SOURCE: Lotta Coal, Inc.

January 22, 2008 09:00 ET

Lotta Coal Awards Pipeline Master Contract to Black Arch Resources

CALGARY, AB--(Marketwire - January 22, 2008) - Lotta Coal (PINKSHEETS: LCOL) (FRANKFURT: LC5) today announced that it has awarded the master contract for its approximately 29 kilometer pipeline to connect its 8 gas wells in the Boyer Field to the existing infrastructure, to Black Arch Resources.

According to the company, Black Arch Resources will begin construction of the pipeline upon receiving the final survey and Alberta Energy and Utility Board approval. The pipeline consists of approximately 20 kilometers of 4" main line, and approximately 9 kilometers of 3" feeder lines, The main line will be connected to existing infrastructure and will enable the company to connect its 8 existing wells, and at the same time provide for expansion and future connection of up to a further 72 of its 164 planned additional wells on its existing Boyer land base.

"Black Arch Resources is a well-experienced company, which undertook all construction activities connected with our 2006 drilling program. In addition, along with its JV partner it has undertaken work in connection with a 100 kilometer pipeline in 2006/2007. We are confident they will complete the necessary construction in the required timeframe for the Company to start generating gas revenues by the end of Q1 this year," said Dr. Nicolas Matossian, President and CEO of Lotta Coal.

About Lotta Coal, Inc.

Lotta Coal, Inc. is a unique oil and gas company with three separate wholly owned operating subsidiaries, each with rights to explore and develop oil and gas resources in partnership with different First Nations commercial entities in Northern Alberta, Canada. The Company is publicly traded on the over-the-counter market under the Ticker symbol LCOL, and in Frankfurt LC5.

Shares Outstanding:   228,000,000
Shares Authorized:    400,000,000
Approx. Public Float:  22,000,000

Important Information About Forward-Looking Statements

All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.

A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.

Contact Information