| 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.)  |
|-------------------------------------------------------------------------------|-----------------------------------------------------|
| 1600 Hwy 6 S, Suite 240Sugar Land, TX(Address of principal executive offices) | 77478(Zip code)                                     |

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|  PART I                                                                                                                                                |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| EXPLANATORY NOTE                                                                                                                                            |  1 |
|                                                                                                                                                        |   |
| ITEM 1.   BUSINESS                                                                                                                           |   |
|                                                                                                                                                        | General | 2 |
|                                                                                                                                                        | United States Activities | 2 |
|                                                                                                                                                        | European Activities | 2 |
|                                                                                                                                                        | Saudi Arabia Activities | 2 |
|                                                                                                                                                        | Investment In AMAK | 3 |
|                                                                                                                                                        | Environmental | 11 |
|                                                                                                                                                        | Personnel | 13 |
|                                                                                                                                                        | Competition | 13 |
|                                                                                                                                                        | Available Information | 14 |
|                                                                                                                                                        |   |   |
| ITEM 1A.  RISK FACTORS                                                                                                                            | 14 |
|                                                                                                                                                        |   |   |
| ITEM 1B.  UNRESOLVED STAFF COMMENTS                                                                                                               | 20 |
|                                                                                                                                                        |   |   |
| ITEM 2.   PROPERTIES                                                                                                                         |   |
|                                                                                                                                                        | United States Specialty Products Facility | 20 |
|                                                                                                                                                        | United States Mineral Interests | 21 |
|                                                                                                                                                        | Offices | 22 |
|                                                                                                                                                        |   |   |
| ITEM 3.   LEGAL PROCEEDINGS                                                                                                                  | 22 |
|                                                                                                                                                        |   |   |
| ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                                                | 22 |
|                                                                                                                                                        |   |   |
|                                                                                                                                                        |  PART II  |   |
| ITEM 5.   MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER  MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES | 23 |
|                                                                                                                                                        |   |   |
| ITEM 6.   SELECTED FINANCIAL DATA                                                                                                            | 24 |
|                                                                                                                                                        |   |   |
| ITEM 7.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND  RESULTS OF OPERATION                   |   |
|                                                                                                                                                        | Overview | 24 |
|                                                                                                                                                        | Business Environment & Risk Assessment | 25 |
|                                                                                                                                                        | Liquidity and Capital Resources | 25 |
|                                                                                                                                                        | Results of Operations | 29 |
|                                                                                                                                                        | New Accounting Standards | 34 |
|                                                                                                                                                        | Critical Accounting Policies | 35 |
|                                                                                                                                                        |   |   |
| ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                                                         | 37 |
|                                                                                                                                                        |   |   |
| ITEM 8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                                                                                  | 37 |
|                                                                                                                                                        |   |   |
| ITEM 9.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE                                    | 37 |
|                                                                                                                                                        |   |   |
| ITEM 9A.  CONTROLS AND PROCEDURES                                                                                                                 | 38 |
|                                                                                                                                                        |   |   |
| ITEM 9B.  OTHER INFORMATION                                                                                                                       | 38 |
|                                                                                                                                                        |   |   |
|                                                                                                                                                        | PART III  |   |
| ITEM 10.   DIRECTORS, EXECUTIVE OFFICERS OF THE REGISTRANT                                                                                   | 39 |
|                                                                                                                                                        |   |   |
| ITEM 11.   EXECUTIVE COMPENSATION                                                                                                            | 42 |

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|                                                                                                                          |          |   |
|-------------------------------------------------------------------------------------------------------------------------------|---------------|--------|
| ITEM 12.   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS | 52            |
|                                                                                                                          |          |   |
| ITEM 13.   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE                            | 54            |
|                                                                                                                          |          |   |
| ITEM 14.   PRINCIPAL ACCOUNTING FEES AND SERVICES                                                              | 56            |
|                                                                                                                          |          |   |
|                                                                                                                          | PART IV  |   |
| ITEM 15.   EXHIBITS, FINANCIAL STATEMENT SCHEDULES                                                             | 57            |

