reference to Exhibit 3(a) to the Company’s Annual Report      on Form 10-K for the year ended December 31, 2000 (File No.      0-6247))  |
| 3(b)          | - Restated      Bylaws of the Company dated April 26, 2007 (incorporated by reference to      Item 5.03 to the Company’s Form 8-K dated April 26, 2007 (File No.      0-6247))                                                                                                                                                     |
| 10(a)         | - Loan      Agreement dated January 24, 1979 between the Company, National Mining      Company and the Government of Saudi Arabia (incorporated      by reference to Exhibit 10(b) to the Company’s Annual Report on Form 10-K      for the year ended December 31, 1999 (File No. 0-6247))                                   |

----

|        ExhibitNumber |         Description                                                                                                                                                                                                                                                                                                                                                                     |
|---------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10(b)                     | - Mining      Lease Agreement effective May 22, 1993 by and between the Ministry of      Petroleum and Mineral Resources and the Company (incorporated      by reference to Exhibit 10(c) to the Company’s Annual Report on Form 10-K      for the year ended December 31, 1999 (File No. 0-6247))                                                                           |
| 10(c)                     | - Equipment      Lease Agreement dated November 14, 2003, between Silsbee Trading and      Transportation Corp. and South Hampton Refining Company (incorporated by      reference to Exhibit 10(o) to the Company’s Annual Report on Form 10-K for      the year ended December 31, 2003 (File No. 0-6247))                                                                      |
| 10(d)                     | - Addendum      to Equipment Lease Agreement dated August 1, 2004, between Silsbee Trading      and Transportation Corp. and South Hampton Refining Company (incorporated      by reference to Exhibit 10(q) to the Company’s Quarterly Report on Form      10-Q for the quarter ended September 30, 2004 (File No.      0-6247))                                                 |
| 10(e)                     | - Partnership      Agreement dated August 6, 2006 between Arabian American Development      Company, Thamarat Najran Company, Qasr Al-Ma’adin Corporation, and Durrat      Al-Masani’ Corporation (incorporated by reference to Exhibit 10(i) to the      Company’s Quarterly Report on Form 10-Q/A for the quarter ended September      30, 2006 (file No. 0-6247))  |
| 10(f)                     | - Financial      Legal Service and Advice Agreement dated August 5, 2006 between Arabian      American Development Company, Nassir Ali Kadasa, and Dr. Ibrahim      Al-Mounif.  (incorporated by reference to Exhibit 10(j) to the      Company’s Quarterly Report on Form 10-Q for the quarter ended September      30, 2006 (file No. 0-6247))                        |
| 10(g)*                    | - Retirement      Awards Program dated January 15, 2008 between Arabian American Development      Company and Hatem El Khalidi (incorporated by reference to Exhibit 10(h)      to the Company’s Quarterly Report on Form 10-Q for the quarter ended March      31, 2008 (file No. 001-33926))                                                                                    |
| 10(h)*                    | - Stock      Option Plan of Arabian American Development Company for Key Employees      adopted April 7, 2008 (incorporated by reference to Exhibit A to the      Company’s Form DEF 14A filed April 30, 2008 (file No.      001-33926))                                                                                                                                          |
| 10(i)*                    | - Arabian      American Development Company Non-Employee Director Stock Option Plan      adopted April 7, 2008 (incorporated by reference to Exhibit B to the      Company’s Form DEF 14A filed April 30, 2008 (file No.      001-33926))                                                                                                                                         |

----

| 10(j) | - Master      Lease Agreement dated February 3, 2009, between Silsbee Trading and      Transportation Corp. and South Hampton Resources, Inc. (incorporated by      reference to Exhibit 10(j) to the Company’s Quarterly Report on Form 10-Q      for the quarter ended March 31, 2009 (file No. 001-33926))  |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10(k) | - Memorandum      of Understanding relating to formation of AMAK, dated May 21,      2006.                                                                                                                                                                                                                           |
| 10(l) | - Memorandum      of Understanding relating to formation of AMAK, dated June 10,      2006.                                                                                                                                                                                                                          |
| 10(m) | - Articles      of Association of Al Masane Al Kobra Mining Company, dated July 10,      2006.                                                                                                                                                                                                                       |
| 10(n) | - Bylaws      of Al Masane Al Kobra Mining Company                                                                                                                                                                                                                                                                   |
| 10(o) | - Letter      Agreement dated August 5, 2009, between Arabian American Development      Company and the other Al Masane Al Kobra Company shareholders named      therein (incorporated by reference to Exhibit 10.1 to the Company’s Form      8-K filed on August 27, 2009 (file No. 001-33926))              |
| 14    | - Code      of Ethics for Senior Financial Officers (incorporated by reference to      Exhibit 14 to the Company’s Annual Report on Form 10-K for the year ended      December 31, 2003 (File No. 0-6247))                                                                                                     |
| 16    | - Letter      re change in certifying accountant (incorporated by reference to Exhibit      16 to the Company’s Current Report on Form 8-K/A dated January 31, 2003      (File No. 0-6247))                                                                                                                    |
| 21    | - Subsidiaries                                                                                                                                                                                                                                                                                                       |
| 23.1  | - Consent      of Independent Registered Public Accounting Firm                                                                                                                                                                                                                                                      |
| 24    | - Power      of Attorney (set forth on the signature page hereto).                                                                                                                                                                                                                                                   |
| 31.1  | - Certification      of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002                                                                                                                                                                                                       |
| 31.2  | - Certification      of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002                                                                                                                                                                                                       |
| 32.1  | - Certification      of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                        |
| 32.2  | - Certification      of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                        |

----

|   | (b) | No      reports on Form 8-K were filed during the last quarter of the period      covered by this Report. |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

----

----

| Signature                                               | Title                                                                                   |
|---------------------------------------------------------|-----------------------------------------------------------------------------------------|
| /s/ Nicholas CarterNicholas      Carter                 | President,      Chief Executive Officer and Director (principal executive      officer) |
| /s/ Connie CookConnie      Cook                         | Chief      Accounting Officer(principal      financial and accounting officer)          |
|  Hatem      El Khalidi                             |  Director                                                                          |
| /s/ Charles Goehringer, Jr.Charles      Goehringer, Jr. | Director                                                                                |
| /s/ Robert KennedyRobert      Kennedy                   | Director                                                                                |
| /s/ Ghazi SultanGhazi      Sultan                       |         Director                                |
| /s/ Allen McKeeAllen      McKee                         |     Director                                                        |
| /s/ Mohammed Al OmairMohammed      Al Omair             |     Director                                                        |

----

| INDEX      TO FINANCIAL STATEMENTS                                                                                             | Page   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                           |   |
| Report      of Independent Registered Public Accounting Firm                                                                   | F-1    |
|                                                                                                                           |   |
| Report      of Independent Registered Public Accounting Firm on Internal  Control      Over Financial Reporting      | F-2    |
|                                                                                                                           |   |
| Consolidated      Balance Sheets at December 31, 2009 and 2008                                                                 | F-4    |
|                                                                                                                           |   |
| Consolidated      Statements of Operations For the Years Ended  December      31, 2009, 2008 and 2007                | F-6    |
|                                                                                                                           |   |
| Consolidated      Statement of Stockholders’ Equity For the Years Ended  December      31, 2009, 2008 and 2007 | F-7    |
|                                                                                                                           |   |
| Consolidated      Statements of Cash Flows For the Years Ended  December      31, 2009, 2008 and 2007                | F-8    |
|                                                                                                                           |   |
| Notes      to Consolidated Financial Statements                                                                                | F-10   |
|                                                                                                                           |   |
|  INDEX      TO FINANCIAL STATEMENT SCHEDULES                                                                              |   |
|                                                                                                                           |   |
| Schedule      II – Valuation and Qualifying Accounts For the Three Years      Ended  December      31, 2009    | F-38   |

