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Colonial Provides Exploration Activity Update on Flatbed Coal Property

Colonial Coal International Corp. is pleased to provide the following update on the Company’s recent exploration activities undertaken on its Flatbed Coal Property located in north-eastern British Columbia.

The primary objectives of the exploration work were to identify potentially underground mineable coal resources within the Gates Formation (which hosts established surface and underground mineable coking coal reserves and resources on a number of projects to the south, west and northwest of the Flatbed property) and to establish initial coal quality parameters.  Activities focused on the north-western portion of the property, which hosts one of the main target areas identified by the Company’s independent consultant (previously announced in January 2013).

Exploration was carried out between late July and early October 2017.  Work focussed upon the drilling of five, widely-spaced, HQ-size diamond drill holes on four separate drill sites for a total of approximately 2,830 m of drilling.  Associated activities included: down-hole geophysical logging; geological core description; coal (plus seam roof and floor) core sampling; geotechnical logging, sampling, and on-site testing; plus limited geological mapping.  Core samples have now been submitted to Birtley Coal and Minerals Testing (Calgary, Alberta) for coal quality analysis and to Golder Associates Ltd. (Burnaby, B.C.) for geotechnical testing.

Colonial has retained Norwest Corp. (of Salt Lake City, Utah) to undertake a report compliant with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Properties (“NI 43-101”), which will incorporate all the data acquired during the 2017 Flatbed exploration program plus additional data from certain historical oil/gas exploration wells.  The Company expects the technical report to be completed during the winter of 2017.

David Austin, President and CEO of Colonial, commented on the Company’s recent exploration activities as follows: “I am very pleased with our recent exploration activities at Flatbed and we expect our results and related NI 43-101 report to be very positive going forward”.

This news release has been reviewed by John Perry, a director of the Company and a Qualified Person as defined in NI 43-101.

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