Western Canadian Coal Corp.
TSX : WTN
AIM : WTN
TSX : WTN.DB

Western Canadian Coal Corp.

March 24, 2006 19:25 ET

Western Canadian Coal Suspends Operations at Dillon Mine for Spring Break-Up

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 24, 2006) - Western Canadian Coal Corp. (TSX:WTN)(TSX:WTN.DB)(AIM:WTN) (the "Company") announces that effective March 31, 2006, it will be suspending mining operations at the Dillon Mine due to the anticipated road weight restrictions on public roads used in the Dillon coal haul caused by Spring break-up. The suspension is expected to be between four and six weeks. The Dillon Mine, located on the Company's Burnt River Property in Northeast British Columbia, produces an ultra low-volatile pulverized coal injection ("PCI") coal.

The suspension at Dillon will not result in disruptions in supply of PCI coal to the Company's customers as it has accumulated coal inventories at Ridley Terminals in excess of 175,000 tonnes in anticipation of the road restrictions. Also, the Company estimates that the Dillon Mine suspension will result in a cash operating savings in excess of $5 million during the period. To the extent possible, the Company will re-deploy the Dillon workforce to further the development of its Wolverine Mine, hard coking coal project, which remains on schedule to be completed in July 2006.

Forward-Looking Information

This release may contain forward-looking statements that may involve risks and uncertainties. Such statements relate to the Company's expectations, intentions, plans and beliefs. As a result, actual future events or results could differ materially from those suggested by the forward-looking statements. Readers are referred to the documents filed by the Company on SEDAR. Such risk factors include, but are not limited to changes in commodity prices; strengths of various economies; the effects of competition and pricing pressures; the oversupply of, or lack of demand for, the Company's products; currency and interest rate fluctuations; various events which could disrupt the Company's construction schedule or operations; the Company's ability to obtain additional funding on favourable terms, if at all; and the Company's ability to anticipate and manage the foregoing factors and risks. Additionally, statements related to the quantity or magnitude of coal deposits are deemed to be forward-looking statements. The reliability of such information is affected by, among other things, uncertainties involving geology of coal deposits; uncertainties of estimates of their size or composition; uncertainties of projections related to costs of production; the possibilities in delays in mining activities; changes in plans with respect to exploration, development projects or capital expenditures; and various other risks including those related to health, safety and environmental matters.

WESTERN CANADIAN COAL CORP.

Gary K. Livingstone, President and Chief Executive Officer

Contact Information

  • Western Canadian Coal Corp.
    Gary K. Livingstone
    President & CEO
    (604) 608-2692
    or
    Western Canadian Coal Corp.
    Fausto Taddei
    CFO & Corporate Secretary
    (604) 608-2692
    (604) 629-0075 (FAX)
    info@westerncoal.com
    www.westerncoal.com