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|   | • |   | Part I—Item 1—Business—Investment in AMAK—Description of Current Condition |   |
|--------|---------|--------|----------------------------------------------------------------------------------------------------|--------|
|   |    |   |                                                                                               |   |
|   | • |   | Part I—Item 1—Business—Investment in AMAK—Cash Flows from AMAK             |   |
|   |    |   |                                                                                               |   |
|   | • |   | Part I—Item 1—Environmental                                                            |   |

|   | • |   | Part I—Item 1A.—Risk Factors—Guaranteeing Performance by Third Parties |
|--------|---------|--------|------------------------------------------------------------------------------------------|
|   |    |   |                                                                                     |
|   | • |   | Part I—Item 1A.—Risk Factors—Inability to Recoup Investment in AMAK    |
|   |    |   |                                                                                     |
|   | • |   | Part I—Item 1B.—Unresolved Staff Comments                                    |

|   | • |   | Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Credit Agreement                               |   |
|--------|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |    |   |                                                                                                                                                                                                              |   |
|   | • |   | Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—General Corporate Expenses—Contractual Obligations |   |
|   |    |   |                                                                                                                                                                                                              |   |
|   | • |   | Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Investment in AMAK                                                                   |   |

|   | • |   | Part III—Item 10—Directors and Executive Officers of the Registrant |
|--------|---------|--------|---------------------------------------------------------------------------------|

|   | • |   | Part III—Item 11—Executive Compensation                                                                                                                                    |
|--------|---------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |   |                                                                                                                                                                                   |
|   | • |   | Part III—Item 13—Certain Relationships and Related Transactions and Director Independence—Review, Approval or Ratification of Transaction with Management and Others |

|   | • |   | Part IV—Item 15—Exhibits and Financial Statement Schedules [Note 8] |
|--------|---------|--------|---------------------------------------------------------------------------------|

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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, |
|---------|----------------------|

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| • | 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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| • | 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 restructuring programs; |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | 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 and procedures; |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | 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 and regulations; |
|---------|-----------------------------------------|

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

| • | Changes in the regulatory or legal environment; |
|---------|-------------------------------------------------|

| • | Differing technology standards or customer requirements; |
|---------|----------------------------------------------------------|

| • | 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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|  Name               | Age as ofDecember 31, 2009 |  Title (Held Office Since)                    |
|--------------------------|----------------------------|----------------------------------------------------|
| 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)                    |

|                                   |   | 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 |   |
|                                   |   |   |   |   |   |   |   |   |

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|                                               |   | 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  |   |

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| • | 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-dam area. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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|                                        |   | 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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| Level | Leverage Ratio                                         | Applicable Margin for Base Rate Loans | Applicable Margin for LIBOR Loans | Applicable Margin for Commitment Fee |
|-------|--------------------------------------------------------|---------------------------------------|-----------------------------------|--------------------------------------|
| I     | Greater than or equal to 1.5:1.0                       | (0.50%)                               | 2.00%                             | 0.25%                                |
| II    | Less than 1.5:1.0 but greater than or equal to 1.0:1.0 | (0.75%)                               | 1.75%                             | 0.25%                                |
| III   | Less than 1.0:1.0                                      | (1.00%)                               | 1.50%                             | 0.25%                                |

| ● | Delivery of financial statements and SEC filings;                                  |
|---------|------------------------------------------------------------------------------------|
|    |                                                                               |
| ● | Maintenance of properties and insurance;                                           |
|    |                                                                               |
| ● | Compliance with laws;                                                              |
|    |                                                                               |
| ● | Receipt of guarantees from any new subsidiary to guarantee and secure obligations; |
|    |                                                                               |
| ● | Prohibiting the disposition of assets and changing material lines of business;     |
|    |                                                                               |
| ● | Changing its method of accounting or policies;                                     |

