Coalcorp does not make December Interest Payment on Senior Notes within 30
day cure period pending completion of proposed transaction

TORONTO, Jan. 31 /CNW/ - Coalcorp Mining Inc. ("Coalcorp" or the "Company") (TSX-CCJ) announces that it did not make a USD$6.9 million interest payment on its 12% senior secured notes (the "Senior Notes") due on December 31, 2010 (the "December Interest Payment"), within the required 30 day cure period which ended on January 31, 2010. As announced by the Company on December 31, 2010, the Company did not pay the December Interest Payment on its due date, and under the terms of the note indenture governing the Senior Notes (the "Note Indenture") the Company had 30 days to make this payment in order to avoid an event of default.

As subsequently announced on January 7, 2010, certain subsidiaries of Coalcorp entered into agreements to sell the La Francia I mine and related infrastructure assets, and all of the issued and outstanding shares of Adromi Capital Corp., the holder of the La Francia II concession, to a subsidiary of the Goldman Sachs Group, Inc. (the "Proposed Transaction").

In connection with the Proposed Transaction and pursuant to the terms of the Note Indenture, Coalcorp made an offer on January 28, 2010 to repurchase the outstanding Senior Notes at the required 102% premium (plus any accrued interest) in accordance with the terms of the Note Indenture (the "Restricted Transfer Offer"). Concurrently with the Restricted Transfer Offer, Coalcorp also made an offer to repurchase all remaining outstanding Senior Notes for 100% of the principal amount (plus any accrued interest) (the "Remaining Notes Offer"). Both the Restricted Transfer Offer and Remaining Notes Offer (collectively, the "Offers for Notes") are conditional upon the completion of the Proposed Transaction and will expire on the business day immediately prior to the closing date of the Proposed Transaction, which is expected to occur on or about February 19, 2010, unless extended. The Offers for Notes has been filed and is available on SEDAR at www.sedar.com.

Provided that the Proposed Transaction is completed, the Company will pay the December Interest Payment and the interest accrued thereon to the holders of Senior Notes as of the record date applicable to the December Interest Payment prior to the completion of the Offers for Notes.

    
    About Coalcorp
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Coalcorp is a coal mining, exploration and development company with interests in the La Francia coal mine and related infrastructure projects and a number of coal exploration properties, all located in Colombia. Coalcorp also holds a 60% equity interest in Carbones Colombianos del Cerrejon which owns the La Caypa coal mine in Colombia. Further information can be obtained by visiting our website at www.coalcorp.ca or under the Company's profile at www.sedar.com.

    
    Forward Looking Statements Disclaimer
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Statements made in this news release may be forward-looking and therefore subject to various risks and uncertainties. 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.

SOURCE Coalcorp Mining Inc.

For further information: For further information: Juan Carlos Gomez, Interim Chief Executive Officer, +57 - 1 - 658 - 5050 Ext: 9990; SENIOR NOTEHOLDER INFORMATION, Laurel Hill Advisory Group, 1-800-503-9439

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Coalcorp Mining Inc.

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