Colonial Coal Moves Huguenot Measured + Indicated Resources to 189.4 Mt Plus 194.7 Mt of Inferred

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 4, 2012) - Colonial Coal International Corp. (TSX VENTURE:CAD) (the "Company" or "Colonial") announces an independent, measured, indicated and inferred resource estimate for its 100% owned Huguenot coking coal project located in northeast British Columbia as set out in the Company's technical report "Huguenot Coal Project" dated August 31, 2012 (the "Technical Report") completed by Norwest Corporation and filed on SEDAR.

These resource estimates have been determined using a 0.60 meter true thickness cut-off for open pit resources and 1.5m for underground resources. Full details of the resource estimates, including key assumptions, parameters and methods used to estimate the resources are contained in the Technical Report.

The resource estimations have been conducted by Norwest Corp. in conjunction with the preparation of the Technical Report for the property's main coking coal targets contained within the Gates Formation coal measures.

Estimates of underground resources reflect the extension of the geological model to 900m below surface.

David Austin, President and CEO of Colonial, commented on the results. "The inclusion of the underground resource in the Measured and Indicated ("M&I") categories is a huge step forward for the company and its shareholders. In aggregate, Colonial now has an M&I resource in excess of 189 Mt plus 194Mt inferred resource of high value coking coal."

This press release has been reviewed by Warren Evenson of Norwest Corporation, a Professional Geologist and a Qualified Person, as defined in NI 43-101.

About Colonial Coal International Corp.

Colonial is a publicly traded pure-play coking coal company in British Columbia. The northeast Coal Block of British Columbia, within which our Company's projects are located, hosts a number of proven deposits and has been the subject of M&A activities by Xstrata, Walter Energy, Anglo and others.
Additional information can be found on the Company's website www.ccoal.ca or by viewing the Company's filings at www.sedar.com.

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