----

----

----

----

|                                                                                                                                           |   | December 31, |        |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-------------|
|                                                                                                                                           |   | 2009         |        |   | 2008 |   |
|                                                                                                                                           |   |         |        |   | (restated) |   |
| ASSETS                                                                                                                                         |   |         |        |   |   |   |
| CURRENT      ASSETS                                                                                                                            |   |         |        |   |   |   |
|   Cash      and cash equivalents                                                                                                     |   | $            | 2,451,614   |   |   | $ | 2,759,236 |   |
|    Trade      Receivables, net of allowance for doubtful accounts of      $126,500 and $500,000, respectively              |   |         | 12,302,955  |   |   |   | 11,904,026 |   |
|    Current      portion of notes receivable, net of discount of $16,109 and      $53,628,  respectively (Note 6) |   |         | 372,387     |   |   |   | 528,549 |   |
|    Derivative      instrument deposits (Note 20)                                                                                |   |         | --          |   |   |   | 3,950,000 |   |
|    Prepaid      expenses and other assets                                                                                       |   |         | 739,989     |   |   |   | 799,342 |   |
|    Inventories      (Note 5)                                                                                                    |   |         | 5,065,169   |   |   |   | 2,446,200 |   |
|    Deferred      income taxes (Note 15)                                                                                         |   |         | 640,057     |   |   |   | 8,785,043 |   |
|    Taxes      receivable (Note 15)                                                                                              |   |         | 4,726,708   |   |   |   | 429,626 |   |
|                                                                                                                                           |   |         |        |   |   |   |   |   |
|           Total      current assets                                                          |   |         | 26,298,879  |   |   |   | 31,602,022 |   |
|                                                                                                                                           |   |         |        |   |   |   |   |   |
|   PLANT,      PIPELINE, AND EQUIPMENT – AT COST                                                                                |   |         | 50,082,441  |   |   |   | 47,184,865 |   |
|     LESS      ACCUMULATED DEPRECIATION                                                                                     |   |         | (17,674,938 | ) |   |   | (14,649,791 | ) |
|                                                                                                                                           |   |         |        |   |   |   |   |   |
|   PLANT,      PIPELINE, AND EQUIPMENT, NET (Note 7)                                                                                  |   |         | 32,407,503  |   |   |   | 32,535,074 |   |
|                                                                                                                                           |   |         |        |   |   |   |   |   |
|   INVESTMENT      IN AMAK (Note 8)                                                                                                   |   |         | 31,146,157  |   |   |   | 31,146,157 |   |
|   MINERAL      PROPERTIES IN THE UNITED STATES (Note 9)                                                                              |   |         | 588,311     |   |   |   | 588,311 |   |
|    NOTES      RECEIVABLE, net of discount of $684 and $16,793,      respectively, net of current portion (Note 6)          |   |         | 35,001      |   |   |   | 407,388 |   |
|   OTHER      ASSETS                                                                                                                  |   |         | 10,938      |   |   |   | 10,938 |   |
|                                                                                                                                           |   |         |        |   |   |   |   |   |
| TOTAL      ASSETS                                                                                                                              |   | $            | 90,486,789  |   |   | $ | 96,289,890 |   |

----

|                                                                                                                                                                                                                      |   | December 31, |       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|------------|
|                                                                                                                                                                                                                      |   | 2009         |       |   | 2008 |   |
|                                                                                                                                                                                                                      |   |         |       |   | (restated) |   |
|  LIABILITIES                                                                                                                                                                                                         |   |         |       |   |   |   |
|   CURRENT      LIABILITIES                                                                                                                                                                                      |   |         |       |   |   |   |
|     Accounts      payable                                                                                                                                                                             |   | $            | 3,617,043  |   |   | $ | 6,069,851 |   |
|     Accrued      interest                                                                                                                                                                             |   |         | 148,538    |   |   |   | 147,461 |   |
|     Current      portion of derivative instruments (Notes 4 and 20)                                                                                                                                   |   |         | 436,203    |   |   |   | 7,287,208 |   |
|     Accrued      liabilities (Note 11)                                                                                                                                                                |   |         | 1,336,219  |   |   |   | 1,029,690 |   |
|     Accrued      liabilities in Saudi Arabia (Note 12)                                                                                                                                                |   |         | 471,280    |   |   |   | 1,429,156 |   |
|     Notes      payable (Note 11)                                                                                                                                                                      |   |         | 12,000     |   |   |   | 12,000 |   |
|     Current      portion of post retirement benefit (Note 21)                                                                                                                                         |   |         | 31,500     |   |   |   | -- |   |
|     Current      portion of long-term debt (Note 10)                                                                                                                                                  |   |         | 1,400,000  |   |   |   | 4,920,442 |   |
|     Current      portion of other liabilities                                                                                                                                                         |   |         | 579,500    |   |   |   | 544,340 |   |
|                                                                                                                                                                                                                      |   |         |       |   |   |   |   |   |
|           Total      current liabilities                                                                                                                                |   |         | 8,032,283  |   |   |   | 21,440,148 |   |
|                                                                                                                                                                                                                      |   |         |       |   |   |   |   |   |
|   LONG-TERM      DEBT, net of current portion (Note 10)                                                                                                                                                         |   |         | 23,439,488 |   |   |   | 23,557,294 |   |
|   POST      RETIREMENT BENEFIT, net of current portion (Note 21)                                                                                                                                                |   |         | 815,378    |   |   |   | 823,500 |   |
|                                                                                                                                                                                                                      |   |         |       |   |   |   |   |   |
|   DERIVATIVE      INSTRUMENTS, net of current portion (Notes      4 and 20)                                                                                                                                |   |         | 838,489    |   |   |   | 1,386,103 |   |
|   OTHER      LIABILITIES, net      of current portion                                                                                                                                                           |   |         | 562,011    |   |   |   | 446,035 |   |
|   DEFERRED      INCOME TAXES (Note 15)                                                                                                                                                                          |   |         | 4,332,911  |   |   |   | 3,356,968 |   |
|                                                                                                                                                                                                                      |   |         |       |   |   |   |   |   |
|           Total      liabilities                                                                                                                                        |   |         | 38,020,560 |   |   |   | 51,010,048 |   |
|                                                                                                                                                                                                                      |   |         |       |   |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES      (Note 14)                                                                                                                                                                              |   |         |       |   |   |   |   |   |
|                                                                                                                                                                                                                      |   |         |       |   |   |   |   |   |
| EQUITY                                                                                                                                                                                                                    |   |         |       |   |   |   |   |   |
|   Common Stock      - authorized 40,000,000 shares of $.10 par value; issued      and outstanding, 23,433,995 and 23,421,995 shares      in      2009 and 2008, respectively |   |         | 2,343,399  |   |   |   | 2,342,199 |   |
|   Additional      Paid-in Capital                                                                                                                                                                               |   |         | 41,604,168 |   |   |   | 41,325,207 |   |
|   Accumulated      Other Comprehensive Loss                                                                                                                                                                     |   |         | (841,297   | ) |   |   | (1,120,072 | ) |
|   Retained      Earnings                                                                                                                                                                                        |   |         | 9,070,736  |   |   |   | 2,443,285 |   |
|  Total      Arabian American Development Company Stockholders’ Equity                                                                                                                                     |   |         | 52,177,006 |   |   |   | 44,990,619 |   |
|  Noncontrolling      interest                                                                                                                                                                                        |   |         | 289,223    |   |   |   | 289,223 |   |
|        Total      equity                                                                                                                                                               |   |         | 52,466,229 |   |   |   | 45,279,842 |   |
|                                                                                                                                                                                                                      |   |         |       |   |   |   |   |   |
|      TOTAL      LIABILITIES AND EQUITY                                                                                                                                                           |   | $            | 90,486,789 |   |   | $ | 96,289,890 |   |

----

|                                                                                                                                                                                                |   | 2009   |        |   | 2008       |   |        | 2007   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|------------|--------|-------------|--------|--------|
| Revenues                                                                                                                                                                                            |   |   |        |   | (restated) |   |        |   |   |
|   Petrochemical      product sales                                                                                                                                                        |   | $      | 109,178,541 |   |       | $      | 130,264,329 |   |   | $ | 103,204,565 |   |
|   Transloading      sales                                                                                                                                                                 |   |   | 4,624,681   |   |       |   | 20,238,841  |   |   |   | -- |   |
|   Processing                                                                                                                                                                              |   |   | 3,783,457   |   |       |   | 4,127,064   |   |   |   | 5,433,550 |   |
|                                                                                                                                                                                                |   |   | 117,586,679 |   |       |   | 154,630,234 |   |   |   | 108,638,115 |   |
| Operating      costs and expenses                                                                                                                                                                   |   |   |        |   |       |   |        |   |   |   |   |   |
|   Cost      of petrochemical product sales and Processing      (including depreciation of    $2,246,309,      $1,299,580, and $793,220,  respectively) |   |   | 95,688,819  |   |       |   | 159,226,896 |   |   |   | 89,654,585 |   |
|    Gross      Profit (Loss)                                                                                                                                                          |   |   | 21,897,860  |   |       |   | (4,596,662  | )      |   |   | 18,983,530 |   |
|                                                                                                                                                                                                |   |   |        |   |       |   |        |   |   |   |   |   |
| General      and Administrative Expenses                                                                                                                                                            |   |   |        |   |       |   |        |   |   |   |   |   |
|   General      and administrative                                                                                                                                                         |   |   | 9,144,710   |   |       |   | 9,034,366   |   |   |   | 7,619,280 |   |
|   Depreciation                                                                                                                                                                            |   |   | 443,538     |   |       |   | 331,703     |   |   |   | 281,542 |   |
|                                                                                                                                                                                                |   |   | 9,588,248   |   |       |   | 9,366,069   |   |   |   | 7,900,822 |   |
|                                                                                                                                                                                                |   |   |        |   |       |   |        |   |   |   |   |   |
| Operating      income (loss)                                                                                                                                                                        |   |   | 12,309,612  |   |       |   | (13,962,731 | )      |   |   | 11,082,708 |   |
|                                                                                                                                                                                                |   |   |        |   |       |   |        |   |   |   |   |   |
| Other      income (expense)                                                                                                                                                                         |   |   |        |   |       |   |        |   |   |   |   |   |
|   Interest      income                                                                                                                                                                    |   |   | 63,669      |   |       |   | 204,635     |   |   |   | 297,494 |   |
|   Interest      expense                                                                                                                                                                   |   |   | (1,327,530  | )      |       |   | (605,254    | )      |   |   | (142,696 | ) |
|   Equity      in loss from AMAK (Notes 2 and 8)                                                                                                                                           |   |   | --          |   |       |   | (1,856,250  | )      |   |   | -- |   |
|   Miscellaneous      income (expense)                                                                                                                                                     |   |   | (74,332     | )      |       |   | 4,165       |   |   |   | (62,794 | ) |
|                                                                                                                                                                                                |   |   | (1,338,193  | )      |       |   | (2,252,704  | )      |   |   | 92,004 |   |
|  Income      (loss) before income tax expense (benefit)                                                                                                                                        |   |   | 10,971,419  |   |       |   | (16,215,435 | )      |   |   | 11,174,712 |   |
|                                                                                                                                                                                                |   |   |        |   |       |   |        |   |   |   |   |   |
| Income      tax expense (benefit)                                                                                                                                                                   |   |   | 4,343,968   |   |       |   | (4,978,846  | )      |   |   | 3,426,243 |   |
|                                                                                                                                                                                                |   |   |        |   |       |   |        |   |   |   |   |   |
|    Net      income (loss)                                                                                                                                                            |   |   | 6,627,451   |   |       |   | (11,236,589 | )      |   |   | 7,748,469 |   |
|                                                                                                                                                                                                |   |   |        |   |       |   |        |   |   |   |   |   |
| Net      loss attributable to Noncontrolling Interest                                                                                                                                               |   |   | --          |   |       |   | 505,424     |   |   |   | 22,912 |   |
|                                                                                                                                                                                                |   |   |        |   |       |   |        |   |   |   |   |   |
| Net      income (loss) attributable to Arabian American      Development Company                                                                                                               |   | $      | 6,627,451   |   |       | $      | (10,731,165 | )      |   | $ | 7,771,381 |   |
|                                                                                                                                                                                                |   |   |        |   |       |   |        |   |   |   |   |   |
| Net      income (loss) per common share                                                                                                                                                             |   |   |        |   |       |   |        |   |   |   |   |   |
|     Basic      earnings (loss) per share                                                                                                                                        |   | $      | 0.28        |   |       | $      | (0.46       | )      |   | $ | 0.34 |   |
|     Diluted      earnings (loss) per share                                                                                                                                      |   | $      | 0.28        |   |       | $      | (0.46       | )      |   | $ | 0.33 |   |
|                                                                                                                                                                                                |   |   |        |   |       |   |        |   |   |   |   |   |
| Weighted      average number of common                                                                                                                                                              |   |   |        |   |       |   |        |   |   |   |   |   |
|   shares      outstanding                                                                                                                                                                 |   |   |        |   |       |   |        |   |   |   |   |   |
|      Basic                                                                                                                                                                 |   |   | 23,733,955  |   |       |   | 23,409,458  |   |   |   | 22,895,394 |   |
|      Diluted                                                                                                                                                               |   |   | 23,800,499  |   |       |   | 23,409,458  |   |   |   | 23,291,669 |   |

