Arabian American Development Company Receives Permit for Facilities Expansion

Nick Carter, President of South Hampton, commented, "We have been eagerly awaiting receipt of this permit so that we could determine the timing of the start up for our expanded facilities. The permitting process has taken approximately two months longer than what we initially anticipated, moving the projected start-up date to late May or early June rather than early second quarter. When complete, management expects at least 20% of the expansion to be immediately utilized with the remainder filled over the next three to four years. This additional capacity is expected to increase our North American market share and open opportunities inSouth America,Europe and Asia."

Regarding the Company's mining lease in the Al-Masane area of western Saudi Arabia, Hatem El-Khalidi, the President and CEO of the Company stated, "The formal application for the transfer of the mining lease to the Al-Masane Al-Kobra Mining Company (ALAK) was filed with the Ministry of Petroleum and Mineral Resources on February 23, 2008." ALAK is the Saudi joint stock company of which the Company owns 50%. The Company believes that the Ministry will approve the transfer promptly since ALAK has agreed to fulfill all the provisions of the mining lease and has demonstrated its financial and technical competence to do so. The construction contract for the project was signed on November 26, 2007 with Nesma & Partners Contracting Company Limited, a major Saudi construction company, as the prime contractor, and theChina National Geological & Mining Corporation (CNGM) as the primary sub-contractor. Together, they will build the copper/zinc mine's concentrator and surface works at the Al-Masane lease site. The total contract for the project was awarded to Nesma and CNGM for $110.8 million US dollars. The Al-Masane mine underground works, which had been flooded, was very recently de-watered, and is being prepared for development. CNGM has also completed the detailed survey of the area where the facilities are to be built. El-Khalidi added, "The Company is confident that the project will proceed in a timely manner and will be good for the growth and diversification of the Saudi economy and good for the shareholders of Arabian American Development Company."

About Arabian American Development Company (ARSD):

Arabian American owns and operates a petrochemical facility located in southeast Texas just north of Beaumont, specializing in high purity petrochemical solvents and other solvent type manufacturing. The Company is also the original developer and is now a 50% owner of a joint venture in a mining project in the Al-Masane area ofSaudi Arabia which is under construction and is scheduled to be in production in late 2010. The mine will produce economic quantities of zinc, copper, gold, and silver.

Safe Harbor

Statements in this release that are not historical facts are forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon management's belief as well as assumptions made by and information currently available to management. Because such statements are based upon expectations as to future economic performance and are not statements of fact, actual results may differ from those projected. These risks, as well as others, are discussed in greater detail in Arabian American's filings with the Securities and Exchange Commission, including Arabian American's annual Report on Form 10-K for the year ended December 31, 2006 and the Company's subsequent Quarterly Report Forms 10-Q.

     Company Contact:  Nick Carter, Executive Vice President and Chief
                       Operating Officer
                       (409) 385-8300
                       ncarter@southhamptonrefining.com

     Investor Contact: Cameron Donahue or Brett Maas
                       Hayden Communications
                       (651) 653-1854
                       Cameron@haydenir.com

SOURCE Arabian American Development Co.

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