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|    |                                                                                                                   |
|---------|------------------------------------------------------------------------------------------------------------------------|
| ● | Restricting certain payments, including dividends;                                                                     |
|    |                                                                                                                   |
| ● | Use of loan proceeds only for certain purposes;                                                                        |
|    |                                                                                                                   |
| ● | Payment of all insurance and eminent domain proceeds to Bank of America;                                               |
|    |                                                                                                                   |
| ● | Limiting the occurrence of liens, certain investments, and/or subsidiary indebtedness (subject to certain exceptions); |
|    |                                                                                                                   |
| ● | Payment on demand of all reasonable costs, expenses and fees incurred by Bank of America; and                          |
|    |                                                                                                                   |
| ● | Restricting extension of credit other than for certain permitted exceptions;                                           |

| ● | Maintaining a minimum EBITDA of $8.5 million at end of each trailing four fiscal quarter period;                      |
|---------|-----------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                  |
| ● | Maintaining a maximum leverage ratio of 2.0:1.0 measured at end of each fiscal quarter;                               |
|    |                                                                                                                  |
| ● | Prohibition of unfinanced capital expenditures in excess of $4.0 million for trailing four fiscal quarter period; and |
|    |                                                                                                                  |
| ● | Limitations on dividends paid to the parent company of 30% of EDITDA.                                                 |

| ● | failure to pay principal, interest or other amounts due and payable;                                                        |
|---------|-----------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                        |
| ● | failure to maintain compliance with the financial covenants and other covenants contained in the Restated Credit Agreement; |
|    |                                                                                                                        |
| ● | default on certain of our other indebtedness;                                                                               |
|    |                                                                                                                        |
| ● | breach of a representation or warranty;                                                                                     |
|    |                                                                                                                        |
| ● | the existence of bankruptcy or insolvency proceedings;                                                                      |
|    |                                                                                                                        |
| ● | the entry of certain judgments against South Hampton and its subsidiaries;                                                  |
|    |                                                                                                                        |
| ● | the invalidity of any loan document; and                                                                                    |
|    |                                                                                                                        |
| ● | upon a change of control.                                                                                                   |

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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 | % |

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|                       |   | 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                        |

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| 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 |

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|   | •  attract and retain talented executives by providing reasonable total compensation levels competitive with that of executives holding comparable positions in similarly situated organizations; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •  provide performance–based compensation that balances rewards for short–term and long–term results and is tied to both individual and the Company’s performance; and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •  encourage the long–term commitment of our executives to the Company and its shareholders’ long–term interests. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | What the Compensation Programs are Designed to Reward |
|--------|-------------------------------------------------------|