----

|                                                                                                                               |   | ARABIAN AMERICAN DEVELOPMENT      STOCKHOLDERS |       |   |    |   |      |          |   |   |          |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|------------|--------|---------|--------|-----------|---------------|--------|--------|---------------|--------|
|                                                                                                                               |   |                                           |       |   |    |   |      |          |   |   | Accumulated   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                               |   |                                           |       |   |    |   |      | Additional    |   |   | Other         |   |   | Retained |   |   |   |   |   | Non- |   |   |   |   |
|                                                                                                                               |   | Common Stock                                   |       |   | Paid-In |   |      | Comprehensive |   |   | Earnings      |   |   |   |   |   | Controlling |   |   | Total |   |
|                                                                                                                               |   | Shares                                         |       |   | Amount  |   |      | Capital       |   |   | Income (Loss) |   |   | (Deficit) |   |   | Total |   |   | Interest |   |   | Equity |   |
|                                                                                                                               |   |                                           |       |   |    |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DECEMBER      31, 2006                                                                                                             |   |                                           | 22,571,994 |   |    | $      | 2,257,199 |          |   | $      | 37,087,206    |   |   | $ | - |   |   | $ | 5,403,069 |   |   | $ | 44,747,474 |   |   | $ | 817,558 |   |   | $ | 45,565,032 |   |
|                                                                                                                               |   |                                           |       |   |    |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      Stock                                                                                                                  |   |                                           |       |   |    |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Issued      to Employees                                                                                               |   |                                           | 30,000     |   |    |   | 3,000     |          |   |   | 96,000        |   |   |   | - |   |   |   | - |   |   |   | 99,000 |   |   |   | - |   |   |   | 99,000 |   |
|                                                                                                                               |   |                                           |       |   |    |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net      Income (Loss)                                                                                                 |   |                                           | -          |   |    |   | -         |          |   |   | -             |   |   |   | - |   |   |   | 7,771,381 |   |   |   | 7,771,381 |   |   |   | (22,912 | ) |   |   | 7,748,469 |   |
|                                                                                                                               |   |                                           |       |   |    |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DECEMBER      31, 2007                                                                                                             |   |                                           | 22,601,994 |   |    | $      | 2,260,199 |          |   | $      | 37,183,206    |   |   | $ | - |   |   | $ | 13,174,450 |   |   | $ | 52,617,855 |   |   | $ | 794,646 |   |   | $ | 53,412,501 |   |
|                                                                                                                               |   |                                           |       |   |    |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      Stock  Issued      for Services in connection      with         AMAK                          |   |                                           | 750,000    |   |    |   | 75,000    |          |   |   | 3,637,500     |   |   |   | - |   |   |   | - |   |   |   | 3,712,500 |   |   |   | - |   |   |   | 3,712,500 |   |
|   Issued      to Directors                                                                                               |   |                                           | 30,001     |   |    |   | 3,000     |          |   |   | 226,501       |   |   |   | - |   |   |   | - |   |   |   | 229,501 |   |   |   | - |   |   |   | 229,501 |   |
|   Issued      to Employees                                                                                               |   |                                           | 40,000     |   |    |   | 4,000     |          |   |   | 278,000       |   |   |   | - |   |   |   | - |   |   |   | 282,000 |   |   |   | - |   |   |   | 282,000 |   |
| Unrealized      Loss on                                                                                                            |   |                                           |       |   |    |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Interest      Rate Swap                                                                                                |   |                                           |       |   |    |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   (net      of income tax                                                                                                |   |                                           |       |   |    |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   benefit      of $ 577,007)                                                                                             |   |                                           | -          |   |    |   | -         |          |   |   | -             |   |   |   | (1,120,072 | ) |   |   | - |   |   |   | (1,120,072 | ) |   |   | - |   |   |   | (1,120,072 | ) |
|                                                                                                                               |   |                                           |       |   |    |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net      Loss                                                                                                          |   |                                           |       |   |    |   |      |          |   |   |          |   |   |   |   |   |   |   | (10,731,165 | ) |   |   | (10,731,165 | ) |   |   | (505,423 | ) |   |   | (11,236,588 | ) |
|       Comprehensive      Loss                                                                        |   |                                           | -          |   |    |   | -         |          |   |   | -             |   |   |   | - |   |   |   | - |   |   |   | (11,851,237 | ) |   |   | - |   |   |   | - |   |
|                                                                                                                               |   |                                           |       |   |    |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DECEMBER      31, 2008(restated)                                                                                                   |   |                                           | 23,421,995 |   |    | $      | 2,342,199 |          |   | $      | 41,325,207    |   |   | $ | (1,120,072 | ) |   | $ | 2,443,285 |   |   | $ | 44,990,619 |   |   | $ | 289,223 |   |   | $ | 45,279,842 |   |
|                                                                                                                               |   |                                           |       |   |    |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock      options                                                                                                                 |   |                                           |       |   |    |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Issued      to Directors                                                                                               |   |                                           | -          |   |    |   | -         |          |   |   | 234,922       |   |   |   | - |   |   |   | - |   |   |   | 234,922 |   |   |   | - |   |   |   | 234,922 |   |
|   Issued      to Employees                                                                                               |   |                                           | -          |   |    |   | -         |          |   |   | 4,439         |   |   |   | - |   |   |   | - |   |   |   | 4,439 |   |   |   | - |   |   |   | 4,439 |   |
| Stock      issued to Directors                                                                                                     |   |                                           | 12,000     |   |    |   | 1,200     |          |   |   | 39,600        |   |   |   | - |   |   |   | - |   |   |   | 40,800 |   |   |   | - |   |   |   | 40,800 |   |
| Unrealized      Gain on  Interest      Rate Swap (net  of      income tax expense  of      $143,612) |   |                                           | -          |   |    |   | -         |          |   |   | -             |   |   |   | 278,775 |   |   |   | - |   |   |   | 278,775 |   |   |   | - |   |   |   | 278,775 |   |
| Net      Income                                                                                                                    |   |                                           | -          |   |    |   | -         |          |   |   | -             |   |   |   | - |   |   |   | 6,627,451 |   |   |   | 6,627,451 |   |   |   | - |   |   |   | 6,627,451 |   |
|   Comprehensive      Income                                                                                              |   |                                           | -          |   |    |   | -         |          |   |   | -             |   |   |   | - |   |   |   | - |   |   |   | 6,906,226 |   |   |   | - |   |   |   | - |   |
|                                                                                                                               |   |                                           |       |   |    |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DECEMBER      31, 2009                                                                                                             |   |                                           | 23,433,995 |   |    | $      | 2,343,399 |          |   | $      | 41,604,168    |   |   | $ | (841,297 | ) |   | $ | 9,070,736 |   |   | $ | 52,177,006 |   |   | $ | 289,223 |   |   | $ | 52,466,229 |   |
|                                                                                                                               |   |                                           |       |   |    |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                 |   | 2009   |       |   | 2008       |   |              | 2007   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|------------|--------|-------------------|--------|--------|
|                                                                                                                                                 |   |   |       |   | (restated) |   |              |   |   |
| Operating      activities                                                                                                                            |   |   |       |   |       |   |              |   |   |
|   Net      income (loss) attributable to Arabian    American      Development Co.                                      |   | $      | 6,627,451  |   |       | $      | (      10,731,165 | )      |   | $ | 7,771,381 |   |
|   Adjustments      to reconcile net income (loss)                                                                                          |   |   |       |   |       |   |              |   |   |   |   |   |
|     to      Arabian American Development Co. to Net    cash      provided by (used in) operating activities: |   |   |       |   |       |   |              |   |   |   |   |   |
|     Depreciation                                                                                                                 |   |   | 2,689,847  |   |       |   | 1,631,283         |   |   |   | 1,074,762 |   |
|     Accretion      of notes receivable discounts                                                                                 |   |   | (53,628    | )      |       |   | (101,619          | )      |   |   | (148,355 | ) |
|     Accretion      of unrealized gross profit                                                                                    |   |   | -          |   |       |   | -                 |   |   |   | (52,137 | ) |
|     Unrealized      (gain) loss on derivative instruments                                                                        |   |   | (6,976,232 | )      |       |   | 5,485,914         |   |   |   | (972,504 | ) |
|     Share-based      compensation                                                                                                |   |   | 280,161    |   |       |   | 282,000           |   |   |   | 99,000 |   |
|     Provision      for doubtful accounts                                                                                         |   |   | 111,154    |   |       |   | 465,000           |   |   |   | - |   |
|     Deferred      income taxes                                                                                                   |   |   | 8,977,317  |   |       |   | (5,528,129        | )      |   |   | 137,131 |   |
|     Postretirement      obligation                                                                                               |   |   | 23,378     |   |       |   | 202,000           |   |   |   | 621,500 |   |
|     Impairment      loss                                                                                                         |   |   | -          |   |       |   | 496,306           |   |   |   | - |   |
|     Loss      attributable to noncontrolling interest                                                                            |   |   | -          |   |       |   | (505,423          | )      |   |   | (22,912 | ) |
|     Equity      in loss from AMAK                                                                                                |   |   | -          |   |       |   | 1,856,250         |   |   |   | - |   |
|   Changes      in operating assets and liabilities:                                                                                        |   |   |       |   |       |   |              |   |   |   |   |   |
|     Increase      in trade receivables                                                                                           |   |   | (510,083   | )      |       |   | (58,465           | )      |   |   | (3,417,379 | ) |
|     Decrease      in notes receivable                                                                                            |   |   | 582,177    |   |       |   | 711,396           |   |   |   | 806,447 |   |
|     (Increase)      decrease in income tax receivable                                                                            |   |   | (4,297,082 | )      |       |   | 640,781           |   |   |   | (450,809 | ) |
|     (Increase)      decrease in inventories                                                                                      |   |   | (2,618,969 | )      |       |   | 441,436           |   |   |   | 688,681 |   |
|     (Increase)      decrease in prepaid expenses and  other      assets                                                |   |   | 59,353     |   |       |   | (151,029          | )      |   |   | (28,254 | ) |
|     (Increase)      decrease in derivative instruments deposits                                                             |   |   | 3,950,000  |   |       |   | (3,950,000        | )      |   |   | 1,500,000 |   |
|     Increase      in other liabilities                                                                                           |   |   | 773,000    |   |       |   | -                 |   |   |   | - |   |
|      Increase      (decrease) in accounts payable and  accrued      liabilities                                   |   |   | (2,146,279 | )      |       |   | 2,750,258         |   |   |   | 2,076,607 |   |
|     Increase      in accrued interest                                                                                            |   |   | 1,077      |   |       |   | 61,909            |   |   |   | 25,695 |   |
|     Increase      (decrease) in accrued liabilities in  Saudi      Arabia                                              |   |   | (957,876   | )      |       |   | 22,355            |   |   |   | (238,456 | ) |
|     Net      cash provided by (used in) operating activities                                                                |   |   | 6,514,766  |   |       |   | (5,978,942        | )      |   |   | 9,470,398 |   |
|                                                                                                                                                 |   |   |       |   |       |   |              |   |   |   |   |   |
| Investing      activities                                                                                                                            |   |   |       |   |       |   |              |   |   |   |   |   |
|   Additions      to mineral properties in Saudi Arabia                                                                                     |   |   | -          |   |       |   | (390,579          | )      |   |   | (331,058 | ) |
|   Additions      to property, pipeline and equipment                                                                                       |   |   | (3,184,140 | )      |       |   | (15,030,593       | )      |   |   | (10,799,205 | ) |
|   Reductions      in  mineral properties in the United States                                                               |   |   | -          |   |       |   | -                 |   |   |   | 94 |   |
|     Net      cash used in investing activities                                                                                   |   |   | (3,184,140 | )      |       |   | (15,421,172       | )      |   |   | (11,130,169 | ) |
|                                                                                                                                                 |   |   |       |   |       |   |              |   |   |   |   |   |
| Financing      Activities                                                                                                                            |   |   |       |   |       |   |              |   |   |   |   |   |
|   Additions      to long-term debt                                                                                                         |   |   | 2,530,761  |   |       |   | 25,900,000        |   |   |   | 6,000,000 |   |
|   Repayment      of long-term debt                                                                                                         |   |   | (6,169,009 | )      |       |   | (6,530,574        | )      |   |   | (2,488,827 | ) |
|   Repayment      of note to stockholders                                                                                                   |   |   | -          |   |       |   | -                 |   |   |   | (500 | ) |
|     Net      cash provided (used) in financing activities                                                                        |   |   | (3,638,248 | )      |       |   | 19,369,426        |   |   |   | 3,510,673 |   |

