SOURCE: Lotta Coal Inc.

April 11, 2007 09:00 ET

Lotta Coal Nominates Alex Barta as Vice-President of Communications and Investor Relations

CALGARY, AB -- (MARKET WIRE) -- April 11, 2007 -- Lotta Coal Inc. (PINKSHEETS: LCOL) today announced it had nominated Alex Barta as its Vice-President of Communication and Investor Relations.

"We are really glad to have Mr. Barta onboard with us. His experience in oil and gas operation, marketing and investor relations will enable us to develop and deploy key communication strategies and continuously inform our shareholders, partners and other stakeholders of our progress," said Dr. Nicolas Matossian, Chief Executive Officer of Lotta Coal Inc.

The nomination comes days after the announcement of the financing agreement signed on March 28, 2007. According the terms of the binding agreement, the investment group will invest an initial USD $8,000,000 and will be granted a series of warrants to be exercised over a 60 month period. The initial investment along with the exercise of the warrants represents a total of USD $189,040,000, which is expected to be invested into the company. The investment is subject to the completion of the due-diligence and is schedule to close on or before June 28, 2007.

The initial investment will enable the company to construct pipeline and feeder pipeline for the existing 8 proven gas wells, and immediately drill and tie in an additional 8 wells. The company is planning to drill up to an additional 156 wells on its existing lands. These wells will generate significant cash-flows and profits for shareholders.

Currently Lotta Coal Inc. has over 100,000 acres of land, which are all located in prime oil and gas producing areas of Alberta and the company plans to further develop its existing properties as well as continue to acquire probable and producing properties.

The company expects to release further information regarding the private investment group and the intended use of proceeds from the financing as the transaction advances towards the closing.

About Lotta Coal

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.

The Company has been able to assemble over 100,000 acres of land, all with a 100% interest. It successfully drilled seven wells and re-entered a further well in the Boyer field, and is preparing engineering for tie-in to infrastructure. Over $3,600,000 has been invested since September 2006 on drilling and acquisition activities, including a successful shallow gas drilling program that produced seven out of seven wells to be put into production.

Important Information About Forward-Looking Statements

Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above. In addition, such statements could be affected by risks and uncertainties related to the exploration for and development of mineralized material, product demand, market and customer acceptance, competition, pricing and development difficulties, as well as general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Information on the Company's website does not constitute a part of this release.

Contact Information

  • Contact:
    Alex Barta
    Vice-President, Communication and Investor Relations
    Tel (778) 882-8871