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|   |           | CrosstexEnergy |      | Global Partners |   | Rentech   |   | KMGChemicals |    | Syntroleum |   | Penford |   | Adams Resources |    | Synthesis Energy |   | American Pacific |   | Sulphco |    | Sterling Chemicals |   |    | Average |   |    | Arabian American |   |    | Difference |   |
|--------|----------------|----------------|-----------|-----------------|--------|-----------|--------|--------------|---------|------------|--------|---------|--------|-----------------|---------|------------------|--------|------------------|--------|---------|---------|--------------------|--------|---------|---------|--------|---------|------------------|--------|---------|------------|--------|
|   |           |           |      |            |   |      |   |         |    |       |   |    |   |            |    |             |   |             |   |    |    |               |   |    |    |   |    |             |   |    |       |   |
| CEO    | Salary         | $              | 435,000   |            | $      | 800,000   |   | $            | 417,500 |       | $      | 339,454 |   | $               | 260,000 |             | $      | 550,000          |   | $       | 399,807 |               | $      | 270,000 |    | $      | 495,045 |             | $      | 300,000 |       | $      | 411,667 |   |   | $ | 425,316 |   |   | $ | 234,837 |   |   | $ | (190,479 | ) |
|   | Bonus          | $              | 435,000   |            | $      | 0         |   | $            | 452,520 |       | $      | 500     |   | $               | 0       |             | $      | 0                |   | $       | 77,000  |               | $      | 146,000 |    | $      | 0       |             | $      | 0       |       | $      | 0 |   |   | $ | 101,002 |   |   | $ | 60,000 |   |   | $ | (41,002 | ) |
|   | Profit sharing | $              | 0         |            | $      | 0         |   | $            | 0       |       | $      | 0       |   | $               | 0       |             | $      | 0                |   | $       | 0       |               | $      | 0       |    | $      | 0       |             | $      | 0       |       | $      | 0 |   |   | $ | 0 |   |   | $ | 42,552 |   |   | $ | 42,552 |   |
|   | Stock awards   | $              | 1,117,712 |            | $      | 1,147,261 |   | $            | 411,175 |       | $      | 88,981  |   | $               | 0       |             | $      | 328,786          |   | $       | 0       |               | $      | 0       |    | $      | 56,250  |             | $      | 0       |       | $      | 0 |   |   | $ | 286,379 |   |   | $ | 0 |   |   | $ | (286,379 | ) |
|   | Option awards  | $              | 0         |            | $      | 0         |   | $            | 161,924 |       | $      | 29,455  |   | $               | 0       |             | $      | 311,104          |   | $       | 0       |               | $      | 686,437 |    | $      | 110,988 |             | $      | 77,706  |       | $      | 0 |   |   | $ | 125,238 |   |   | $ | 0 |   |   | $ | (125,238 | ) |
|   | Other          | $              | 45,327    |            | $      | 80,313    |   | $            | 30,630  |       | $      | 11,516  |   | $               | 11,000  |             | $      | 45,921           |   | $       | 27,700  |               | $      | 0       |    | $      | 27,916  |             | $      | 7,350   |       | $      | 21,563 |   |   | $ | 28,112 |   |   | $ | 14,090 |   |   | $ | (14,022 | ) |
|   |           |           |      |            |   |      |   |         |    |       |   |    |   |            |    |             |   |             |   |    |    |               |   |    |    |   |    |             |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CFO    | Salary         | $              | 315,000   |            | $      | 578,000   |   | $            | 296,500 |       | $      | 193,345 |   | $               | 175,000 |             | $      | 345,000          |   | $       | 193,154 |               | $      | 155,000 |    | $      | 210,738 |             | $      | 250,000 |       | $      | 199,436 |   |   | $ | 264,652 |   |   | $ | 142,208 |   |   | $ | (122,444 | ) |
|   | Bonus          | $              | 315,000   |            | $      | 115,000   |   | $            | 249,480 |       | $      | 500     |   | $               | 0       |             | $      | 0                |   | $       | 30,000  |               | $      | 62,000  |    | $      | 0       |             | $      | 0       |       | $      | 0 |   |   | $ | 70,180 |   |   | $ | 30,000 |   |   | $ | (40,180 | ) |