----

|                                                |   | 2009   |      |   | 2008       |   |       | 2007   |   |
|-----------------------------------------------------|--------|--------|-----------|--------|------------|--------|------------|--------|--------|
|                                                |   |   |      |   | (restated) |   |       |   |   |
|                                                |   |   |      |   |       |   |       |   |   |
| Net      increase (decrease) in cash                |   |   | (307,622  | )      |       |   | (2,030,688 | )      |   |   | 1,850,902 |   |
|                                                |   |   |      |   |       |   |       |   |   |   |   |   |
| Cash      and cash equivalents at beginning of year |   |   | 2,759,236 |   |       |   | 4,789,924  |   |   |   | 2,939,022 |   |
|                                                |   |   |      |   |       |   |       |   |   |   |   |   |
| Cash      and cash equivalents at end of year       |   | $      | 2,451,614 |   |       | $      | 2,759,236  |   |   | $ | 4,789,924 |   |

|                                                                                                        |   | 2009   |      |   | 2008   |   |       | 2007   |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|------------|--------|--------|
| Supplemental      disclosure of cash flow information:                                                      |   |   |      |   |   |   |       |   |   |
|   Cash      payments for interest                                                                 |   | $      | 1,334,453 |   |   | $      | 918,845    |   |   | $ | 294,206 |   |
|   Cash      payments (net of refunds) for taxes                                                   |   | $      | (278,622  | )      |   | $      | 4,814      |   |   | $ | 3,585,000 |   |
|                                                                                                        |   |   |      |   |   |   |       |   |   |   |   |   |
| Supplemental      disclosure of non-cash items:                                                             |   |   |      |   |   |   |       |   |   |   |   |   |
|   Capital      expansion amortized to depreciation expense                                        |   | $      | 621,864   |   |   | $      | 630,731    |   |   | $ | 584,348 |   |
|   Investment      in AMAK                                                                         |   | $      | --        |   |   | $      | 33,002,407 |   |   |   | -- |   |
|   Issuance      of common stock for settlement of accrued Directors’      compensation |   | $      | --        |   |   | $      | 229,501    |   |   | $ | -- |   |
|   Unrealized      loss/(gain) on interest rate swap, net of tax benefit/expense              |   | $      | (278,775  | )      |   | $      | 1,120,072  |   |   | $ | -- |   |

----

|   | NOTE      1 - BUSINESS AND OPERATIONS OF THE COMPANY AND SUMMARY OF SIGNIFICANT      ACCOUNTING POLICIES |
|--------|----------------------------------------------------------------------------------------------------------|

|   | Business      and Operations of the Company |
|--------|---------------------------------------------|

