Western Canadian Coal Corp.

Western Canadian Coal Corp.

July 24, 2009 08:03 ET

Western Canadian Coal Announces $52 Million "Bought Deal" Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 24, 2009) -


Western Canadian Coal Corp. (TSX:WTN)(AIM:WTN) ("Western Canadian") is pleased to announce that it has entered into an agreement with a syndicate of investment dealers led by Cormark Securities Inc. and including GMP Securities L.P., Canaccord Capital Corporation. and Salman Partners Inc. (the "Underwriters"), which have agreed to purchase, on a bought deal basis, 19.3 million common shares of Western Canadian at a purchase price of $2.70 per common share (the "Offering Price"), for aggregate gross proceeds in the amount of $52.1 million. In addition, the Company has granted the Underwriters an option to purchase up to an additional 2.8 million common shares at the Offering Price exercisable within 30 days after the closing of the offering for additional gross proceeds in the amount of up to approximately $7.6 million.

The offering is scheduled to close on or about August 19, 2009 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities. Application has been made for the shares, which will rank pari passu with all existing shares, to be admitted to trading on AIM. Dealings in the 19,300,000 new common shares are expected to commence on 19 August 2009.

The net proceeds of the offering will be used for expanding production through the development of their existing assets and general corporate purposes.

These securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This press release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The common shares will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.

About Western

Western is a producer of high quality metallurgical and thermal coal from mines located in northeast British Columbia (Canada) and West Virginia (USA). The mines have the capacity to produce nearly 7 million tonnes per year and have nearly 20 years of coal reserves. Western also owns a 50.6% interest in Energybuild (AIM:EGB) which produces high quality anthracite and thermal coals in South Wales UK). Other interests include a 45% interest in Xtract Energy (AIM:XTR), 20% interest in NEMI (TSX:NNE.A)and 100% of a small gold an antimony operation in Australia. The Company is headquartered in Vancouver, BC, Canada, and trades on the AIM and TSX stock exchanges under the symbol "WTN". For more information, please visit www.westerncanadiancoal.com.

Neither the Toronto Stock Exchange nor the London Stock Exchange have reviewed and neither accepts responsibility for the adequacy or accuracy of this release and the information contained herein.

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