Cobalt Coal Ltd.
TSX VENTURE : CCF

Cobalt Coal Ltd.

April 04, 2012 12:09 ET

Cobalt Coal Ltd. Retracts Previously Announced Reserve Estimates

CALGARY, ALBERTA--(Marketwire - April 4, 2012) - Cobalt Coal Ltd. (formerly Cobalt Coal Corp.) (TSX VENTURE:CCF) ("Cobalt" or the "Company") has become aware, as a result of a Continuous Disclosure Review conducted from time to time by the Alberta Securities Commission, that certain of its previously announced reserve data is not compliant with National Instrument 43-101.

As a result, the Company hereby retracts the reserve information contained in the Company's January 19, 2011 news release together with the reserves information contained in the Company's MD&A filings dated April 29, August 26 and November 25, 2011 (the "Filings").

The retraction of the coal reserve information reported in the Filings is required as the reserve information has not been verified by a qualified person under National Instrument 43-101 and therefore is unsupported by a Technical Report compliant with National Instrument 43-101 and the reserve estimates should not be relied upon.

The only coal reserve information supported by a Technical Report under National Instrument 43-101 is the Westchester Mine report dated June 8, 2009 which was prepared by Norwest Corporation ("Norwest") and approved by a Qualified Person as required by National Instrument 43-101.

A summary of the information disclosed in the June 8, 2009 Norwest Technical Report is as follows:

WESTCHESTER COAL MINE SEWELL SEAM

CLEAN COAL RESERVE SUMMARY (KT0NS)

Area Underground Clean Coal Reserves
(KTONS)
Proven Probable
North Block 79.618 0
South Block1 520.261 0
Total 599.879

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, and is exclusively focused on growth opportunities in metallurgical grade coal.

READER ADVISORY

Statements in this news release may contain forward-looking. 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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