----

|   | NOTE      1 - BUSINESS AND OPERATIONS OF THE COMPANY AND SUMMARY OF SIGNIFICANT      ACCOUNTING POLICIES – Continued |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|   | NOTE      1 - BUSINESS AND OPERATIONS OF THE COMPANY AND SUMMARY OF SIGNIFICANT      ACCOUNTING POLICIES – Continued |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|   | NOTE      1 - BUSINESS AND OPERATIONS OF THE COMPANY AND SUMMARY OF SIGNIFICANT      ACCOUNTING POLICIES – Continued |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|   | NOTE      1 - BUSINESS AND OPERATIONS OF THE COMPANY AND SUMMARY OF SIGNIFICANT      ACCOUNTING POLICIES – Continued |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|   | NOTE      1 - BUSINESS AND OPERATIONS OF THE COMPANY AND SUMMARY OF SIGNIFICANT      ACCOUNTING POLICIES – Continued |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                       |   | December 31, 2008 |       |
|--------------------------------------------------------------------------------------------|--------|-------------------|------------|
|                                                                                       |   | As      Reported  |       |   | As      Restated |   |
| Consolidated      Balance Sheet                                                            |   |              |       |   |   |   |
| Investment      in AMAK                                                                    |   | $                 | 33,002,407 |   |   | $ | 31,146,157 |   |
| Total      Assets                                                                          |   |              | 98,146,140 |   |   |   | 96,289,890 |   |
| Retained      Earnings                                                                     |   |              | 4,299,535  |   |   |   | 2,443,285 |   |
| Total      Arabian American Development  Company      Stockholders’ Equity |   |              | 46,846,869 |   |   |   | 44,990,619 |   |
| Total      Equity                                                                          |   |              | 47,136,092 |   |   |   | 45,279,842 |   |
| Total      Liabilities and Equity                                                          |   |              | 98,146,140 |   |   |   | 96,289,890 |   |

|                                                                         |   | December 31, 2008 |        |
|------------------------------------------------------------------------------|--------|-------------------|-------------|
|                                                                         |   | As      Reported  |        |   | As      Restated |   |
| Consolidated      Statement of Operations                                    |   |              |        |   |   |   |
| Equity      in loss from AMAK                                                |   | $                 | --          |   |   | $ | (1,856,250 | ) |
| Loss      before income tax benefit                                          |   |              | (14,359,185 | ) |   |   | (16,215,435 | ) |
| Net      loss                                                                |   |              | (9,380,339  | ) |   |   | (11,236,589 | ) |
| Net      loss attributable to Arabian American Development      Company |   |              | (8,874,915  | ) |   |   | (10,731,165 | ) |
| Net      loss per common share                                               |   |              |        |   |   |   |   |   |
| Basic                                                                        |   | $                 | (0.38       | ) |   | $ | (0.46 | ) |
| Diluted                                                                      |   | $                 | (0.38       | ) |   | $ | (0.46 | ) |

|                                                      |   | December 31, 2008 |       |
|-----------------------------------------------------------|--------|-------------------|------------|
|                                                      |   | As      Reported  |       |   | As      Restated |   |
| Consolidated      Statement of Stockholders’ Equity |   |              |       |   |   |   |
| Comprehensive      loss                                   |   | $                 | (9,994,987 | ) |   | $ | (11,851,237 | ) |

|                                                                         |   | December 31, 2008 |       |
|------------------------------------------------------------------------------|--------|-------------------|------------|
|                                                                         |   | As      Reported  |       |   | As      Restated |   |
| Consolidated      Statement of Cash Flows                                    |   |              |       |   |   |   |
| Operating      Activities                                                    |   |              |       |   |   |   |
| Net      loss attributable to Arabian American Development      Company |   | $                 | (8,874,915 | ) |   | $ | (10,731,165 | ) |
| Equity      in loss from AMAK                                                |   | $                 | --         |   |   | $ | 1,856,250 |   |

----

----

| Level      1 inputs | Level      1 inputs utilize quoted prices (unadjusted) in active markets for      identical assets or liabilities that the Company has the ability to      access.                                                                                                                                                                                                                                                                                                                                            |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Level      2 inputs | Level      2 inputs are inputs other than quoted prices included in Level 1 that are      observable for the asset or liability, either directly or      indirectly.  Level 2 inputs may include quoted prices for      similar assets and liabilities in active markets, as well as inputs that      are observable for the asset or liability (other than quoted prices), such      as interest rates, foreign exchange rates, and yield curves that are      observable at commonly quoted intervals. |
| Level      3 inputs | Level      3 inputs are unobservable inputs for the asset or liability, which is      typically based on an entity’s own assumptions, as there is little, if      any, related market activity.                                                                                                                                                                                                                                                                                                              |

----

|                    |   |                   |      |   | Fair      Value Measurements Using |   |
|-------------------------|--------|------------------------|-----------|--------|------------------------------------|--------|
|                    |   | December      31, 2009 |      |   | Level      1                       |   |   | Level      2 |   |   | Level      3 |   |
| Liabilities:            |   |                   |      |   |                               |   |   |   |   |   |   |   |
| Interest      Rate Swap |   | $                      | 1,274,692 |   |                               |   | - |   |   | $ | 1,274,692 |   |   |   | - |   |

|                              |   |                   |      |   | Fair      Value Measurements Using |   |
|-----------------------------------|--------|------------------------|-----------|--------|------------------------------------|--------|
|                              |   | December      31, 2008 |      |   | Level      1                       |   |   | Level      2 |   |   | Level      3 |   |
| Liabilities:                      |   |                   |      |   |                               |   |   |   |   |   |   |   |
| Financial      Swaps on Feedstock |   | $                      | 5,855,850 |   |                               | $      | 5,855,850 |   |   | $ | - |   |   | $ | - |   |
| Options      on Crude             |   |                   | 1,120,382 |   |                               |   | - |   |   |   | 1,120,382 |   |   |   | - |   |
| Interest      Rate Swap           |   |                   | 1,697,079 |   |                               |   | - |   |   |   | 1,697,079 |   |   |   | - |   |
|   Total                 |   | $                      | 8,673,311 |   |                               | $      | 5,855,850 |   |   | $ | 2,817,461 |   |   |   | - |   |

|                   |   | 2009   |      |   | 2008   |   |
|------------------------|--------|--------|-----------|--------|--------|--------|
|                   |   |   |      |   |   |   |
| Raw      material      |   | $      | 3,376,943 |   |   | $      | 1,291,400 |   |
| Finished      products |   |   | 1,688,226 |   |   |   | 1,154,800 |   |
|                   |   |   |      |   |   |   |   |   |
| Total      inventory   |   | $      | 5,065,169 |   |   | $      | 2,446,200 |   |

----

|                                                              |   | 2009   |    |   | 2008   |   |
|-------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                              |   |   |    |   |   |   |
| Note      with processing customer (A)                            |   | $      | 424,181 |   |   | $      | 914,394 |   |
|   Less      discount                                    |   |   | (16,793 | )      |   |   | (68,612 | ) |
|                                                              |   |   | 407,388 |   |   |   | 845,782 |   |
|                                                              |   |   |    |   |   |   |   |   |
| Note      with processing customer (B)                            |   |   | --      |   |   |   | 91,964 |   |
| Less      discount                                                |   |   | --      |   |   |   | (1,809 | ) |
|                                                              |   |   | --      |   |   |   | 90,155 |   |
|                                                              |   |   |    |   |   |   |   |   |
| Total      long-term notes receivable                             |   |   | 407,388 |   |   |   | 935,937 |   |
|                                                              |   |   |    |   |   |   |   |   |
| Less      current portion                                         |   |   | 372,387 |   |   |   | 528,549 |   |
|                                                              |   |   |    |   |   |   |   |   |
|  Total      long-term notes receivable, less current portion |   | $      | 35,001  |   |   | $      | 407,388 |   |
|                                                              |   |   |    |   |   |   |   |   |

|   |  (A) | The      Company has notes receivable from a long term processing customer for      capital costs incurred in making adjustments to the processing unit at      their request.  The payment term is 5 years with interest      imputed at a rate of 8%.  Payments of $40,851 are due      monthly. |
|--------|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (B) | The      Company had notes receivable from a long term processing customer for      capital costs incurred in making adjustments to the processing unit at      their request.  The payment term was 3 years with interest      imputed at a rate of 8%.  Payments of $18,432 were due      monthly.  This note was paid off during  2009. |
|--------|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Payments      from long-term notes for the next five years ending December 31 are as      follows: |
|--------|----------------------------------------------------------------------------------------------------|

| Year      Ending December 31,  |   | Long-Term      Notes Receivable |    |
|-------------------------------------|--------|---------------------------------|---------|
| 2010                                |   |                            | 388,496 |   |
| 2011                                |   |                            | 35,685  |   |
|                                |   |                            | 424,181 |   |
| Less:      discount                 |   |                            | 16,793  |   |
|                                |   | $                               | 407,388 |   |

|                                                       |   | December 31, |        |
|------------------------------------------------------------|--------|--------------|-------------|
|                                                       |   | 2009         |        |   | 2008 |   |
| Platinum      catalyst                                     |   | $            | 1,497,285   |   |   | $ | 1,318,068 |   |
| Land                                                       |   |         | 689,363     |   |   |   | 552,705 |   |
| Property,      pipeline and equipment                      |   |         | 47,885,793  |   |   |   | 45,304,092 |   |
| Construction      in progress                              |   |         | 10,000      |   |   |   | 10,000 |   |
| Total      property, pipeline and equipment                |   |         | 50,082,441  |   |   |   | 47,184,865 |   |
|     Less      accumulated depreciation |   |         | (17,674,938 | ) |   |   | (14,649,791 | ) |
| Net      property, pipeline and equipment                  |   | $            | 32,407,503  |   |   | $ | 32,535,074 |   |

