Cobalt Coal Corp.
TSX VENTURE : CBT

May 18, 2011 12:03 ET

Cobalt Coal Corp. Announces Continuous Miner Breakdown

CALGARY, ALBERTA--(Marketwire - May 18, 2011) - Cobalt Coal Corp. ("Cobalt" or the "Company") (TSX VENTURE:CBT), announces a significant machine malfunction at its Westchester Mine. During the evening of May 17th, the main shaft of the continuous miner severed causing the separation of the cutter heads from the machine.

While management is investigating alternatives, difficulty in sourcing replacement parts may necessitate a re-build of the continuous miner which could take 1-2 weeks during which time operations at the mine will be shutdown. Management will provide further updates as information becomes available.

About Cobalt:

Cobalt is a publicly traded coal exploration and production company headquartered in Calgary, Alberta, Canada with a regional office in Welch, West Virginia USA. Cobalt was created in August 2007 to capitalize on the growth opportunities that exist in the modem metallurgical coal mining industry.

The securities of Cobalt being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

READER ADVISORY

Statements in this news release may contain forward-looking information including the timing of closing of the Offering and the intended use of proceeds of the Offering. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. These risks include, but are not limited to, the risks associated with the coal mining industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION/SERVICE 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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