TORONTO, ONTARIO--(Marketwire - Jan. 28, 2011) - Coalcorp Mining Inc. (TSX VENTURE:CCJ.H) ("Coalcorp") announces that it has entered into an agreement with Formation Metals Inc. (TSX:FCO) ("Formation") for the prepayment by Formation of the 12% unsecured convertible debenture in the principal amount of $8 million issued by Formation to Coalcorp on May 6, 2010 (the "Debenture"). Currently, the principle amount outstanding on the debenture is $7 million, and Coalcorp holds 795,638 of Formation common shares. Pursuant to this agreement, Coalcorp will surrender the Debenture to Formation upon receipt of approximately $9.33 million in cash and 400,000 common shares in the capital of Formation ("Formation Shares"). The prepayment and surrender of the Debenture is subject to certain conditions, including the completion of Formation's previously announced public offering of Formation Shares by Formation and regulatory approval. The closing of the transaction is expected to occur on or about March 15, 2011.

Forward Looking Statements Disclaimer

Forward Looking Statements made in this news release may be forward-looking and therefore subject to various risks and uncertainties. Such statements can typically be identified by terminology such as "may", "will", "could", "should", "expect", "plan", "anticipate", "believe", "intend", "possible", "continue", "objective" or other similar expressions concerning matters that are not historical facts. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Coalcorp does not undertake to update any forward-looking statements; such statements speak only as of the date made.

Contact Information: Coalcorp Mining Inc.
Steven Cresswell
Interim Chief Executive Officer