Grande Cache Coal Corporation
TSX : GCE

Grande Cache Coal Corporation

July 18, 2007 08:00 ET

Grande Cache Coal Corporation Provides Operational Update

CALGARY, ALBERTA--(Marketwire - July 18, 2007) - Grande Cache Coal Corporation (TSX:GCE) ("Grande Cache Coal") is pleased to provide the following operational update:

- Grande Cache Coal sold 0.4 million tonnes of metallurgical coal in the first quarter of fiscal 2008, in line with the guidance provided by the company. A steady improvement in rail service resulted in substantially increased volumes of coal being moved to the port by the company's rail service provider during the first fiscal quarter.

- Grande Cache Coal is continuing to experience strong demand for its coal products and anticipates selling 0.3 to 0.4 million tonnes of metallurgical coal during its second fiscal quarter. The company continues to estimate that its coal sales volumes for fiscal 2008 will be in the range of 1.4 to 1.6 million tonnes, contingent upon adequate rail service and the timely commissioning of equipment for full-scale surface mine operations at the company's No. 12 South B2 mine.

- Initial components of the mining shovel and trucks purchased by Grande Cache Coal to resume full-scale surface mine operations at the No. 12 South B2 mine have arrived on site. The company has placed deposits on a majority of the additional pieces of mining equipment required to increase production from the surface mine and anticipates that this equipment will be delivered during its second fiscal quarter.

- Grande Cache Coal anticipates submitting supplementary information to the regulatory bodies during its second fiscal quarter in support of an application to commence mining at its No. 8 surface mine. The company recently filed an updated NI 43-101 Technical Report wherein the proven run-of-mine reserves at the No. 8 surface mine increased to 12.8 million tonnes (from 8.6 million tonnes) as a result of a drilling program completed during fiscal 2007 in support of the final submissions for a mine license.

Grande Cache Coal is an Alberta-based metallurgical coal mining company whose experienced team of coal professionals is operating a mining operation that produces metallurgical coal for the steel industry from its coal leases covering approximately 22,000 hectares in the Smoky River Coalfield located in west-central Alberta. Grande Cache Coal's common shares are listed on the Toronto Stock Exchange under the trading symbol "GCE".

This news release contains certain forward-looking statements including expectations of future coal sales, the delivery of mining equipment and the submission of regulatory applications, which are based on Grande Cache Coal's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects", "anticipates", "believes", "projects", "plans" and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Grande Cache Coal's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, Grande Cache Coal's ability to access sufficient capital for its operations, changes in general economic, market and business conditions; uncertainties associated with estimating the quantity and quality of coal reserves and resources; commodity prices, currency exchange rates, capital expenditures and debt service requirements; dependence on a single rail system; changes to legislation; liabilities inherent in coal mine development and production; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; geological, mining and processing technical problems; ability to obtain required mine licenses, mine permits and regulatory approvals required to proceed with mining and coal processing operations; ability to comply with current and future environmental and other laws; actions by governmental or regulatory authorities including increasing taxes and changes in other regulations; and the occurrence of unexpected events involved in coal mine development and production. Many of these risks and uncertainties are described in Grande Cache Coal's 2007 Annual Information Form, Grande Cache Coal's Management's Discussion and Analysis and other documents Grande Cache Coal files with the Canadian securities authorities. Copies of these documents are available without charge from Grande Cache Coal or may be accessed on Grande Cache Coal's website (www.gccoal.com) or on the website maintained by the Canadian securities regulatory authorities (www.sedar.com).

Contact Information

  • Grande Cache Coal Corporation
    Anita L. Roncin
    Vice President, Finance and Chief Financial Officer
    (403) 543-7070
    (403) 543-7092 (FAX)
    Website: www.gccoal.com