|   | Profit sharing | $              | 0         |            | $      | 0         |   | $            | 0       |       | $      | 0       |   | $               | 0       |             | $      | 0                |   | $       | 0       |               | $      | 0       |    | $      | 0       |             | $      | 0       |       | $      | 0 |   |   | $ | 0 |   |   | $ | 32,715 |   |   | $ | 32,715 |   |
|   | Stock awards   | $              | 983,587   |            | $      | 803,081   |   | $            | 91,590  |       | $      | 45,480  |   | $               | 0       |             | $      | 164,393          |   | $       | 0       |               | $      | 0       |    | $      | 24,964  |             | $      | 0       |       | $      | 0 |   |   | $ | 192,100 |   |   | $ | 0 |   |   | $ | (192,100 | ) |
|   | Option awards  | $              | 0         |            | $      | 0         |   | $            | 0       |       | $      | 0       |   | $               | 0       |             | $      | 201,185          |   | $       | 0       |               | $      | 64,101  |    | $      | 30,260  |             | $      | 9,010   |       | $      | 0 |   |   | $ | 27,687 |   |   | $ | 0 |   |   | $ | (27,687 | ) |
|   | Other          | $              | 37,120    |            | $      | 40,184    |   | $            | 62,628  |       | $      | 6,093   |   | $               | 11,000  |             | $      | 21,488           |   | $       | 13,589  |               | $      | 0       |    | $      | 17,103  |             | $      | 7,350   |       | $      | 42,100 |   |   | $ | 23,514 |   |   | $ | 8,533 |   |   | $ | (14,981 | ) |
|   |           |           |      |            |   |      |   |         |    |       |   |    |   |            |    |             |   |             |   |    |    |               |   |    |    |   |    |             |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| VP     | Salary         | $              | 285,000   |            | $      | 376,000   |   | $            | 351,500 |       | $      | 210,684 |   |            |    |             | $      | 260,000          |   | $       | 245,336 |               | $      | 180,000 |    | $      | 251,849 |             | $      | 225,000 |       | $      | 220,100 |   |   | $ | 236,861 |   |   | $ | 227,500 |   |   | $ | (9,361 | ) |
|   | Bonus          | $              | 385,000   |            | $      | 50,000    |   | $            | 158,175 |       | $      | 500     |   |            |    |             | $      | 0                |   | $       | 47,250  |               | $      | 72,000  |    | $      | 0       |             | $      | 0       |       | $      | 0 |   |   | $ | 64,811 |   |   | $ | 40,000 |   |   | $ | (24,811 | ) |
|   | Profit sharing | $              | 0         |            | $      | 0         |   | $            | 0       |       | $      | 0       |   |            |    |             | $      | 0                |   | $       | 0       |               | $      | 0       |    | $      | 0       |             | $      | 0       |       | $      | 0 |   |   | $ | 0 |   |   | $ | 32,652 |   |   | $ | 32,652 |   |
|   | Stock awards   | $              | 983,587   |            | $      | 630,998   |   | $            | 274,961 |       | $      | 49,295  |   |            |    |             | $      | 109,595          |   | $       | 0       |               | $      | 0       |    | $      | 24,964  |             | $      | 0       |       | $      | 0 |   |   | $ | 188,491 |   |   | $ | 0 |   |   | $ | (188,491 | ) |
|   | Option awards  | $              | 0         |            | $      | 0         |   | $            | 84,201  |       | $      | 0       |   |            |    |             | $      | 161,314          |   | $       | 0       |               | $      | 0       |    | $      | 15,130  |             | $      | 0       |       | $      | 0 |   |   | $ | 23,695 |   |   | $ | 0 |   |   | $ | (23,695 | ) |
|   | Other          | $              | 32,370    |            | $      | 48,963    |   | $            | 40,525  |       | $      | 7,423   |   |            |    |             | $      | 26,573           |   | $       | 11,364  |               | $      | 0       |    | $      | 10,958  |             | $      | 7,350   |       | $      | 14,872 |   |   | $ | 18,218 |   |   | $ | 13,650 |   |   | $ | (4,568 | ) |

