Cline Mining Corporation

Cline Mining Corporation

January 05, 2005 11:07 ET

Cline Mining-$1.8 Million Lodgepole Program


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CLINE MINING CORPORATION

TSX VENTURE SYMBOL: CMK

JANUARY 5, 2005 - 11:07 ET

Cline Mining-$1.8 Million Lodgepole Program

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 5, 2005) - Cline Mining
Corporation (TSX VENTURE: CMK) announces that it is now proceeding with
the planned exploration and development work program on its Lodgepole
metallurgical coalmine project located in the Crows Nest Coalfield of
Southeastern British Columbia, Canada.

The approved program, which will be carried out at a cost of $1.8
million, provides for 51 diamond drill holes, 600 meters of adits into
coal, and 6.8 kilometers of road construction on the property. The
program is designed to confirm and provide information for the
preparation of feasibility and environmental assessment studies before a
production decision.

The drilling program aims to increase resource assurance of the
geological model which has recently been completed for the Company by GR
Tech of Calgary, Alberta. The adit program will obtain bulk samples from
the two lower coal zones, which attain a total thickness of 21 meters on
the property. The bulk samples will be processed in a pilot plant to
affirm and assess the coal qualities in the seams and the best methods
of processing the Lodgepole PCI and Hard Coking Coal products. Samples
from the adits will be shipped to international steel mills for their
assessment and determination of qualities in relation to marketing and
pricing the two metallurgical coal products.

Lodgepole is located in the Crows Nest Coalfield some 42 kilometers by
road from the CP Rail mainline at Morrissey in British Columbia and 33
kilometers by road from the rail load out of the Coal Mountain Mine of
the Elk Valley Coal Partnership. Extensive exploration work on the
Lodgepole property completed between 1975 and 1997 has yielded an
extensive database, which includes results from 36 drill holes totaling
5,327 meters, 875 meters of surface trenching, four adits (bulk samples)
and detailed geographic mapping. This historical work by Shell Canada
and Fording Coal identified nine coal zones containing an aggregate
thickness of 32.7 meters of coal seams. Cline has commissioned and is
now completing a National Instrument 43-101 Report on the Lodgepole coal
resources in order to classify and standardize the present known
resource in accordance with the current requisite regulatory reporting
standards.

Cline is targeting one to two million tonnes of annual production from
the 80 million tonnes of in place raw coal resources amenable to open
pit mining methods reported by Shell Canada and Fording Coal in their
earlier exploration work on Lodgepole. The Lodgepole mining area is
approximately 1.8 kilometers by 1.4 kilometers in size with the coal
measures lying in a dip slope structure in which coal measures and the
overburden both lie at an average of some 25 degrees down slope; a
situation considered favourable for extended low strip ratio mining.

Cline Mining Corporation is a coal mine development company focused on
the exploration and development of metallurgical coal in Canada for the
international seaborne coal trade market. The Company website is at
www.clinemining.com . Shares of the company trade on the TSX-Venture
Exchange under the symbol CMK.

Cline Mining Corporation

"Ken Bates"

Ken Bates, President

Not for distribution to U.S. Newswire services or for dissemination in
the United States. The TSX Venture Exchange neither approves nor
disapproves of this press release.

Exploration results and coal resources referred to from the Lodgepole
property are historical in nature, and were compiled before National
Instrument 43-101. Cline has not independently analyzed the results of
the previous exploration therefore historical results should not be
relied upon. Cline Mining believes these historical results provide an
indication of the potential of the property and are relevant to ongoing
exploration.



530 Lasalle Boulevard
Sudbury, ON P3A 1W9

Suite 2950, PO Box 11578,
650 West Georgia Street
Vancouver, BC V6B 4N8

Telephone:
Vancouver: (604) 687-7789
Sudbury: (705) 560 8100
Toronto: (416) 243 7384
Cell: (416) 830 0709
Fax: (705) 560 8521/(416) 242 6384



-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Cline Mining Corporation
    Ken Bates
    416-243-7384
    or
    Cline Mining Corporation
    Allan Taylor
    705-560-8100
    info@clinemining.com