----

----

|                                                        |   |   |        |
|-------------------------------------------------------------|--------|--------|-------------|
| Accumulated      costs of mineral Interests in Saudi Arabia |   | $      | 40,289,907  |   |
| Contribution      of AMAK organization costs                |   |   | 3,712,500   |   |
|   Loan      payable assumed by AMAK               |   |   | (11,000,000 | ) |
| Net      investment in AMAK                                 |   | $      | 33,002,407  |   |

| Initial      investment in AMAK              |   | $      | 33,002,407 |   |
|----------------------------------------------|--------|--------|------------|--------|
| Share      of net loss of AMAK               |   |   | (1,856,250 | )      |
| Investment      in AMAK at December 31, 2008 |   | $      | 31,146,157 |   |

----

----

|                                                                          |   | 2009   |       |   | 2008   |   |
|-------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Notes      payable:                                                           |   |   |       |   |   |   |
|   Other                                                             |   |   | 12,000     |   |   |   | 12,000 |   |
|      Total                                           |   | $      | 12,000     |   |   | $      | 12,000 |   |
|                                                                          |   |   |       |   |   |   |   |   |
| Long-term      debt:                                                          |   |   |       |   |   |   |   |   |
|   Capital      lease with affiliated party (A)                      |   |   | --         |   |   |   | 19,010 |   |
|   Revolving      note to domestic bank (B)                          |   |   | 12,489,488 |   |   |   | 14,458,726 |   |
|   Term      note to domestic bank (C)                               |   |   | 12,350,000 |   |   |   | 14,000,000 |   |
|                                                                          |   |   |       |   |   |   |   |   |
|      Total      long-term debt                       |   |   | 24,839,488 |   |   |   | 28,477,736 |   |
|                                                                          |   |   |       |   |   |   |   |   |
|   Less      current portion                                         |   |   | 1,400,000  |   |   |   | 4,920,442 |   |
|                                                                          |   |   |       |   |   |   |   |   |
|      Total      long-term debt, less current portion |   | $      | 23,439,488 |   |   | $      | 23,557,294 |   |

|   |  (A) | On      August 1, 2004, South Hampton entered into a $136,876 capital lease with a      transportation company owned by a Company officer for the purchase of a      diesel powered manlift.  The lease bore interest of 6.9% over a      5 year term with a monthly payment of $3,250.  Title transferred      to South Hampton at the end of the term in July 2009.  The      original cost of the diesel powered manlift was $136,876 with accumulated      depreciation of $74,141 and $60,454 at December 31, 2009, and 2008,      respectively. |
|--------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B)   | On      May 25, 2006 South Hampton entered into a $12.0 million revolving loan      agreement with a domestic bank secured by accounts receivable and      inventory. The original agreement was due to expire October 31,      2008.  An amendment was entered into on July 8, 2009 which      extended the termination date to June 30, 2011.  Additional      amendments were entered into during 2008 and 2009 which ultimately      increased the availability of the line to $21.0 million and subsequently      reduced it to $18,000,000 based upon the Company’s accounts receivable and      inventory.  At December 31, 2009, there was a long-term amount      outstanding of $12,489,488. The credit agreement contains a sub-limit of      $3.0 million available to be used in support of the hedging      program.  The interest rate on the loan varies according to      several options and the amount outstanding.  At December 31,      2009 the rate was 3.0%, and no amounts were available to be      drawn.  A commitment fee of 0.25% is due quarterly on the unused      portion of the loan.  If the amount outstanding surpasses the      amount calculated by the borrowing base, a principal payment would be due      to reduce the amount outstanding to the calculated      base.    Interest is paid      monthly.  Covenants that must be maintained include EBITDA,      capital expenditures, dividends payable to parent, and leverage      ratio. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (C)   | On      September 19, 2007 South Hampton entered into a $10.0 million term loan      agreement with a |
|-----------------|-------------------------------------------------------------------------------------------------------|

|   | Principal      payments of long-term debt for the next five years and thereafter ending      December 31 are as follows: |
|--------|--------------------------------------------------------------------------------------------------------------------------|

| Year      Ending December 31,  |   | Long-Term      Debt |       |
|-------------------------------------|--------|---------------------|------------|
| 2010                                |   | $                   | 1,400,000  |   |
| 2011                                |   |                | 13,889,488 |   |
| 2012                                |   |                | 1,400,000  |   |
| 2013                                |   |                | 1,400,000  |   |
| 2014                                |   |                | 1,400,000  |   |
|                                |   |                |       |   |
| Thereafter                          |   |                | 5,350,000  |   |
| Total                               |   | $                   | 24,839,488 |   |

|   | NOTE 11 – ACCRUED      LIABILITIES |
|--------|------------------------------------------|

|                                      |   | 2009   |      |   | 2008   |   |
|-------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Accrued      state taxes                  |   | $      | 103,573   |   |   | $      | 147,221 |   |
| Accrued      payroll                      |   |   | 546,720   |   |   |   | 514,218 |   |
| Accrued      directors’ fees        |   |   | 105,387   |   |   |   | -- |   |
| Accrued      officers’ compensation |   |   | 76,001    |   |   |   | -- |   |
| Other      liabilities                    |   |   | 504,538   |   |   |   | 368,251 |   |
|                                      |   |   |      |   |   |   |   |   |
|    Total                   |   | $      | 1,336,219 |   |   | $      | 1,029,690 |   |

|                      |   | 2009   |    |   | 2008   |   |
|---------------------------|--------|--------|---------|--------|--------|--------|
| Salaries                  |   | $      | 202,920 |   |   | $      | 602,503 |   |
| Termination      benefits |   |   | 213,649 |   |   |   | 807,944 |   |
| Other      liabilities    |   |   | 54,711  |   |   |   | 18,709 |   |
|                      |   |   |    |   |   |   |   |   |
|    Total   |   | $      | 471,280 |   |   | $      | 1,429,156 |   |

----

| Year      ending December 31, |   |   |      |
|-------------------------------|--------|--------|-----------|
| 2010                          |   | $      | 391,248   |   |
| 2011                          |   |   | 369,990   |   |
| 2012                          |   |   | 339,336   |   |
| 2013                          |   |   | 216,048   |   |
| 2014                          |   |   | 63,500    |   |
|                          |   |   |      |   |
| Total                         |   | $      | 1,380,122 |   |

----

| Expected      volatility      | 227% |
|-------------------------------|------|
| Expected      dividends       | None |
| Expected      term (in years) | 10   |
| Risk      free interest rate  | 0.5% |

----

| Expected      volatility      | 227%  |
|-------------------------------|-------|
| Expected      dividends       | None  |
| Expected      term (in years) | 10    |
| Risk      free interest rate  | 0.50% |

| Expected      volatility      | 139-402%    |
|-------------------------------|-------------|
| Expected      dividends       | None        |
| Expected      term (in years) | 1.5-7       |
| Risk      free interest rate  | 0.98%-3.14% |

|                                                       |   | Stock      Options |     |   | WeightedAverageExercisePricePer      Share |   |   | WeightedAverageRemainingContractualLife |   |   | IntrinsicValue(in      thousands) |   |
|------------------------------------------------------------|--------|--------------------|----------|--------|--------------------------------------------|--------|--------|-----------------------------------------|--------|--------|-----------------------------------|--------|
|                                                       |   |               |     |   |                                       |   |   |                                    |   |   |                              |   |
| Outstanding      at December 31, 2008,  and 2007 |   |               | 500,000  |   |                                       | $      | 1.20   |                                    |   |   |                              |   |   |   |
|    Granted                                  |   |               | 439,000  |   |                                       |   | 3.22   |                                    |   |   |                              |   |   |   |
|    Expired                                  |   |               | (100,000 | )      |                                       |   | 2.00   |                                    |   |   |                              |   |   |   |
|    Cancelled                                |   |               | (400,000 | )      |                                       |   | 1.00   |                                    |   |   |                              |   |   |   |
| Outstanding      at December 31, 2009                      |   |               | 439,000  |   |                                       | $      | 3.22   |                                    |   |   | 6.3                               |   |   |   | -- |   |
| Exercisable      at December 31, 2009                      |   |               | 39,000   |   |                                       | $      | 1.36   |                                    |   |   | 9.0                               |   |   |   |   |   |

