Grande Cache Coal Corporation
TSX : GCE

Grande Cache Coal Corporation

April 21, 2008 09:40 ET

Grande Cache Coal Corporation Provides Operational Update

CALGARY, ALBERTA--(Marketwire - April 21, 2008) - Grande Cache Coal Corporation (TSX:GCE) ("Grande Cache Coal" or "the Corporation") today provided an update on operations.



- Grande Cache Coal sold 1.65 million tonnes of metallurgical coal in
fiscal 2008, including 0.42 million tonnes in the fourth quarter. This
represents a 65% increase in annual sales volume, compared to the 1.00
million tonnes sold in fiscal 2007. The Corporation had anticipated
sales volumes in the range of 1.4 to 1.6 million tonnes for the year.

- The Corporation anticipates sales volumes of 1.8 to 2.0 million tonnes
in fiscal 2009. Sales volumes in the first quarter of fiscal 2009 are
projected to be 0.4 million tonnes.

- The Corporation anticipates capital expenditures will total
approximately $50 million in fiscal 2009.
- Expenditures related to surface mining are expected to total $30
million in the year, including $11 million on equipment to
increase mine productivity and $19 million of mine development
projects. The development expenditures are to include an extension
of the current surface mining area as well as development on
future surface mining areas.
- Capital expenditures related to underground mining and the coal
processing plant are projected to total approximately $5 million
each, including both sustaining capital expenditures and projects
designed to increase efficiency.
- Safety, environmental, engineering and other projects are expected
to total $8 million.
- Ongoing drilling and exploration programs are anticipated to total
approximately $2 million.

- Grande Cache Coal has filed its application for approval of the No. 8
surface mine, including application for an Energy Resources
Conservation Board Mine permit amendment and mine license and for an
Alberta Environment amendment of the Corporation's present EPEA
approval.

- Grande Cache Coal has posted a new corporate presentation on its
website at www.gccoal.com.


"We are pleased with the sales volumes achieved by Grande Cache Coal this fiscal year" said Robert Stan, President and Chief Executive Officer. "Exceeding our sales guidance of 1.4 to 1.6 million tonnes required a concerted effort by all of our personnel, and we expect to increase our sales volumes for the third consecutive year by selling 1.8 to 2.0 million tonnes in fiscal 2009."

"We are finalizing negotiations for fiscal 2009 coal prices and expect to achieve considerable price increases due to the strong demand for our product. With continued focus on safety, cost control and productivity improvements, we anticipate profitable results for fiscal 2009."

Grande Cache Coal is an Alberta based metallurgical coal mining company whose experienced team of coal professionals are managing a mine that produces metallurgical coal for the steel industry and holds coal leases covering over 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".

Forward-looking Statement Advisory

This news release contains certain forward-looking statements, 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, 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).

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

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