SOURCE: Lotta Coal Inc.

January 09, 2008 09:00 ET

Lotta Coal Provides Corporate Update

CALGARY, AB--(Marketwire - January 9, 2008) - Lotta Coal (PINKSHEETS: LCOL) (FRANKFURT: LC5) today provided a corporate update to shareholders and stakeholders on the progress made in the last few months and to provide information concerning the corporate structure, ownership as well as other disclosure information.

"We want to address our shareholders in the most clear and precise way possible in order to prevent any misinformation arising from certain incorrect information that has been previously disseminated on the internet by an unknown third party. Management believes this improper spreading of incorrect information has adversely affected our share price and the information contained herein shall serve to rectify the situation," said Dr. Nicolas Mattossian, President and CEO of Lotta Coal Inc.

Name Change

Lotta Coal Inc. has been renamed, at the state level, as Lotta Energy Corporation, and the change has been submitted to the NASDAQ in order to obtain the new ticker symbol. The Company expects the name change and ticker to be effective at the NASDAQ very soon.

Transaction History

Lotta Coal Inc. formerly Ensec International Inc.(2) entered into a merger and reorganization agreement with Ensec International Inc. (1) both Florida corporations. Pursuant to the merger and reorganization agreement, Lotta Coal Inc. acquired 100% of Peace West Energy (Alberta) and 100% of Lesser Slave Lake Exploration (Alberta) as well as 100% of Great Bear Exploration (Alberta). In anticipation of a listing on the London AiM exchange, the subsidiaries, Peace West, Lesser Slave Lake and Great Bear were transferred into a wholly owned subsidiary named Lotta Energy Corporation (British Virgin Island).

Recently, Lotta Coal Inc. has merged one of its subsidiaries, specifically Great Bear Exploration into Dairy Fresh Farms Inc. as part of a merger and re-organization, which resulted in Lotta Coal being the majority shareholder of Dairy Fresh Farms Inc., a fully reporting company, trading on the NASD OTC Bulletin Board under the ticker symbol DYFR. Dairy Fresh Farms Inc. is to be renamed Great Bear Oil and Gas Corporation.

Corporate/ Ownership Structure

Lotta Coal Inc. (Florida) owns 100% of Lotta Energy Corporation (British Virgin Island). Lotta Energy Corporation (BVI) owns 100% of Peace West Energy (Alberta) and 100% of Lesser Slave Lake Exploration (Alberta) and approximately 51% of Dairy Fresh Farms Inc. (Nevada). Lotta Coal owns 30,000,000 shares of Dairy Fresh Farms Inc.

Dairy Fresh Farms Inc. (Nevada) is to be renamed Great Bear Oil and Gas Corporation. Dairy Fresh Farms Inc. (Nevada) is a fully reporting company, trading on the NASD OTC Bulletin Board under the symbol DYFR.

Peace West Energy Corporation

Peace West Energy Corporation is located in the Boyer area in North Western Alberta. The Company has invested a significant amount of both cash and resources to the development its Boyer fields and has drilled 7 new wells and re-entered 1 well. The Company has planned and approved a pipeline and feeder system and in partnership with the Beaver First Nations, the Company plans to begin construction at the end of January and/or as soon as it receives final approval from the Alberta Energy Utility Board. The Company has also recently completed (including perfing and fraccing) its wells, and has engaged Reliance Engineering Ltd., to complete a 51-101 engineering report. Management expects to receive said 51-101 by or before February 20, 2008.

Lesser Slave Lake Explorations Inc.

Lesser Slave Lake Explorations Inc. is located in the Peace Arch area in North Western Alberta. The Company has applied for drilling permits and plans to drill 3 gas wells in the first quarter of 2008.


Lotta Coal Inc. has been named as a defendant in a statement of claims in the superior court of Alberta, as part of a lawsuit initiated by a small group of shareholders of a company named Synergy Oil & Gas Inc. (Alberta). Lotta Coal Inc. has retained legal counsel to have the Company removed from the proceedings as it does not have any relevancy and or legal merit. The Company is not party to any other claims and or lawsuits.

Transfer Agent

Lotta Coal Inc. has changed its transfer agent to Stalt Inc., a transfer agent located in Menlo Park, California. Stalt Inc. is fully registered with the Securities and Exchange Commission of the United States of America.

Financing Activities

Lotta Coal Inc. has raised, to date, over $7,000,000 and has a standby commitment for an additional $5,000,000 from Cunningham-Adams Small Cap Fund I (SRL), a Barbados Small Cap Fund. The Company anticipates, but cannot guarantee, raising additional capital through a planned Initial Public Offering on the London AiM exchange as well as through Farm-out agreements and or Joint-Ventures.

About Lotta Coal Inc.

Lotta Coal, Inc. is a unique oil and gas company with three separate wholly owned operating subsidiaries, each with rights to explore and develop oil and gas resources in partnership with different First Nations commercial entities in Northern Alberta, Canada. The Company is publicly traded on the over-the-counter market under the Ticker symbol LCOL, and in Frankfurt LC5.

Shares Outstanding:     228,000,000
Shares Authorized:      400,000,000
Approx. Public Float:    22,000,000

Important Information About Forward-Looking Statements

All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.

A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.

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