----

|   | NOTE      15 – INCOME TAXES |
|--------|-----------------------------------|

|                                      |   | Year      ended December 31, |       |
|-------------------------------------------|--------|------------------------------|------------|
|                                      |   | 2009                         |       |   | 2008 |   |   | 2007 |   |
|                                      |   |                         |       |   | (restated) |   |   |   |   |
| Current      federal provision            |   | $                            | (4,866,532 | ) |   | $ | 376,030 |   |   | $ | 3,357,184 |   |
| Current      state provision (benefit)    |   |                         | 89,571     |   |   |   | 173,323 |   |   |   | (68,103 | ) |
|                                      |   |                         |       |   |   |   |   |   |   |   |   |   |
| Deferred      federal provision (benefit) |   |                         | 8,959,098  |   |   |   | (5,388,895 | ) |   |   | 141,443 |   |
| Deferred      state provision (benefit)   |   |                         | 161,831    |   |   |   | (139,304 | ) |   |   | (4,281 | ) |
|                                      |   |                         |       |   |   |   |   |   |   |   |   |   |
| Income      tax expense (benefit)         |   | $                            | 4,343,968  |   |   | $ | (4,978,846 | ) |   | $ | 3,426,243 |   |

|                                                     |   | 2009   |      |   | 2008       |   |       | 2007   |   |
|----------------------------------------------------------|--------|--------|-----------|--------|------------|--------|------------|--------|--------|
|                                                     |   |   |      |   | (restated) |   |       |   |   |
| Income      taxes at U.S. statutory rate                 |   | $      | 3,736,766 |   |       | $      | (5,513,248 | )      |   | $ | 3,807,192 |   |
| State      taxes, net of federal benefit                 |   |   | 230,187   |   |       |   | (42,141    | )      |   |   | 166,685 |   |
| Prior      year overpayments                             |   |   | (13,998   | )      |       |   | (49,872    | )      |   |   | (145,250 | ) |
| Refund      from amended state return                    |   |   | -         |   |       |   | -          |   |   |   | (158,000 | ) |
| Permanent      and other items                           |   |   | 25,720    |   |       |   | (4,710     | )      |   |   | (244,384 | ) |
| Increase      in valuation allowance                     |   |   | 365,293   |   |       |   | 631,125    |   |   |   | - |   |
|     Total      tax expense (benefit) |   | $      | 4,343,968 |   |       | $      | (4,978,846 | )      |   | $ | 3,426,243 |   |

----

|                                                   |   | December 31, |       |
|--------------------------------------------------------|--------|--------------|------------|
|                                                   |   | 2009         |       |   | 2008 |   |
| Deferred      tax liabilities:                         |   |         |       |   | (restated) |   |
|   Plant,      pipeline and equipment         |   | $            | (4,863,610 | ) |   | $ | (4,122,410 | ) |
|                                                   |   |         |       |   |   |   |   |   |
| Deferred      tax assets:                              |   |         |       |   |   |   |   |   |
|   Accounts      receivable                   |   |         | 148,174    |   |   |   | 265,901 |   |
|   Inventory                                  |   |         | 42,726     |   |   |   | 635,865 |   |
|   Mineral      interests                     |   |         | 365,293    |   |   |   | 365,293 |   |
|   Capital      loss carry-forward            |   |         | 1,228,090  |   |   |   | 1,228,090 |   |
|   Unrealized      losses on swap agreements  |   |         | --         |   |   |   | 7,306,270 |   |
|   Unrealized      loss on interest rate swap |   |         | 433,395    |   |   |   | 577,007 |   |
|   Post      retirement benefits              |   |         | 314,758    |   |   |   | 400,149 |   |
|                                                   |   |         |       |   |   |   |   |   |
| Investment      in AMAK                                |   |         | 631,125    |   |   |   | 631,125 |   |
| Stock-based      compensation                          |   |         | 81,383     |   |   |   | - |   |
| Acquisition      costs                                 |   |         | 135,597    |   |   |   | - |   |
| Charitable      contributions                          |   |         | 14,723     |   |   |   | - |   |
|   Gross      deferred tax assets             |   |         | 3,395,264  |   |   |   | 7,287,290 |   |
| Valuation      allowance                               |   |         | (2,224,508 | ) |   |   | (1,859,215 | ) |
|                                                   |   |         |       |   |   |   |   |   |
|   Net      deferred tax assets (liabilities) |   | $            | (3,692,854 | ) |   | $ | 5,428,075 |   |

|                                         |   | 2009   |       |   | 2008       |   |
|----------------------------------------------|--------|--------|------------|--------|------------|--------|
|                                         |   |   |       |   | (restated) |   |
| Current      deferred tax asset              |   | $      | 640,057    |   |       | $      | 8,785,043 |   |
|                                         |   |   |       |   |       |   |   |   |
| Non-current      deferred tax liability:     |   |   |       |   |       |   |   |   |
|                                         |   |   |       |   |       |   |   |   |
| Deferred      tax assets                     |   |   | 2,755,207  |   |       |   | 2,624,657 |   |
| Deferred      tax liability                  |   |   | (4,863,610 | )      |       |   | (4,122,410 | ) |
| Valuation      allowance                     |   |   | (2,224,508 | )      |       |   | (1,859,215 | ) |
| Non-current      deferred tax liability, net |   |   | (4,332,911 | )      |       |   | (3,356,968 | ) |
|                                         |   |   |       |   |       |   |   |   |
| Deferred      tax assets (liabilities), net  |   | $      | (3,692,854 | )      |       | $      | 5,428,075 |   |

----

|                                             |   | December      31, 2009 |        |
|--------------------------------------------------|--------|------------------------|-------------|
|                                             |   | Petrochemical          |        |   | Mining*** |   |   | CorporateAnd Other** |   |   | Total |   |
| Continuing      operations                       |   |                   |        |   |   |   |   |   |   |   |   |   |
|   Revenue      from external customers |   | $                      | 117,586,679 |   |   | $ | - |   |   | $ | - |   |   | $ | 117,586,679 |   |
|   Depreciation*                        |   |                   | 2,688,705   |   |   |   | - |   |   |   | 1,142 |   |   |   | 2,689,847 |   |
|   Operating      income (loss)         |   |                   | 14,255,160  |   |   |   | - |   |   |   | (1,945,548 | ) |   |   | 12,309,612 |   |
|                                             |   |                   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                |   | $                      | 58,752,321  |   |   | $ | - |   |   | $ | 31,734,468 |   |   | $ | 90,486,789 |   |

|                                             |   | December      31, 2008 (restated) |        |
|--------------------------------------------------|--------|-----------------------------------|-------------|
|                                             |   | Petrochemical                     |        |   | Mining*** |   |   | CorporateAnd Other** |   |   | Total |   |
| Continuing      operations                       |   |                              |        |   |   |   |   |   |   |   |   |   |
|   Revenue      from external customers |   | $                                 | 154,630,234 |   |   | $ | - |   |   | $ | - |   |   | $ | 154,630,234 |   |
|   Depreciation*                        |   |                              | 1,630,428   |   |   |   | - |   |   |   | 856 |   |   |   | 1,631,284 |   |
|   Operating      income (loss)         |   |                              | (11,563,597 | ) |   |   | (995,474 | ) |   |   | (1,403,660 | ) |   |   | (13,962,731 | ) |
|                                             |   |                              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                |   | $                                 | 64,555,422  |   |   | $ | 588,311 |   |   | $ | 31,146,157 |   |   | $ | 96,289,890 |   |

|                                             |   | December      31, 2007 |        |
|--------------------------------------------------|--------|------------------------|-------------|
|                                             |   | Petrochemical          |        |   | Mining |   |   | CorporateAnd Other** |   |   | Total |   |
| Continuing      operations                       |   |                   |        |   |   |   |   |   |   |   |   |   |
|   Revenue      from external customers |   | $                      | 108,638,115 |   |   | $ | - |   |   | $ | - |   |   | $ | 108,638,115 |   |
|   Depreciation*                        |   |                   | 1,073,620   |   |   |   | - |   |   |   | 1,142 |   |   |   | 1,074,762 |   |
|   Operating      income (loss)         |   |                   | 13,261,809  |   |   |   | (329,113 | ) |   |   | (1,849,988 | ) |   |   | 11,082,708 |   |
|                                             |   |                   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                |   | $                      | 42,077,819  |   |   | $ | 40,983,945 |   |   |   | 1,159,001 |   |   | $ | 84,220,765 |   |
|                                             |   |                   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                           |   | Year      ended December 31, |    |
|--------------------------------|--------|------------------------------|---------|
|                           |   | 2009                         |    |   | 2008 |   |   | 2007 |   |
|                           |   |                         |    |   | (restated) |   |   |   |   |
| Revenues                       |   |                         |    |   |   |   |   |   |   |
|   United      States |   | $                            | 117,587 |   |   | $ | 154,630 |   |   | $ | 108,638 |   |
|                           |   |                         |    |   |   |   |   |   |   |   |   |   |
| Long-lived      assets         |   |                         |    |   |   |   |   |   |   |   |   |   |
|   United      States |   | $                            | 32,996  |   |   | $ | 33,123 |   |   | $ | 20,851 |   |
|   Saudi      Arabia  |   |                         | -       |   |   |   | - |   |   |   | 39,899 |   |
|                           |   | $                            | 32,996  |   |   | $ | 33,123 |   |   | $ | 60,750 |   |
|                           |   |                         |    |   |   |   |   |   |   |   |   |   |
| Investment      in AMAK        |   | $                            | 31,146  |   |   | $ | 31,146 |   |   | $ | - |   |

