CanAm Coal Corp.

CanAm Coal Corp.

August 15, 2012 09:01 ET

CanAm Reports Second Quarter Coal Sales of 77,000 Tons

CALGARY, ALBERTA--(Marketwire - Aug. 15, 2012) - CanAm Coal Corp. (TSX VENTURE:COE), (OTCQX:COECF) ("CanAm" or the "Company") is pleased to report coal sales for the second quarter ending June 30, 2012. Q2 2012 coal sales were 76,577 tons, a 15% increase over Q1 but a 6% decrease from the previous year. For the six month period ended June 30, 2012, coal sales were 143,756 tons, a 28% increase over the previous year.

Three Month Period Six Month Period
Ended Ended
June 30 July 31 June 30 July 31
2012 2011(i ) 2012 2011(i )
Metallurgical coal 16,291 10,830 31,571 30,028
Thermal coal 60,286 70,623 112,158 82,080
Total 76,577 81,453 143,730 112,108

(i) The comparative period is to July 31, 2011 as the Company formerly had a January year-end.

The increase in year to date sales can be attributed to a full period contribution from the Company's 50% investment in Birmingham Coal & Coke ("BCC"), which closed in May 2011. Second quarter 2012 sales showed improvement over the first quarter despite April and May being negatively impacted by two of the factors that hampered Q1 production; namely, the transitional impact of management and operational changes at the Powhatan mine and an operational incident that damaged an excavator at the Gooden Creek mine (refer to the Q1 2012 MD&A for additional discussion). Additionally, the Company carried out a considerable amount of grading and revegetation reclamation work in Q2, which also had an impact on production.

The management and operational changes made at Powhatan, which produces all of CanAm's metallurgical coal began to show positive results in June where mine production and sales exceeded 12,000 tons, the best month in its history under CanAm ownership. As well, the Company has replaced the damaged excavator with another unit and impacted production is returning to normal levels. Overall, June production improved considerably and further, significant improvement for the rest of the year is anticipated.

Jos De Smedt, President and COO of CanAm commented "The planned and unplanned events which held back production for the first six months are now behind us. The closing of our acquisition of an additional 30% interest in BCC, which is effective July 1, 2012 (see news release dated July 27, 2012), the contribution from the planned start-up of our new mines (see news release dated August 13, 2012) and a return to full production at our existing mines positions CanAm for a very strong second half to the year and into 2013".

The Company will release full second quarter financial results at the end of August 2012.

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

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 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.

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