CanAm Coal Corp.
TSX VENTURE : COE

CanAm Coal Corp.

April 19, 2012 09:05 ET

CanAm Consolidates Mine Operations Under Common Structure to Drive Operational Efficiencies

CALGARY, ALBERTA--(Marketwire - April 19, 2012) - CanAm Coal Corp. (TSX VENTURE:COE) (OTCQX:COECF) ("CanAm" or the "Company") is pleased to report on the consolidation of mine operations under one common structure and team that will be led by Birmingham Coal & Coke ("BCC").

Since November 2009, CanAm has embarked on a strategy to become an emerging coal producer and the Company has successfully completed two acquisitions: gaining control of RAC Mining LLC ("RAC"), a predominantly metallurgical coal producer, and acquiring a 50% ownership stake in Birmingham Coal & Coke Inc., a predominantly thermal coal producer, with a 5-year option to purchase the remaining 50%. Up until recently, these respective operating subsidiaries and their mines were managed and run independently. However, a desire to continuously improve our operations, to drive operational efficiencies and to leverage BCC's proven process of running safe, reliable and profitable operations, has motivated the Company to consolidate mine operations under one common structure.

Under this structure BCC will, in addition to the operation of the Bear Creek, Old Union and Gooden Creek mine, also take on operational responsibility for the Powhatan and Davis mine. This consolidation will allow the Company to simplify the management structure, implement consistent policies, processes and procedures across all mines and establish a common performance measurement and accountability framework. In this context, Mr. Wayne Bass, VP of Operations for BCC, and Mr. Eddie Colburn, General Mine Superintendent for BCC, will take on the additional responsibility for the Powhatan and Davis mine and be accountable for their respective mining operations. Additional mines that are slated to open up later on this year, the Old Union 2 and the Posey Mill 2 mines, will also be managed within the context of this common structure and team.

The Company believes that a multitude of benefits will be derived from this consolidation including sharing of resources; staff, equipment and parts, optimization of equipment utilization, leveraging the purchasing power of the combined organization with suppliers and vendors, obtaining more favorable financing terms with various lenders. Last but not least, improved operating practices and policies and, consistent implementation thereof, will lead to operational efficiencies. The transition to this new structure was started in early March and is nearing its completion.

The Company is also announcing the appointment of Mr. Eric Hallmark as the controller for the Alabama mining operations. In this capacity, Eric will have responsibility over all aspects of accounting, financial and regulatory reporting, financing and banking, taxation and general administrative matters. Eric joined the Company in December of 2011 after a 23 year career in public accounting. He is a graduate from the University of Alabama in Birmingham with a Bachelor's degree in Accountancy. In the twenty years prior to starting his own practice, he was a senior manager with one of Alabama's top ten accounting firms and prior to this was a manager with an international accounting firm. His experience includes working with partnerships, LLCs, S corporations and closely-held corporations in the mining, architectural, construction and manufacturing industries and serviced Birmingham Coal & Coke Co., Inc. for over ten years prior to joining the team.

"Consolidation of our operations under a common structure was the next logical step for us as we look to drive synergies and operational efficiencies across the mines", said Jos De Smedt, CFO of CanAm. "In addition, simplification of our structure and leveraging BCC's 30 year experience of running safe and profitable mining operations makes perfect sense as we continue our consolidation strategy in Alabama and look to exercise our BCC option in the near future. Complementing our team with an experienced individual like Eric will further assist us in the execution of this strategy while maintaining financial discipline and strengthening controls across our business".

About CanAm Coal Corp.

CanAm is a coal producer and development company focused on growth through the acquisition, exploration and development of coal resources and resource-related technologies. CanAm's main activities and assets include its four operating coal mines in Alabama and the Buick Coal Project which holds significant coal resources, 188 million indicated and 103 million inferred 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). Other coal and related opportunities continue to be evaluated on an ongoing basis.

Forward-Looking Information and Statements

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

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 term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information