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| Name andPrincipal Position                                                                                                                 | Year       |   | Salary($) |    |   | Bonus($)(1) |   |   | StockAward(s)($) |   |   | Option Award(s)($)(2) |   |   | Non-EquityIncentive PlanCompensation($) |    |   | Change in Pension Value and Non-Qualified Deferred Compensation Earnings($) |   |   | All OtherCompensation($) (3)(4)(5)(6) |   |   | Total($) |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|------------|--------|-----------|---------|--------|-------------|--------|--------|------------------|--------|--------|-----------------------|--------|--------|-----------------------------------------|---------|--------|-----------------------------------------------------------------------------|--------|--------|---------------------------------------|--------|--------|----------|--------|
| 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 |   |        | $      | 60,000 |             |   |   | --                    |   |   |                                    | --      |   |                                                                        |   | --     |                                  |   |   | --       |   |   | $ | 56,642 |   |   | $ | 351,479 |   |
| 2008                                                                                                                                       |       | $      | 209,918   |    |   |        | --     |   |             | $      | 99,800 |                  |   |   | --                                      |    |   |                                                                        | --     |   |                                  |   | --     |     |   | $ | 41,260 |   |   | $ | 350,978 |   |
| 2007                                                                                                                                       |       | $      | 172,059   |    |   | $           | 50,000 |   |             | $      | 66,000 |                  |   |   | --                                      |    |   |                                                                        | --     |   |                                  |   | --     |     |   | $ | 56,830 |   |   | $ | 344,889 |   |
| Connie J. CookChief Accounting Officer                                                                                                     |  2009 |   | $         | 142,208 |   |        | $      | 30,000 |             |   |   | --                    |   |   |                                    | --      |   |                                                                        |   | --     |                                  |   |   | --       |   |   | $ | 41,248 |   |   | $ | 213,456 |   |
| 2008                                                                                                                                       |       | $      | 133,009   |    |   |        | --     |   |             | $      | 49,900 |                  |   |   | --                                      |    |   |                                                                        | --     |   |                                  |   | --     |     |   | $ | 34,124 |   |   | $ | 217,033 |   |
| 2007                                                                                                                                       |       | $      | 108,500   |    |   | $           | 25,000 |   |             | $      | 33,000 |                  |   |   | --                                      |    |   |                                                                        | --     |   |                                  |   | --     |     |   | $ | 51,595 |   |   | $ | 218,095 |   |
| Mark D. WilliamsonVice President of Marketing, Petrochemical Company                                                                       | 2009       |   | $         | 227,500 |   |        | $      | 40,000 |             |   |   | --                    |   |   |                                    | --      |   |                                                                        |   | --     |                                  |   |   | --       |   |   | $ | 46,302 |   |   | $ | 313,802 |   |
| 2008                                                                                                                                       |       | $      | 240,705   |    |   |        | --     |   |             | $      | 49,900 |                  |   |   | --                                      |    |   |                                                                        | --     |   |                                  |   | --     |     |   | $ | 40,585 |   |   | $ | 331,190 |   |
| 2007                                                                                                                                       |       | $      | 190,393   |    |   | $           | 25,000 |   |             |   | --     |                  |   |   | --                                      |    |   |                                                                        | --     |   |                                  |   | --     |     |   | $ | 56,447 |   |   | $ | 271,840 |   |
| Gerardo Maldonado,Account Representative,PetrochemicalCompany                                                                              | 2009       |   | $         | 192,543 |   |        |   | --     |             |   |   | --                    |   |   |                                    | --      |   |                                                                        |   | --     |                                  |   |   | --       |   |   | $ | 35,990 |   |   | $ | 228,533 |   |
| 2008                                                                                                                                       |       | $      | 179,158   |    |   |        | --     |   |             |   | --     |                  |   |   | --                                      |    |   |                                                                        | --     |   |                                  |   | --     |     |   | $ | 25,389 |   |   | $ | 204,547 |   |
| 2007                                                                                                                                       |       | $      | 142,443   |    |   |        | --     |   |             |   | --     |                  |   |   | --                                      |    |   |                                                                        | --     |   |                                  |   | --     |     |   | $ | 32,873 |   |   | $ | 175,316 |   |
| Marvin KaufmanManager ofManufacturing,PetrochemicalCompany                                                                                 | 2009       |   | $         | 130,532 |   |        |   | --     |             |   |   | --                    |   |   |                                    | --      |   |                                                                        |   | --     |                                  |   |   | --       |   |   | $ | 29,742 |   |   | $ | 160,274 |   |
| 2008                                                                                                                                       |       | $      | 122,603   |    |   |        | --     |   |             |   | --     |                  |   |   | --                                      |    |   |                                                                        | --     |   |                                  |   | --     |     |   | $ | 20,466 |   |   | $ | 143,069 |   |
| 2007                                                                                                                                       |       | $      | 112,534   |    |   |        | --     |   |             |   | --     |                  |   |   | --                                      |    |   |                                                                        | --     |   |                                  |   | --     |     |   | $ | 28,278 |   |   | $ | 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 on demand.                                                                                                                                           |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  (2) | Restricted stock option awards include the aggregate grant date fair value of such awards granted in the fiscal year indicated computed in accordance with ASC 718.  For a discussion of the assumptions we made in valuing the stock and option awards, see “Note 1—Significant Accounting Policies—Share-Based Compensation” and “Note 14—Share-Based Compensation” in the notes to our consolidated financial statements contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2009.  |
| (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.                                                                                                                                                                                                                             |

