Cobalt Coal Corp.
TSX VENTURE : CBT

May 17, 2011 08:00 ET

Cobalt Coal Corp. Announces Proposed Share Consolidation

CALGARY, ALBERTA--(Marketwire - May 17, 2011) - Cobalt Coal Corp. ("Cobalt" or the "Company") (TSX VENTURE:CBT), announces that the Board of Directors has come to the conclusion that in order to re-capitalize the Company, a share consolidation will be necessary. As a result, Shareholders will be asked to consider a Consolidation Resolution at the Annual and Special Meeting of Shareholders to be held on June 29, 2010. The Consolidation Resolution will authorize the Company to amend its articles to effect a consolidation ("Consolidation") of the common shares on the basis ten (10) common shares into one (1) new common share in the capital of the Company.

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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