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Canada Coal Applies for Additional Exploration Licences within Fosheim Peninsula

Canada Coal Inc. (the "Company" or "Canada Coal"), is pleased to announce that it has applied for an additional 11 coal exploration licences within the Fosheim Peninsula region on Ellesmere Island. Once granted, these licences will add an additional 280,000 acres to Canada Coal's project area in key areas surrounding planned exploration drill targets, taking the Company's total coal licence holdings to 86 licences covering approximately 2,722,627 acres.

The Company has a reasonable expectation that the additional coal exploration licences will be granted in sufficient time to be included in the planned Phase 2 exploration drilling program.

Multiple high quality thermal coal deposits were discovered on the Company's arctic coal license areas located in Nunavut through its 2012 exploration program. Well over 100 coal seams on the Company's Fosheim Peninsula project area were assessed, resulting in the identification of extensive zones of low-sulphur, low-ash, subbituminous, thermal coal. The Fosheim Peninsula is the company's primary exploration target and one of six coal license areas currently owned by the Company.

Historic Coal Data Overview: http://www.canadacoal.com/index.php?page=historic_data

Braam Jonker, President and CEO of Canada Coal comments, "These strategic acquisitions fortify the company's coal license holdings in key areas identified throughout the 2012 exploration program. Additional acreage has been applied for in order to extend property borders in areas where high quality thermal coal was discovered with low sulphur and low ash content. We have now commenced permitting for the upcoming Phase 2 exploration drilling program and anticipate between 9,000-10,000 meters of drilling to be conducted."

In compliance with National Instrument 43-101, Standards of Disclosure for Mineral Projects, Susan O'Donnell, B.Sc., P.Geol., of DMT Geosciences Ltd., is the Independent Qualified Person responsible for the accuracy of this news release.

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