| ||December 06, 2011|
CanAm Reports Coal Sales of 94,000 tons for Q3, up 8-fold from the prior year
Calgary, AB -- December 6, 2011 -- CanAm Coal Corp. (TSXV: COE) (OTCQX: COECF) ("CanAm" or the "Company") is pleased to report coal sales for the third quarter ending October 31, 2011. Coal sales of 94,261 tons were achieved in the third quarter of fiscal 2012 as compared to 11,408 tons in Q3 of fiscal 2011 or an increase of 82,853 tons. Coal sales were up 12,808 tons from the previous quarter of fiscal 2012. For the nine month period ended October 31, 2011, coal sales were 206,369 tons as compared to 33,672 tons in fiscal 2011 or a six-fold increase.
Sales for the quarter were characterized by:
"We continued to build our production levels in the third quarter and as a result coal sales increased another 16% or 12,800 tons as compared to the previous quarter and year-to-date we have surpassed coal sales of 200,000 tons. We are pleased with the progress at our mines and we are continuing to implement and evaluate opportunities to organically grow or expand this production", said Tim Bergen, CEO of CanAm.
- Contribution of 59,027 tons of coal sales from the Company's 50% ownership in BCC's three operating mines, Bear Creek, Old Union and Gooden Creek, is on par with the second quarter of fiscal 2012. Coal sales from BCC's brokerage business increased to 5,957 tons, up from 3,206 tons in Q2. All of BCC's mines produce high quality thermal coal.
- Coal sales at the Powhatan mine resumed to normal levels in Q3 and were 29,277 tons which is up 10,098 tons or 53% from the second quarter. As compared to the same period last year, contribution of the Powhatan mine is up 17,869 tons or 256%.
- The mix of metallurgical/thermal coal for the third quarter at the Powhatan mine was 45/55% which is below the average coal mix of 60/40% mainly as a result of geological inconsistencies encountered in the coal seams within the increment that is currently being mined. The ratio of metallurgical/thermal coal for the nine month period ended October 31, 2011 at the Powhatan mine was 55/45%.
The Company will release its full third quarter financial results at the end of December 2011.
About CanAm Coal Corp.
CanAm is a coal producer and development company focused on growth through the acquisition, exploration and development of coal resources and resource-related technologies. CanAm's main activities and assets include its four operating coal mines in Alabama, the exclusive rights to a proprietary Coal to Liquids technology which converts coal into liquid fuels (such as oil, jet fuel) at an economical cost with zero airborne emissions and the Buick Coal Project which holds significant coal resources, 188 million indicated and 103 million inferred resources, in Colorado, USA (see the technical report entitled "Limon Lignite Project, Elbert County, Colorado, USA," dated October 26, 2007 and filed on SEDAR on November 2, 2007). Other coal and related opportunities continue to be evaluated on an ongoing basis.
For Further Information:
CanAm Corporate Office:
Tim Bergen, CEO
Toll Free: 1.877.262.5888
Brisco Capital Partners:
Scott Koyich, Partner
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR website at www.sedar.com. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
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