Radar Acquisitions Corp.
TSX VENTURE : RAC

Radar Acquisitions Corp.

September 24, 2009 06:00 ET

Radar Enters Into an Agreement to Create a US Coal Mining Company

CALGARY, ALBERTA--(Marketwire - Sept. 24, 2009) - Further to a press release dated March 30, 2009, Radar Acquisitions Corp. (TSX VENTURE:RAC) ("Radar") is pleased to announce that Radar has entered into an agreement (the "Agreement") to create a US coal mining company ("RAC Mining") in partnership with a group of private investors in Alabama. Under the agreement Radar will own 49% of RAC Mining with the remaining ownership being held by two Alabama based mining companies. The assets of the newly created company will include a historically producing Alabama coal property.

"This is an exciting development as Radar anticipates commencement of coal operations in early November 2009 and anticipates generation of cash flow from this investment in an operating coal mine upon closing of the transaction" said Timothy Bergen, CEO of Radar. Also, this collaboration with the private investors envisions a strategic partnership to identify, acquire and develop additional coal properties that compliments Radar's other two major projects under development: the Buick Coal Project which holds significant coal resources in Colorado, USA (estimated at 291 million tons of indicated and inferred lignite resources per the technical report entitled "Limon Lignite Project, Elbert County, Colorado, USA," dated October 26, 2007 and filed on SEDAR on November 2, 2007), and the RPS Fuels joint venture which develops engineered solid fuel products.

The transaction is expected to close by October 30, 2009 and is subject to regulatory approval including TSX Venture Exchange approval.

THE AGREEMENT

Pursuant to the Agreement, the transaction will result in Radar purchasing from RAC Mining's treasury, shares ("RAC Mining Shares") such that Radar will own 49% of the issued and outstanding RAC Mining Shares after such issuance in exchange for US$1,000,000 cash. Radar's partners will own 51% of RAC Mining in exchange for the contribution of mining rights associated with one active mining permit, two pending permits and two mining leases. In addition, pursuant to an option contained in the agreement (the "Option"), Radar will have a 36 month option to purchase a 51% ownership in a private Alabama coal mining company ("PrivateCo") directly from a shareholder of PrivateCo, for an aggregate exercise price of US$1,500,000.

RAC MINING

The company will hold one active mining permit, #3868, covering a total area of approximately 130 acres and two other permits, #3928 (comprising approximately 224 acres) and #3889 (comprising approximately 16 acres), which are pending and anticipated to be issued within the next 90 days. Both of these permits are adjacent to the active mining permit and all lands are in Jefferson County, Alabama. In addition, RAC Mining will hold two mining leases; one for 80 acres on adjacent lands and one for approximately 640 acres on lands in the Franklin, Marion and Winston Counties, Alabama. The permitting process has started on the 640 acres land holding and the mining permit is expected to be issued in the first quarter of 2010.

As to the Jefferson County lands, structurally, the mining site is located in the Warrior Coal Basin. The strata which underlines and outcrops in this region is of the Pottsville Formation of the Pennsylvanian age. Locally, the strata that outcrops in the immediate vicinity of the mine site includes siltstones, shales, sandstones, underclays, and coal seams associated with the Mary Lee Coal Group. The target seams at the facility are the Mary Lee (typically high value steam coal), and Blue Creek (typically metallurgical coal) Seams of the Mary Lee Coal Group.

OTHER INFORMATION

The Agreement is subject to certain conditions including approval of the transaction by the board, issuance of the pending mining permits and other conditions customary for transactions similar in nature to the transaction. The transaction would be an arm's length transaction.

Dennis Nikols P. Geo., a qualified person, has reviewed and verified the technical mining information contained in this news release.

About Radar Acquisitions Corp.

Radar is a natural resource development company focused on growth through the acquisition, exploration and development of coal resources and resource-related technologies. Radar has currently two major projects under development: the Buick Coal Project which holds significant coal resources in Colorado, USA (see the technical report entitled "Limon Lignite Project, Elbert County, Colorado, USA," dated October 26, 2007 and filed on SEDAR on November 2, 2007), and the RPS Fuels joint venture which develops engineered solid fuel products. Other coal and related opportunities continue to be evaluated on an ongoing basis. For more information about Radar, go to www.radar.ab.ca.

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at www.sedar.com. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that terms is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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