VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 26, 2013) - EastCoal Inc. ("EastCoal" or the "Company") (TSX VENTURE:ECX)(AIM:ECX) announces today that the Company is in the process of preparing an updated technical report in compliance with the requirements of National Instrument 43-101 ("NI 43-101") for its Verticalnaya property (the "Updated Report").
The Company filed the "Amended Pre-Feasibility Study Report on the Verticalnaya Mine, Ukraine" by IMC Group Consulting Ltd., dated June 2012 (the "Previous Report") on July 9, 2012. As part of the Company's admission to trading on the AIM market of the London Stock Exchange plc and in accordance with the AIM rules, the Company filed a Competent Persons Report (the "CPR"). The CPR discloses a 26% increase (from the Previous Report) in JORC-compliant total resources (inclusive of reserves), and an amended economic analysis, with a downgrade of some reserves from proved to probable class. The financial evaluation included inter alia a lower assumed sales price for coal, resulting in a reduction in net present value.
Since the Company disclosed amended estimates and analysis in the CPR and in investor materials, for NI 43-101 purposes the Previous Report is no longer current and the aggregate changes are material changes in relation to the Company which have triggered a requirement to file an updated technical report in compliance with the requirements of NI 43-101.
The Company has retained independent consultants who are in the process of preparing and filing the Updated Report which should be available in due course. Because of the material changes in relation to the Company detailed in the CPR which have required an update to the Previous Report, investors and shareholders should not place undue reliance on the Previous Report.
Upon publication of the Updated Report, the Company will also re-file its annual information form for the year ended December 31, 2012 on SEDAR to reflect the changes to the Company's technical disclosure set out in the Updated Report.
Mr. David J.F. Smith, C. Eng., MIoM3, BSc (Eng), is the Qualified Person responsible for the accuracy of this news release in compliance with NI 43-101.
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.
This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking information. These and all subsequent written and oral forward-looking information are based on estimates and opinions on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, EastCoal assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.