Cobalt Coal Ltd.

Cobalt Coal Ltd.

December 19, 2011 15:35 ET

Cobalt Coal Ltd. Announces the Closing of the Second Tranche of Private Placement

CALGARY, ALBERTA--(Marketwire - Dec. 19, 2011) - Cobalt Coal Ltd. ("Cobalt" or the "Corporation") (TSX VENTURE:CCF) is pleased to announce that it has closed the previously announced second tranche of its brokered private placement (the "Offering"). Cobalt issued 2,526,000 common shares in the capital of the Corporation (the "Shares") at a price of $0.12 per Share for gross proceeds of $303,120. All securities issued pursuant to the second tranche of the Offering are subject to a four month hold period expiring on April 20, 2012.

Mackie Research Capital Corporation ("Mackie Research Capital") acted as agent of the Corporation pursuant to the Offering. Mackie Research Capital was paid a cash commission and was granted 202,080 compensation options in connection with the closing of the second tranche of the Offering ("Compensation Options"), with each Compensation Option entitling the holder to acquire one Share at a price of $0.12 per Share until June 19, 2013.

The proceeds of the Offering will be used to acquire mining equipment, to perform infrastructure upgrades for Cobalt's Westchester/Westchester Expansion Mine, and for working capital purposes.

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 to capitalize on the growth opportunities that exist in the 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.


Statements in this news release may contain forward-looking information including the use of proceeds from the Offering and the timing of closing 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 Corporation. 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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