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| (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 executives that were contributed on the employee’s behalf into the Company’s 401(k) plan.  Mr. El-Khalidi did not participate in the Company’s 401(k) plan.                                                                                                                                                                                                                                                                                                                                       |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6) | Includes $42,552, $28,665, and $46,506 in profit sharing for each of the fiscal years ended for Nicholas N. Carter; $32,715, $26,143, and $45,085 in profit sharing for each of the fiscal years ended for Connie J. Cook; $32,652, $26,143, and $45,023 in profit sharing for each of the fiscal years ended for Mark D. Williamson; $24,437, $14,640, and $24,327 in profit sharing for each of the fiscal years ended for Gerardo Maldonado; and $21,910, $13,110 and $21,526 in profit sharing for each of the fiscal years ended for Marvin Kaufman.” |

|                       |           | 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 |
| HatemEl Khalidi       | 07/02/09       |                                                            |                                                        |       |         |      |       |                                                                           |   |                                                 | 200,000 |   |                             | $      | 3.40 |   |   | $ | 3.40 |   |   |
|  HatemEl 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 terminates and is 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 terminates and is immediately forfeited if not exercised on or before June 30, 2019. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                                                                                | Plan name                |   | Number of years credited service |   |   | Present value of accumulated benefit($) |   |    | Payments during last year ($) |   |
|-------------------------------------------------------------------------------------|--------------------------|--------|----------------------------------|--------|--------|-----------------------------------------|--------|---------|------------------------------------|--------|
| Hatem El KhalidiPresident and Chief Executive Officer until June 30, 2009, Director | Retirement Agreement (1) |   |                             | 42     |   |                                    | $      | 851,000 |                               |   | $ | 0 |   |
| Retirement Agreement (2)                                                            |                     |   | 42                               |   |   | $                                       | 31,500 |    |                               | $      | 0 |   |
| Saudi Arabian Termination Benefits (3)                                              |                     |   | 42                               |   |   | $                                       | 42,876 |    |                               | $      | 277,124 |   |
| Total                                                                               |                     |   |                             |   |   |                                    | $      | 925,376 |                               |   | $ | 277,124 |   |

----

|   | (1) | In January 2008 the retirement agreement entered into in February 2007 with Mr. El Khalidi, then president of the Company, was modified.  The new agreement provides for $6,000 per month in benefits to Mr. El Khalidi upon his retirement for the remainder of his life.  Additionally, upon his death $4,000 per month will be paid to his surviving spouse for the remainder of her life.  A health insurance benefit is also provided.  An additional $382,000 was accrued in January 2008 for the increase in benefits.  A short-term liability of $36,000 is included in accrued liabilities and a long-term liability of approximately $815,000 based upon an annuity single premium value contract was outstanding as of December 31, 2009, and is included in post retirement benefits. Assumptions used for the amortization of post retirement benefits were a life expectancy of 6.8 years for Mr. El Khalidi and 15.8 years for Ms. El Khalidi with a discount rate of 1.62%.  Life expectancies were taken from the 2004 Life Table for the total U.S. population as published under the National Vital Statistics Reports.  In June 2009 the Company’s Board of Directors voted to amend the retirement benefit by allowing a yearly cost of living adjustment to be applied to the agreement based upon the Consumer Price Index which is published annually.  Expense recognized in relation to this adjustment was approximately $21,000 based upon the Consumer Price Index published on January 15, 2010, of 2.7%.  See NOTE 21 – POST RETIREMENT OBLIGATIONS on page F-36 in our annual report on Form 10-K. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | While there is no written policy regarding retirement bonus compensation, the Company has historically awarded all employees (regardless of job position) a retirement bonus equal to $750 for each year of service.  Since Mr. El Khalidi was employed by the Company for 42 years, the Board of Directors voted to award him a $31,500 retirement bonus, consistent with that provided to all other retired employees. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Employer termination benefits required by the Saudi Labor and Workman Law provide for termination benefits equal to one-half month’s total compensation for each year of service for the first five years and one month’s total compensation for each subsequent year of service.  Since Mr. El Khalidi was employed by the Company in Saudi Arabia for 42 years, under Saudi law the total accrued termination benefits due were $320,000 of which approximately $43,000 remained outstanding to Mr. El Khalidi as of December 31, 2009. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|            |   | 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.                                                                                                                                                                                                                        |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (4)    | Stock option awards include the aggregate grant date fair value of such awards granted in the fiscal year indicated computed in accordance with ASC 718. For a discussion of the assumptions we made in valuing the stock and option awards, see “Note 1—Significant Accounting Policies—Share-Based Compensation” and “Note 14—Share-Based Compensation” in the notes to our consolidated financial statements contained herein. |

