PBS Coals Limited

October 11, 2008 00:30 ET

PBS Coals Limited Announces that Severstal Resources has Extended Offer for Shares Until October 20, 2008

TORONTO, ONTARIO--(Marketwire - Oct. 11, 2008) - PBS Coals Limited (TSX:PBS) announces that the expiration date for the September 5, 2008 offer (the "Offer") by a subsidiary of Severstal Resources ("Severstal") to purchase all of the common shares of PBS Coals Limited has been extended by Severstal to 11:59 p.m. (Toronto time) on October 20, 2008.

The terms of the Offer remain unchanged at C$8.30 cash per share.

Severstal announced that the Offer has been extended to allow for the receipt of confirmation from the Committee on Foreign Investment in the United States (CFIUS) under the Exon-Florio Amendment to the Defense Production Act of 1950, as amended, that no second-stage investigation will be initiated in respect of the joint application submitted by Severstal and PBS Coals Corporation.

The 30-day review period under the United States Defense Production Act of 1950, as amended by the Foreign Investment and National Security Act of 2007 expired on October 10, 2008 and PBS Coals Limited has been advised that there are no outstanding issues in respect of the Offer and expects to receive confirmation of the decision of CFIUS prior to the new expiry date of the Offer.

All conditions of the Offer have been met as at October 10, 2008, subject to confirmation that no second stage investigation has been initiated by CFIUS.

Severstal has agreed to take up and pay for all shares deposited to the Offer within three business days of the new expiry date provided the conditions of the Offer have been satisfied.

As of the close of business on October 10, 2008, over 90% of the outstanding shares of PBS Coals Limited, have been tendered and not withdrawn pursuant to the offer.

Severstal has advised that it will file its Notice of Extension with Canadian regulatory authorities and mail copies to all shareholders of PBS Coals Limited shortly.

About PBS Coals Limited

PBS Coals Limited owns 87% of the equity of the PBS Coals Group of Companies, a privately held group of companies engaged in the mining, processing and sale of primarily metallurgical coal from their properties in West-Central Pennsylvania (the "PBS Group"). The PBS Group consists of PBS Coals, Inc., a Delaware corporation, and Rox Coal, Inc., a Pennsylvania corporation, and their subsidiaries and holding companies. The PBS Group currently produces approximately 3 million clean tons of bituminous coal a year from both its underground and surface operations. The PBS Group has six surface and six underground mines in operation, and controls 153.3 million tons of measured and indicated coal resources with an additional 98.3 million tons of contingent resources.

The technical information in this press release has been reviewed by Tim Phillips, the Executive Vice-President of PBS Coals Limited and a director of PBS Coals Limited. Mr. Phillips is a qualified person for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Phillips has verified the data in this press release by referring to the Independent Technical Report - Coal Reserves and Mining Operations - PBS Coals, Inc. prepared for PBS Coals Corporation by John T. Boyd Company effective May 30, 2008 available at www.sedar.com. Details of quantity and grade or quality of each category of mineral resources is included in the report.

Forward-Looking Statements

Certain statements contained in this release constitute "forward-looking statements" and express views as to future events, circumstances and trends relating to the business of PBS Coals Limited. Words such as "plans," "intends," "outlook," "expects," "anticipates," "estimates," "believes," "should" and similar expressions may identify forward-looking statements. Forward-looking statements are based on management's current expectations and assumptions and entail various risks and uncertainties. There is no assurance that any forward-looking statement will materialize. Actual results may differ materially from these expectations and forward-looking statements, if known and unknown risks or uncertainties affect PBS Coals Limited's business, or if management's expectations or assumptions prove to be inaccurate. Factors that could cause actual results to differ materially from the forward-looking statements contained herein include, but are not limited to: the ability of PBS Coals Limited and the Offeror to satisfy or complete the conditions of the Offer as required by the support and purchase agreement; the availability of regulatory approvals required for completion of the Offer; PBS Coals Limited's and the Offeror's abilities to complete a second-step transaction, the ability of PBS Coals Limited to complete its current expansion plans as anticipated; the results of PBS Coals Limited's exploratory drilling program. PBS Coals Limited disclaims any obligation or intention to update or revise any forward-looking statement, whether the result of new information, future events or otherwise, except as otherwise required by applicable law. Additional information concerning risks and uncertainties affecting PBS Coals Limited is contained in the company's filings with the Canadian securities regulatory authorities available on SEDAR at www.sedar.com.

Contact Information

  • PBS Coals Limited
    Robert Scott
    President and Chief Executive Officer
    (814) 443-4668
    PBS Coals Limited
    Colin K. Benner
    Chairman of the Board
    (778) 990-1190