SOURCE: New Colombia Resources, Inc.

December 18, 2013 06:30 ET

New Colombia Resources Inc. Announces Plan and Projections for Extracting Raw Construction Materials From Their Metallurgical Coal Property in Colombia

Company to Begin Talks With the Largest Metallurgical Coal Supplier in the U.S.

BARRANQUILLA, COLOMBIA--(Marketwired - Dec 18, 2013) - New Colombia Resources, Inc. (OTCQB: NEWC) ("New Colombia or the Company") provides guidance on their previously announced plans to extract raw building materials from their mining concession in Guaduas, Colombia. In addition to coal, New Colombia's mining title covers other resources. Their property has vast amounts of gravel, marble, granite and other metamorphic resources so the company has been preparing to begin extraction of these materials which are in high demand due to the construction and infrastructure boom Colombia is experiencing.

New Colombia Resources has a team of environmental and civil engineers on the ground in Guaduas working closely with the local environmental authority preparing the necessary water, forest, and discharge permit applications. Upon submission and acceptance of these applications the Company can begin production. New Colombia expects to have all of their permits submitted and accepted in the next few weeks to begin mining operations next month.

New Colombia projects one work front consisting of an excavator/loader, dump truck, impact mill, and crusher, can produce 500 m3/day generating over US$ 12,000 in revenue. The cost to produce the 500 m3 is projected to be under US$ 7000. The company is in talks with representatives of a retired MLB All Star who owns a crusher in Colombia. The company will enter into a purchase, lease, or profit sharing agreement with this individual. The company plans to purchase a used dump truck and impact mill and lease the excavator/loader while they are able to purchase their own.

As previously announced New Colombia is working with an agent of a U.S. CAT dealer to submit credit applications to purchase U.S. made equipment. The Company will begin operations with equipment already in Colombia as they process these applications. New Colombia is expecting a term sheet this week from a major investor to finance the purchase of equipment, quarry build out, and operating capital.

In a recent study conducted by New Colombia Resources, the company determined that the demand for stone aggregates in Bogota is currently unmet since they are importing material from neighboring municipalities, like Guaduas. According to the National Statistics Administration Department (DANE), 84 Million cubic meters of construction material was projected to be produced in Colombia in 2012 of which 20% was sold in Bogota. Supply from mines in Bogota declined dramatically due to closures of 200 mines due to environmental issues.

The main consumption of building material in Colombia is for urban residential/commercial buildings (60%) and roads (15%). Rural construction, manufacturing, repairs, and maintenance make up the other 25%. New Colombia has been in preliminary discussions with the top 3 consumers of building material; however their focus is a local gravel company interested in 600 m3/day.

Hard stones can reach a price of US$ 45/m3 in Bogota, while in producing areas the price is about $ 17/m3 at the mine's gate. Transportation is a high percentage of the price of material in Bogota. New Colombia is in discussion with an accredited investor to purchase trailers and dump trucks to haul material 60 miles to Bogota.

"We're making every effort to start production of construction material in January. This will allow us to finance the drilling to complete the N.I. 43-101 of the metallurgical coal deposits. I have a call this week with the largest metallurgical coal supplier in the U.S. to discuss a possible investment or joint venture to start the met coal operations. We also have a thermal coal project under review by one the largest power companies in India, "stated John Campo, President of New Colombia Resources.

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About New Colombia Resources, Inc.

New Colombia Resources, Inc. is focused on the acquisition and development of high-quality metallurgical coal properties and other available resources in the Republic of Colombia. They expect to have three revenue producing businesses; metallurgical coal mining, African palm distribution, and traditional and organic coffees. They own 100% of La Tabaquera metallurgical coal mine in Colombia with an estimated 15- 17 MM tonnes of reserves. They have another pending acquisition for 390 ha and a solicitation contract for 184 ha metallurgical coal concession. In October 2013 they are planting 2000 African palm trees for the production of bio-diesel in Colombia and they are acquiring an organic coffee company. Once the necessary financing is obtained, the Company plans to have additional revenue producing business units in Colombia: coal mining, coking oven facilities, docks, river, and rail transportation to export terminals in Colombia. The Company is also exploring allegiances with U.S. and Colombian universities to study capturing Coal Bed Methane (CBM) in Colombia. For more information on the Company visit www.newcolombiaresources.com.

Transportation, Logistics and Other Information

New Colombia Resources intends to sell their coal at the mine's gate unless they enter into off-take agreements. At the right time, the Company plans to build or acquire river or rail loading facilities on the Magdalena River close to their mines. The coal will be trucked to these distribution centers, and then barged via the Magdalena River or by rail to terminals in Barranquilla, Santa Marta, or Cartagena for export. Initially they will use existing logistics providers while their transportation projects are being developed. After the rail projects and the "Road to the Sun" project are completed, New Colombia Resources will have one of a few metallurgical coal mines in the World with river, rail, and road access to coal export terminals on both the Atlantic and Pacific Oceans.

Forward Looking Statements

Forward Looking Statements; This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement containing works such as "anticipate," "seek," intend," "believe," "plan," "estimate," "expect," "project," "plan," or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Some or all of the events or results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include financing, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations. New Colombia Resources, Inc. does not undertake any duty nor does it intend to update the results of these forward-looking statements.

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