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.

Measured, Indicated and Inferred Resource Estimates at Huguenot Coal Project Effective August 31, 2012
Surface Resources
Measured (MT) 43.6 36.6 - 80.2
Indicated (MT) 7.3 4.7 - 12.0
Measured plus Indicated (MT) 50.9 41.3 - 92.2
Inferred (MT) - 5.3 32.9 38.2
Underground Resources
Measured (MT) 19.2 17.6 - 36.8
Indicated (MT) 28.5 31.9 - 60.4
Measured plus Indicated (MT) 47.7 49.5 - 97.2
Inferred (MT) 67.6 5.3 83.6 156.5
Surface + Underground
Measured (MT) 62.8 54.2 - 117.0
Indicated (MT) 35.8 36.6 - 72.4
Measured plus Indicated (MT) 98.6 90.8 - 189.4
Inferred (MT) 67.6 10.6 116.5 194.7

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 or by viewing the Company's filings at

Forward-Looking Information

Information set forth in this news release may involve forward-looking statements. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address a company's expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: risks associated with marketing and sale of securities; the need for additional financing; reliance on key personnel; the potential for conflicts of interest among certain officers or directors with certain other projects; and the volatility of common share price and volume. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and except as required by law, the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE SECURITIES LEGISLATION.

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.

Contact Information:

Colonial Coal International Corp.
Perry Braun

Colonial Coal International Corp.
Don Sutherland
604.568.4962 or Cell: 604.727.4392