Coalcorp Provides Updated Default Status Report



    TORONTO, May 13 /CNW/ - Coalcorp Mining Inc. ("Coalcorp" or the
"Company") (TSX-CCJ) is providing its sixth Default Status Report in
accordance with National Policy 12-203: Cease Trade Orders for Continuous
Disclosure Defaults ("NP 12-203"). On February 6, 2009 Coalcorp announced that
it would delay the filing of its second quarter interim financial statements,
CEO and CFO certifications and related management discussion and analysis
(MD&A) for the three and six-month periods ended December 31, 2008 (the
"Second Quarter Interim Financials") beyond the filing deadline of February
16, 2009.
    On February 18, 2009 the Ontario Securities Commission (the "OSC") issued
a temporary management cease trade order related to the Company's securities
against the Chief Executive Officer and the then Chief Financial Officer
(Liliana Aleman has since stepped down from that role as announced on March
30, 2009) of the Company for so long as the Second Quarter Interim Financials,
and related certifications and MD&A are not filed. The issuance of such
management cease trade order does not affect the ability of persons to trade
in their securities of Coalcorp, other than the Chief Executive Officer and
Liliana Aleman, the former Chief Financial Officer. However, the OSC, in its
discretion, may determine at a later time that it would be appropriate to
issue a general issuer cease trade order affecting all of the Company's
securities.

    
    Status of Second Quarter Interim Financials
    -------------------------------------------
    

    As announced by the Company on April 30, 2009, the Second Quarter Interim
Financials have been prepared and are currently under final review by the
Company's auditor, Deloitte & Touche LLP ("Deloitte"). However as described in
the April 30th press release, certain information Deloitte has requested in
order to complete its quarterly review is currently unavailable and it is
uncertain when that information will become available. Accordingly, there is
no projected timeline for the completion of the review of the Second Quarter
Interim Financials by Deloitte. Further as also described in the April 30th
press release, Deloitte has advised the Company that it is unable to release
its review of the Second Quarter Interim Financials until the forensic experts
that have been engaged by the Company in connection with previously announced
internal investigations being conducted by the Company, have substantially
completed their investigations. Based on the foregoing, a target date or
anticipated timeframe for the filing of the Second Quarter Interim Financials
is presently undetermined.

    
    Delay in Filing of Third Quarter Interim Financials
    ---------------------------------------------------
    

    As a consequence of the current situation and the continued delay of the
Second Quarter Interim Financials, the Company will also be delayed in the
filing of its third quarter interim financial statements, CEO and CFO
certifications and related management discussion and analysis (MD&A) for the
nine month period ended March 31, 2009 (the "Third Quarter Interim
Financials") beyond the filing deadline of May 15, 2009. The Company will
release its Third Quarter Interim Financials as soon as it is practicable
following the release of its Second Quarter Interim Financials.
    The Company will continue to provide bi-weekly updates, as required by NP
12-203, until the required filings have been made and the Company is no longer
in default.

    
    Update Matters
    --------------
    

    The Company reports the below previously announced matters which are
material changes to the information contained in the fifth default status
report issued by the Company on April 30, 2009.
    On May 6, 2009, the Company announced that it declared force majeure
under its mining services contract with the Company's mine operator and
ordered the temporary suspension of its mining operations in the La Francia
coal mine. The force majeure was declared as a result of the notification by
one of Coalcorp's main customers that it is unable to accept coal shipments as
a result of mechanical issues associated with shiploading at the Santa Marta
port, as well as the continuing consequences of the Fenoco rail strike on coal
shipments from the La Francia mine. As a consequence of these events, coal
inventory at La Francia has reached levels which create an operational hazard.
The Company's mine operator presently disputes the Company's declaration of
force majeure and has refused to suspend operations.
    On May 4, 2009, the Company announced that Andean Coal Corporation B.V.I.
("Andean"), a subsidiary of Coalcorp, commenced an arbitration proceeding at
the ICC International Court of Arbitration against Xira Investment Inc.
("Xira") by delivering to the International Chamber of Commerce Secretariat a
Requisition for Arbitration. The dispute relates to alleged breaches by Xira
under a Sale and Purchase Agreement dated June 27, 2008 ("SPA") which sets out
the terms upon which Xira purchased 40% of the issued share capital of
Carbones Colombianos del Cerrejon S.A. ("CCC") from Andean.
    Among the breaches presented in the claim is that CCC management, under
the direction of Xira, entered into an extraordinary transaction with an
off-shore Panamanian entity. Andean believes this agreement was made without
any commercial rationale and without ascertaining the beneficial ownership of
the counterparty. Andean is asking an arbitration panel, among other things,
to declare that the SPA is null and void and, in the alternative, an Order
requiring Xira to pay damages to Andean for breach of the SPA.
    The Company confirms that, except as described herein and in its initial
default announcement and first default status report dated March 3, 2009, and
subsequent default status reports dated March 17, 2009, April 1, 2009, April
15, 2009 and April 30, 2009: (i) there has been no material change to the
information set out in its initial default announcement filed pursuant to NP
12-203; (ii) there has been no failure by the Company in fulfilling its stated
intention with respect to satisfying the provisions of the alternative
information guidelines set out in NP 12-203; (iii) there is no actual or
anticipated specified default subsequent to that disclosed in the initial
default announcement; and (iv) there is no other additional material
information concerning the affairs of the Company that has not been generally
disclosed.

    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.

    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.





For further information:

For further information: Joseph Belan, Interim Chief Executive Officer,
+57-1-658-5050 Ext: 9990

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Coalcorp Mining Inc.

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