SOURCE: Lotta Coal Inc.

April 17, 2007 10:22 ET

Lotta Coal Receives Green Light on Investment Due Diligence and Moves Towards Closing the Initial USD $8 million

CALGARY, AB -- (MARKET WIRE) -- April 17, 2007 -- Lotta Coal, Inc (PINKSHEETS: LCOL) today announced it has received a certification of a satisfactory due diligence ahead of schedule and is now taking the necessary steps to close the initial investment of USD $8 million on or before June 28, 2007.

"We are extremely satisfied having received the green light on the due diligence and we are very grateful for the cooperation received from our partners, the First Nations, with the thorough process undertaken by the investment group of the Bahamas," said Nicolas Matossian, Interim President of Lotta Coal. "The attorneys are now working on the closing agreements which are expected to be completed on time," further added Mr. Matossian.

The initial investment of USD $8 million will enable the company to construct the pipeline and feeder pipeline for the existing 8 proven gas wells, and immediately drill and tie in an additional 8 wells. In addition the Company will acquire up to 12,000 hectares of additional lands, drill two wells and undertake a 3D seismic program to select further drilling locations on its Peace Arch property. The Company is planning to drill up to 156 additional gas wells on its existing Boyer lands, which are expected to 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