|                    |   | 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($) |   | Option Expiration date | Number of Shares or units of stock that have not vested(#) | Market value of shares or unites of stock that have not vested(#) | Equity incentive plan awards: number of unearned shares, units or other rights that have not vested (#) | Equity incentive plan awards: market or payout value of unearned shares, units or other rights that have not vested($) |
| Ghazi Sultan            |   |                                                               | 7,000        |   |   |   | -- |   |   |   | -- |   |   | $ | 1.39 |   | 01/01/19 |   |   |   |   |
| Mohammed Al Omair       |   |                                                               | 7,000        |   |   |   | -- |   |   |   | -- |   |   | $ | 1.39 |   | 01/01/19 |   |   |   |   |
| Robert Kennedy          |   |                                                               | 7,000        |   |   |   | -- |   |   |   | -- |   |   | $ | 1.39 |   | 01/01/19 |   |   |   |   |
| Charles Goehringer, Jr. |   |                                                               | 7,000        |   |   |   | -- |   |   |   | -- |   |   | $ | 1.39 |   | 01/01/19 |   |   |   |   |

----

----

|  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%                  |
|  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 stock options. |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

| (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. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (i)   | whether the terms of the related party transaction are fair to the Company and on the same basis as would apply if the transaction did not involve a related party; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | whether there are business reasons for the Company to enter into the related party transaction; |
|------------------|-------------------------------------------------------------------------------------------------|

| (iii)   | whether the related party transaction would impair the independence of an outside director; and |
|-------------------|-------------------------------------------------------------------------------------------------|

| (iv)   | whether the related party transaction would present an improper conflict of interests for any director or executive officer of the Company, taking into account the size of the transaction, the overall financial position of the director, executive officer or related party, the direct or indirect nature of the director's, executive officer's or related party's interest in the transaction and the ongoing nature of any proposed relationship, and any other factors the Audit Committee deems relevant. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|               |   | 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 and 2008. |
|--------|---------------------------------------------------------------|

|   | 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 Financial Statements. |
|--------|---------------------------------------------|

|   | 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))                                   |
| 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 (incorporated by reference to Exhibit 10(k) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 (file No. 001-33926))                                                                                                                      |
| 10(l)  | - Memorandum of Understanding relating to formation of AMAK, dated June 10, 2006 (incorporated by reference to Exhibit 10(l) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 (file No. 001-33926))                                                                                                                     |
| 10(m)  | - Articles of Association of Al Masane Al Kobra Mining Company, dated July 10, 2006 (incorporated by reference to Exhibit 10(m) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 (file No. 001-33926))                                                                                                                  |
| 10(n)  | - Bylaws of Al Masane Al Kobra Mining Company (incorporated by reference to Exhibit 10(n) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 (file No. 001-33926))                                                                                                                                                        |
| 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 (incorporated by reference to Exhibit 21 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 (file No. 001-33926))                                                                                                                                                                                          |
| 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)          |
| /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-2        |
|                                                                                                      |       |
| Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting      | F-3        |
|                                                                                                      |       |
| Consolidated Balance Sheets at December 31, 2009 and 2008                                                 | F-4        |
|                                                                                                      |       |
| Consolidated Statement 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-34       |

----

----

----

|                                                                                                                                                |   | 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 |
|--------|----------------------------------------|

----

----

----

----

|                                                                                   |   | 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 |   |
|                                                         |   |   |    |   |   |   |   |   |

| 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 domestic bank to finance the expansion of the petrochemical facility.  An amendment was entered into on November 26, 2008 which increased the term loan to $14.0 million due to the increased cost of the expansion.  This note is secured by property, pipeline and equipment. The agreement expires October 31, 2018.  At December 31, 2009, there was a short-term amount of $1,400,000 and a long-term amount of $10,950,000 outstanding.  The interest rate on the loan varies according to several options.  At December 31, 2009 the rate was 3.0%.  Interest is paid monthly. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 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 |   |

|                                 |   | 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) |

----

----

|                          |   | December 31, |   |
|-------------------------------|--------|--------------|--------|
|                          |   | 2009         |   |   | 2008 |   |   | 2007 |   |
|                          |   |         |   |   |   |   |   |   |   |
| Realized gain (loss)          |   | $            | (5,856 | ) |   | $ | 1,721 |   |   | $ | 3,367 |   |
| Write off 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 |   |

----

| 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 |   |

----