Fording Canadian Coal Trust

Fording Canadian Coal Trust

March 02, 2005 23:59 ET

Fording Announces Annual and Special Meeting

Trust Reorganization and Unit Split Proposed

CALGARY--(CCNMatthews - March 2) - Fording Canadian Coal Trust (TSX:
FDG.UN, NYSE: FDG) today announced that its Annual and Special Meeting
of Unitholders will be held on May 4, 2005 at 10:00 a.m. (MST) in the
Alberta Room of the Fairmont Palliser Hotel in Calgary, Alberta. The
close of business on March 28, 2005 has been fixed as the Record Date
for the determination of those unitholders entitled to receive notice
of and to vote at the meeting.

At the Annual and Special Meeting, unitholders will be asked to approve
a three-for-one split of the Trust's units. It is anticipated that the
unit split will result in a corresponding reduction in the market price
per unit making them more affordable for the average investor.

Unitholders will also be asked to provide conditional approval of a
two-step reorganization of the Trust and its subsidiaries. The first
step would result in the creation of a flow-through structure which
would effectively see distributions from Elk Valley Coal Partnership
taxed at the unitholder level. The second step, if undertaken, would be
a transaction whereby the Trust would acquire a direct interest in the
Elk Valley Coal Partnership.

In addition to unitholder approval, completion of each step of the
reorganization is subject to receipt of certain regulatory and third-
party approvals. A more detailed description of the reorganization and
the required approvals will be contained in the Notice of Meeting and
Management Information Circular that will be mailed to unitholders in
early April in advance of the Annual and Special Meeting.

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, currently 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.

Forward-looking Information

Certain information included in this document is of a forward-looking
nature. Forward-looking information is subject to known and unknown
risks, as well as uncertainties and other factors. Accordingly, actual
results may differ materially from those expressed or implied in
forward-looking information. Some of the risks, uncertainties and other
factors affecting Fording Canadian Coal Trust are discussed in our
public filings with the securities regulatory authorities in Canada and
the United States. Copies of Fording Canadian Coal Trust's Canadian
filings, including our most recent management information circular,
annual information form, annual report, quarterly reports, material
change reports and news releases, are available online at, and copies of our U.S. filings, including our most
recent annual report on Form 40-F as supplemented by filings on Form 6-
K, are available at Information in this document is
presented as of March 2, 2005 and is subject to change after this date.
However, Fording Canadian Coal Trust disclaims any intention or
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.

Contact Information

  • Fording Canadian Coal Trust
    Susan J. Soprovich
    Director, Investor Relations
    (403) 260-9834
    Fording Canadian Coal Trust
    Catherine Hart
    Coordinator, Investor Relations
    (403) 260-9817