Elk Valley Coal Partnership

Elk Valley Coal Partnership

January 17, 2005 23:59 ET

Elk Valley Coal and Cpr Agree to Engage in Mediation Process in Coal Transportation Contract Dispute

CALGARY--(CCNMatthews - Jan. 17) - Fording Canadian Coal Trust (TSX: FDG.UN,
NYSE: FDG) and Canadian Pacific Railway (TSX/NYSE: CP) today announced that Elk
Valley Coal and CPR have agreed to engage in a mediation process, beginning Jan.
20, to attempt to settle their dispute over freight rates applicable to the
transportation of coal from Elk Valley Coal's mines in southeastern British
Columbia to Vancouver area ports for overseas export.

The mediation process is not binding and success will depend upon the parties
reaching a consensus. The parties have agreed to keep confidential all matters
pertaining to the mediation and its progress. The parties have also agreed to
hold in abeyance, pending the outcome of mediation, the outstanding legal
proceedings commenced in 2004 before the Court of Queen's Bench with respect to
the matters in dispute.

For further information, please refer to Fording Canadian Coal Trust's news
release of December 14, 2004, and that of CPR dated December 13, 2004.

About Fording

Fording Canadian Coal Trust is an open-ended mutual fund trust. Through
investments in metallurgical coal and industrial minerals mining and processing
operations, the Trust makes quarterly cash distributions to unitholders. The
Trust, through its wholly-owned subsidiary, Fording Inc., holds a 60% interest
in the Elk Valley Coal Partnership and is the world's largest producer of the
industrial mineral wollastonite. Elk Valley Coal Partnership, comprised of
Canada's senior metallurgical coal mining properties, is the world's second
largest exporter of metallurgical coal, capable of supplying approximately 25
million tonnes of high-quality coal products annually to the international steel
industry. The Trust's shares are traded on the Toronto Stock Exchange under the
ticker symbol FDG.UN and on the New York Stock Exchange under the symbol FDG.

About Canadian Pacific Railway

Canadian Pacific Railway is a transcontinental carrier operating in Canada and
the U.S. Its 14,000-mile rail network serves the principal centres of Canada,
from Montreal to Vancouver, and the U.S. Northeast and Midwest regions. CPR
feeds directly into America's heartland from the East and West coasts. Alliances
with other carriers extend its market reach throughout the U.S. and into Mexico.
Canadian Pacific Logistics Solutions provides logistics and supply chain
expertise worldwide. For more information, visit CPR's website at www.cpr.ca.

Contact Information

  • Fording Canadian Coal Trust
    Susan J. Soprovich
    Director, Investor Relations
    (403) 260-9834
    Email: investors@fording.ca
    or
    Catherine Hart
    Coordinator, Investor Relations
    (403) 260-9817
    Email: investors@fording.ca
    or
    Canadian Pacific Railway
    Paul Bell
    Vice-President, Investor Relations
    (403) 319-3591
    Email: investor@cpr.ca
    or
    Len Cocolicchio (media relations)
    (403) 319-7591 or Cell: (403) 650-2748
    Email: len_cocolicchio@cpr.ca