TORONTO, ONTARIO--(Marketwire - June 21, 2011) -
NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA OR THROUGH U.S. NEWSWIRE SERVICES
Lipari Energy, Inc. ("Lipari") (TSX:LIP) announced an update on the cessation order (the "Order") issued by Department of Natural Resources ("DNR") for the Commonwealth of Kentucky on May 12, 2011 that was initially disclosed by Lipari in a press release dated May 16, 2011. The hearing officer has extended the time for abatement of the underlying violation from June 17, 2011 to July 15, 2011 but has currently denied Lipari's Motion for Temporary Relief.
As previously disclosed, Lipari is not prohibited from requesting additional mining permits, with two pending permits having been issued on June 9, 2011 that pertained to Lipari's Mitco mine.
Lipari estimates that, if required to remediate, the cost of completing the remediation will be less than $500,000. Lipari has retained a third party engineering firm to evaluate and make recommendations on the stabilization of the slide material. Lipari's current operations have not been effected by this Order.
Lipari's General Counsel, David Stetson, stated, "Our request for temporary relief required a high standard of proof and although we were not successful on our Motion for Temporary Relief we believe at the formal hearing, which will be held in the coming months, that we will present compelling and substantial evidence to support a ruling in our favor."
About Lipari:
Lipari was organized under the laws of the State of Delaware in 2008 and is a thermal coal producer with current operations and additional development properties in the Central Appalachian region of the United States. Lipari has been in production since 2008 and has diversified surface and highwall mining operations. Lipari sells predominantly to utilities through a mix of forward contracts and short-term sales. Lipari's growth strategy includes continued growth its organic reserves over the next five years through its enhanced drilling program, as well as from its focused and disciplined approach to strategic acquisitions. Lipari's corporate office is located in London, Kentucky.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon.
This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release contains "forward-looking information" that includes information relating to future events and future financial and operating performance, including management's assessment of Lipari's future outlook. Forward-looking information should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking information is based on information available at the time it is made and/or management's good faith belief as of that time with respect to future events, and such information is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking information. Important factors that could cause these differences include but are not limited to: changes in contracted sales, the business of the Company may suffer as a result of uncertainty surrounding the coal market; the Company may be adversely affected by other economic, business, and/or competitive factors; the worldwide demand for coal; the price of coal; the price of alternative fuel sources; the supply of coal and other competitive factors; the costs to mine and transport coal; the ability to obtain new mining permits; the costs of reclamation of previously mined properties; the risks of expanding coal production; the ability to bring new mines on line on schedule; industry competition; the Company's ability to continue to execute its growth strategies; and general economic conditions. These and other risks are more fully described in the Company's filings with the Canadian Securities Administrators, including its Annual Information Form for the year ended December 31, 2010, available on SEDAR at www.sedar.com. You should not put undue reliance on any forward-looking information. We assume no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking information, no inference should be drawn that we will make additional updates with respect to those or other forward-looking information.
Neither 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.
Contact Information:
David Stetson
General Counsel
606-877-1800