Cline Mining announces mine plan review resulting from increased coal resource

TORONTO, July 3, 2012 /CNW/ - Cline Mining Corporation ("Cline Mining" or the "Company") (TSX:CMK) announces today that the Company is currently revising and optimizing the operations of the New Elk Coal Company LLC ("New Elk") under the leadership of New Elk's recently-appointed Chief Operating Officer, David Stone. As mentioned in the Company's press release dated May 29, 2012, Mr. Stone is the executive fully responsible for the management of all personnel, management and operations at the New Elk coal mine, situated in Trinidad, southern Colorado.

David Stone, commented: "Taking into account the inclusion of the additional 230.4 million tons of Measured and Indicated ("M&I") coal resources identified through the updating of the Company's resource by Agapito Associates, Inc., as described in the Company's press release dated May 24, 2012 filed on SEDAR, a detailed optimization process has been commenced to ensure that the optimum Net Present Value is achieved for the asset. It is envisaged that this process should take approximately 10 to 12 weeks and will include short-term volume optimization for a defined 'Life of Mine' value maximization. A forecast will also be developed during this period for the remainder of the 2012 year and a budget for the 2013 year. These actions will enable the provision of appropriate volume and cost guidance as the operation tracks from the completion of the opening project through to Phase 1 of the production cycle. As a result, the Company will not provide production or cost guidance at this time, and previous guidance is currently being reviewed."

On May 24, 2012 Agapito Associates, Inc. reported a total M&I coal resource for the New Elk coal mine of 618.9 million tons and an additional 104.5 million tons of Inferred coal resource, including the extended Department of Wildlife ("DOW") lease, the recently acquired Secora Ranch, and the four new coal seams. This represents an increase of 230.4 million tons of M&I coal resource and 81.8 million tons of Inferred coal resource from the 2011 Technical Report titled "NI 43-101 Technical Report, New Elk Mine Project, Los Animas County Colorado, USA Prepared for New Elk Coal Company LLC, subsidiary of Cline Mining Corporation" dated May 27, 2011 by Agapito Associates, Inc.

Ken Bates, President, CEO & Director commented: "The Company is preparing a new mine plan under the guidance of David Stone to maximize the mine's production and in parallel develop a world class longwall mining complex. The New Elk coal mine holds tremendous potential to be a major, long-term hard coking coal producer. The Company believes that through this thorough planning and review process, the asset will demonstrate its optimum potential so that it is poised for growth as the metallurgical coal market strengthens."

Qualified Persons:

Dennis Z. Mraz, P.Eng. of New Elk Coal Company LLC and Leo J. Gilbride, P.E., of Agapito Associates, Inc., both qualified persons under NI 43-101, have reviewed and approved the technical information in this news release.

About Cline:

Cline has metallurgical coal property interests in British Columbia and in Colorado, U.S.A. with NI 43-101 independent Technical Reports. Cline Mining Corporation is focused on the exploration and development of metallurgical steel making coals in Canada and the U.S., and on its iron ore property in Madagascar and its Cline Lake gold property in northern Ontario, Canada.

Head office:

Brookfield Place, 181 Bay Street, 3rd Floor, Clarkson Gordon Heritage Building, Toronto, ON, M5J 2T3

Forward-Looking Information:

This news release contains forward-looking statements (including "forward-looking information" within the meaning of applicable Canadian securities laws). These risks and uncertainties include, among other things, the Company's need for additional funding to continue its exploration efforts, changes in general economic, market and business conditions, and competition for, among other things, capital and skilled personnel. These statements are not a guarantee of future performance and undue reliance should not be placed on them. The Company undertakes no obligation to update or revise any forward-looking statements except as required by applicable laws. Copies of the Company's public filings under applicable Canadian securities laws are available at www.sedar.com. The Company further cautions that information contained on, or accessible through, this website is current only as of the date of filing such information and may be superseded by subsequent events or filings.

SOURCE Cline Mining Corporation

For further information:

Ken Bates, President and CEO
Office: (416) 504-7600
Email: kbates@clinemining.com

Belinda Labatte
Greg DiTomaso
The Capital Lab
Office: (647) 438-2193
Email: investor@clinemining.com

Profil de l'entreprise

Cline Mining Corporation

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