|                                                             |   | Year      ended December 31, |       |
|------------------------------------------------------------------|--------|------------------------------|------------|
|                                                             |   | 2009                         |       |   | 2008 |   |   | 2007 |   |
|                                                             |   |                         |       |   | (restated) |   |   |   |   |
| Net      income (loss)                                           |   | $                            | 6,627,451  |   |   | $ | (10,731,165 | ) |   | $ | 7,711,381 |   |
|                                                             |   |                         |       |   |   |   |   |   |   |   |   |   |
| Basic      earnings (loss) per common share:                     |   |                         |       |   |   |   |   |   |   |   |   |   |
|     Weighted      average shares outstanding |   |                         | 23,727,995 |   |   |   | 23,409,458 |   |   |   | 22,895,394 |   |
|                                                             |   |                         |       |   |   |   |   |   |   |   |   |   |
|     Per      share amount                    |   | $                            | 0.28       |   |   | $ | (0.46 | ) |   | $ | 0.34 |   |
|                                                             |   |                         |       |   |   |   |   |   |   |   |   |   |
| Diluted      earnings (loss) per common share:                   |   |                         |       |   |   |   |   |   |   |   |   |   |
|     Weighted      average shares outstanding |   |                         | 23,800,449 |   |   |   | 23,409,458 |   |   |   | 23,291,669 |   |
|                                                             |   |                         |       |   |   |   |   |   |   |   |   |   |
|     Per      share amount                    |   | $                            | 0.28       |   |   | $ | (0.46 | ) |   | $ | 0.33 |   |

|                                                                                      |   | Year      ended December 31, |       |
|-------------------------------------------------------------------------------------------|--------|------------------------------|------------|
|                                                                                      |   | 2009                         |       |   | 2008 |   |   | 2007 |   |
| Weighted      average shares-denominator  basic      computation                |   |                         | 23,727,995 |   |   |   | 23,409,458 |   |   |   | 22,895,394 |   |
| Effect      of dilutive stock options                                                     |   |                         | 72,454     |   |   |   | - |   |   |   | 396,275 |   |
| Weighted      average shares, as adjusted  denominator      diluted computation |   |                         | 23,800,449 |   |   |   | 23,409,458 |   |   |   | 23,291,669 |   |

----

|                     |   | Year      Ended December 31, 2009 |   |
|--------------------------|--------|-----------------------------------|--------|
|                     |   | FirstQuarter                      |   |   | SecondQuarter |   |   | ThirdQuarter |   |   | FourthQuarter |   |   | Total |   |
|                     |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                 |   | $                                 | 27,397 |   |   | $ | 28,585 |   |   | $ | 30,648 |   |   | $ | 30,957 |   |   | $ | 117,587 |   |
| Gross      profit (loss) |   |                              | 8,962  |   |   |   | 6,426 |   |   |   | 4,294 |   |   |   | 2,216 |   |   |   | 21,898 |   |
| Net      income (loss)   |   |                              | 4,173  |   |   |   | 2,564 |   |   |   | 528 |   |   |   | (638 | ) |   |   | 6,627 |   |
| Basic      EPS           |   | $                                 | 0.18   |   |   | $ | 0.11 |   |   | $ | 0.02 |   |   | $ | (0.03 | ) |   | $ | 0.28 |   |
| Diluted      EPS         |   | $                                 | 0.18   |   |   | $ | 0.11 |   |   | $ | 0.02 |   |   | $ | (      0.03 | ) |   | $ | 0.28 |   |

|                     |   | Year      Ended December 31, 2008 |   |
|--------------------------|--------|-----------------------------------|--------|
|                     |   | FirstQuarter                      |   |   | SecondQuarter |   |   | ThirdQuarter |   |   | FourthQuarter |   |   | Total |   |
|                     |   |                              |   |   |   |   |   |   |   |   | (restated) |   |   | (restated) |   |
| Revenues                 |   | $                                 | 31,234 |   |   | $ | 42,611 |   |   | $ | 47,742 |   |   | $ | 33,043 |   |   | $ | 154,630 |   |
| Gross      profit (loss) |   |                              | 4,878  |   |   |   | 6,846 |   |   |   | (9,110 | ) |   |   | (7,211 | ) |   |   | (4,597 | ) |
| Net      income (loss)   |   |                              | 1,416  |   |   |   | 3,172 |   |   |   | (6,931 | ) |   |   | (8,388 | ) |   |   | (10,731 | ) |
| Basic      EPS           |   | $                                 | 0.06   |   |   | $ | 0.14 |   |   | $ | (0.30 | ) |   | $ | (0.36 | ) |   | $ | (0.46 | ) |
| Diluted      EPS         |   | $                                 | 0.06   |   |   | $ | 0.13 |   |   | $ | (0.30 | ) |   | $ | (      0.36 | ) |   | $ | (0.46 | ) |

| Fourth      Quarter ended December 31, 2008 |   |
|---------------------------------------------|--------|
|                                        |   | As      Reported |   |   | As      Restated |   |   | Difference* |   |
| Revenues                                    |   | $ | 33,043 |   |   | $ | 33,043 |   |   | $ | - |   |
| Gross      profit (loss)                    |   |   | (7,211 | ) |   |   | (7,211 | ) |   |   | - |   |
| Net      income (loss)                      |   |   | (6,532 | ) |   |   | (8,388 | ) |   |   | (1,856 | ) |
| Basic      EPS                              |   | $ | (0.28 | ) |   | $ | (0.36 | ) |   | $ | (0.08 | ) |
| Diluted      EPS                            |   | $ | (      0.28 | ) |   | $ | (      0.36 | ) |   | $ | (0.08 | ) |

----

|   | NOTE      20 – DERIVATIVE INSTRUMENTS |
|--------|---------------------------------------------|

----

|                                  |   | December 31, |   |
|---------------------------------------|--------|--------------|--------|
|                                  |   | 2009         |   |   | 2008 |   |   | 2007 |   |
|                                  |   |         |   |   |   |   |   |   |   |
| Realized      gain (loss)             |   | $            | (5,856 | ) |   | $ | 1,721 |   |   | $ | 3,367 |   |
| Write      off of derivative premiums |   |         | -      |   |   |   | (14,103 | ) |   |   | - |   |
| Unrealized      gain (loss)           |   |         | 6,976  |   |   |   | (6,793 | ) |   |   | 973 |   |
| Net      gain (loss)                  |   | $            | 1,120  |   |   | $ | (19,175 | ) |   | $ | 4,340 |   |

|                                    |   | December      31, |   |
|-----------------------------------------|--------|-------------------|--------|
|                                    |   | 2009              |   |   | 2008 |   |
|                                    |   |              |   |   |   |   |
| Fair      value of derivative liability |   | $                 | -      |   |   | $ | 6,976 |   |

----

|                                                                             |   | December 31, |   |
|----------------------------------------------------------------------------------|--------|--------------|--------|
|                                                                             |   | 2009         |   |   | 2008 |   |   | 2007 |   |
| Other      Comprehensive Loss                                                    |   |         |   |   |   |   |   |   |   |
| Cumulative      loss                                                             |   | $            | (1,275 | ) |   | $ | (1,697 | ) |   | $ | - |   |
| Deferred      tax benefit                                                        |   |         | 434    |   |   |   | 577 |   |   |   | - |   |
| Net      cumulative loss                                                         |   | $            | (841   | ) |   | $ | (1,120 | ) |   | $ | - |   |
|                                                                             |   |         |   |   |   |   |   |   |   |   |   |   |
| Interest      expense reclassified from other  comprehensive      loss |   | $            | 510    |   |   | $ | 93 |   |   | $ | - |   |

|                                    |   | December      31, |   |
|-----------------------------------------|--------|-------------------|--------|
|                                    |   | 2009              |   |   | 2008 |   |
|                                    |   |              |   |   |   |   |
| Fair      value of derivative liability |   | $                 | 1,275  |   |   | $ | 1,697 |   |

----

|   | In      June 2009 the Company’s Board of Directors awarded Mr. El Khalidi a      retirement bonus in the amount of $31,500 for 42 years of faithful      service.  This amount was outstanding at December 31, 2009, and      was included in post retirementbenefits. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Description                                 |   | Beginningbalance |      |   | Charged(credited)to earnings |   |     | Deductions(a) |   |   | Endingbalance |   |
|---------------------------------------------|--------|------------------|-----------|--------|------------------------------|--------|----------|---------------|--------|--------|---------------|--------|
| ALLOWANCE FOR DEFERRED  TAX ASSET |   |             |      |   |                         |   |     |          |   |   |          |   |
|                                        |   |             |      |   |                         |   |     |          |   |   |          |   |
| December      31, 2007                      |   |             | 1,336,451 |   |                         |   | (108,361 | )             |   |   | -             |   |   |   | 1,228,090 |   |
| December      31, 2008, restated            |   |             | 1,228,090 |   |                         |   | 631,125  |          |   |   | -             |   |   |   | 1,859,215 |   |
| December      31, 2009                      |   |             | 1,859,215 |   |                         |   | 365,293  |          |   |   | -             |   |   |   | 2,224,508 |   |

| Description                                |   | Beginningbalance |    |   | Chargedto earnings |   |    | Deductions |   |   | Endingbalance |   |
|--------------------------------------------|--------|------------------|---------|--------|--------------------|--------|---------|------------|--------|--------|---------------|--------|
| ALLOWANCE FOR DOUBTFUL  ACCOUNTS |   |             |    |   |               |   |    |       |   |   |          |   |
|                                       |   |             |    |   |               |   |    |       |   |   |          |   |
| December      31, 2007                     |   |             | 35,000  |   |               |   | -       |       |   |   | -             |   |   |   | 35,000 |   |
| December      31, 2008                     |   |             | 35,000  |   |               |   | 465,000 |       |   |   | -             |   |   |   | 500,000 |   |
| December      31, 2009                     |   |             | 500,000 |   |               |   | 111,154 |       |   |   | (484,654      | )      |   |   | 126,500 |   |

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