Last updated on April 25, 2014 at 1:22 EDT

Pacific Coal Resources Ltd. announces third quarter results

November 29, 2011

TORONTO, Nov. 29, 2011 /PRNewswire/ – Pacific Coal Resources Ltd. (TSXV: PAK)
has filed today its interim condensed consolidated financial statements
for the three and nine months ended September 30, 2011, together with
its Management’s Discussion and Analysis (“MD&A”) for the corresponding
period. These documents will be posted on the Company’s website at www.pacificcoal.ca and at www.sedar.com.

Luis Carvajales, Chief Executive Officer, commented: “I am pleased with
the progress the Company is making to implement mine plans at both La
Caypa and Cerro Largo, which aim to progressively reduce costs, and
ensure firm, guaranteed sales volumes going forward at contract prices
at a premium to market. With a full trucking fleet now in place, we are
in a good position to ramp up production at both Cerro Largo and CI
Jam. Year to date, we produced 1.2 million tonnes of coal, which
demonstrates a track record of execution over the last three quarters,
and we remain on track to produce at our budgeted production target of
1.6 million to 1.8 million tonnes for the year. ”

Financial and Operating Summary

A summary of the financial and operating results for the three and nine
months ended September 30, 2011 is as follows:

                      2011          Third           Nine       Period from
                                  Quarter         months     incorporation
                                     2010          ended                on
                                               September       May 4, 2010
                                                     30,                to
                                                    2011     September 30,


    Tonnes of      400,909        303,879      1,070,209           494,677

    Average           7.61           8.38           7.38              9.18
    ratio -

    Tonnes of      460,189        343,779      1,217,389           578,442
    coal sold

    price per
    sold         $  101.01   $      97.98   $      97.65   $         87.51

    Operating         4.12          12.55          10.18              5.56
    margin per
    tonne sold


    Revenues     $           $     33,682   $    118,877   $        50,617

    Gross margin     (937)          3,860          6,370             2,450

    Net (loss)

    Shareholders   (1,126)          3,723       (46,380)             2,313

    Basic and
    per share         0.00           0.08         (0.16)              0.08

    Total assets   392,112         83,598        392,112            83,598
    at period

    Total           32,021         14,445         32,021            14,445
    debt at
    period end

(1)     Includes coal purchased from third parties for sale.
(2)     See “Additional Financial Measures” in MD&A.

Third Quarter Highlights

        --  Through the first nine months of 2011, production amounted to
            1.2(1) million tonnes of coal. Pacific Coal is on track to
            produce 1.6(1)million to 1.8(1) million tonnes of coal in 2011.
        --  Total revenues for the third quarter of 2011 increased to $46.5
            million on the strength of 460,189 tonnes of coal sold at an
            average realized price of $101.01 per tonne. Total revenues for
            the first nine months of 2011 amounted to $118.9 million.
        --  Operating costs in the third quarter of 2011 increased by
            approximately $9 per tonne, compared with the first half of
            2011, mainly associated with an increase in the royalties at La
            Caypa, which are prepaid and expected to decrease going
            forward. Higher transportation and port services costs also
            impacted operating expenses and, with a full committed trucking
            fleet in place, these costs are expected to decline as well in
            coming quarters.
        --  Pacific Coal has entered into a sales purchase agreement with
            LCC Group, an established energy services company based in
            Northern Ireland, for the supply of 700,000 tonnes per annum,
            commencing upon completion of deliveries under their existing
            contract and extending the relationship between the two
            companies to 2019. Management has estimated the value of this
            agreement at approximately $350 million based on conservative
            forward prices for coal.
        --  Exploration at both the La Caypa and Cerro Largo mines has been
            undertaken in coordination with SRK pursuant to updating the
            National Instrument 43-101 ("NI 43-101") technical reports in
            connection with open pit and underground resources at both
        --  Progress is being made in the expansion of installed capacity
            for coke production at CI Jam and activities associated with
            development of the Barranquilla port.
        --  Exploration at La Tigra is progressing and geophysical studies
            have been undertaken (due to be finalized by mid-December); a
            NI 43-101 technical report is expected by the second quarter of
        --  The Company commenced a Normal Course Issuer Bid in July 2011
            and to-date has repurchased approximately 2% of its issued and
            outstanding common shares for cancellation.

(1)     Includes 0.1 million tonnes produced in the first quarter of
2011 at Cerro Largo prior to the March 2011 acquisition.

Management will hold a conference call on Wednesday, November 30, 2011
at 10:30 a.m. (Eastern Time) to discuss the third quarter 2011 results.

Call-in details are as follows:

    Toronto & International:      (647) 427-7450

    North America:                (888) 231-8191

    Conference ID:                32099208

A playback of this conference call will be available by dialling (416)
849-0833 or 1 (855) 859-2056 with the above conference ID number until
December 14, 2011.

About Pacific Coal Resources Ltd.

Pacific Coal Resources Ltd. is a Canadian-based mining company focused
on coal, coking coal, asphalt and asphaltite exploration, development
and production from prospective, producing, development-stage and
exploration-stage properties in Colombia. The Company has acquired or
entered into agreements to acquire various interests in several
operating coal mines and projects, representing a substantive coal and
asphaltite exploration and production area throughout Colombia. Pacific
Coal is committed to implementing its exploration and development
strategy with a comprehensive environment, safety and community
program, meeting international standards of best practice.

Forward Looking Information:

This news release contains “forward-looking information”, which may
include, but is not limited to, statements with respect to the future
financial or operating performance of the Company and its projects.
Often, but not always, forward-looking statements can be identified by
the use of words such as “plans”, “expects”, “is expected”, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or
believes” or variations (including negative variations) of such words
and phrases, or state that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Pacific Coal to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Forward-looking statements
contained herein are made as of the date of this press release and
Pacific Coal disclaim, other than as required by law, any obligation to
update any forward-looking statements whether as a result of new
information, results, future events, circumstances, or if management’s
estimates or opinions should change, or otherwise. There can be no
assurance that forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, the reader is cautioned
not to place undue reliance on forward-looking statements.

Neither 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 news release.

SOURCE Pacific Coal Resources Ltd.

Source: PR Newswire