Phoenix Coal Inc. Announces Receipt of Mining Permit for Pratt Mine



    LOUSVILLE, KY, Aug. 5 /CNW/ - Phoenix Coal Inc. (TSX: PHC), a leading
producer and consolidator of steam coal reserves in the Illinois Basin,
announced today that the Kentucky State Department of Natural Resources has
issued a mine permit to Phoenix's subsidiary Pact Resources, LLC for its Pratt
Mine in Webster County, Kentucky. The Pratt underground reserve is estimated
to possess 28.9 million tons of proven and probable reserves with an
additional 5.2 million tons of measured and indicated resource.
    "This permit will allow us to begin construction on the Pratt Mine which,
when brought online, is expected to significantly increase our production,"
said David Wiley, Chief Executive Officer of Phoenix Coal. "We have not made
any long-term sales commitments for the coal at the Pratt Mine, and as a
result our management team expects Phoenix to benefit from high prevailing
prices that currently exist in the thermal coal market."
    Phoenix is in the process of establishing equipment specifications with
manufacturers, and delivery dates have been targeted in advance of the planned
mine opening in 2010. Bid packages for the slope, ventilation shafts, and
surface facilities have been prepared and will be sent to contractors within
the next 45 days.
    Unless otherwise noted, all reserves and resources are expressed in
imperial tons. Information in this press release relating to mineral resources
or reserves is derived from the technical report prepared by Marshall Miller &
Associates, Inc. dated March 5, 2008, entitled "Technical Report on the Coal
Properties of Phoenix Coal Corporation in West Kentucky, USA, for Phoenix Coal
Corporation, Louisville, KY" and is as of December 31, 2007.

    About Phoenix Coal Inc.

    Phoenix Coal Inc. is an integrated mining operation producing
approximately 2.5 million tons of high sulphur, low chlorine, bituminous coal
annually from the Illinois Basin. To address the increasing demand for energy
in the Eastern US as well as in the export market, Phoenix Coal is pursuing
production growth through the focused acquisition, consolidation, and
extraction of coal assets. The Company's executive offices are located in
Louisville, KY and its operational headquarters are stationed in Madisonville,
KY.

    FORWARD-LOOKING STATEMENTS

    Certain information set forth in this press release contains
"forward-looking statements", and "forward-looking information" under
applicable securities laws. Except for statements of historical fact, certain
information contained herein constitutes forward-looking statements which
include management's assessment of Phoenix's future plans and operations and
are based on Phoenix's current internal expectations, estimates, projections,
assumptions and beliefs, which may prove to be incorrect. Some of the
forward-looking statements may be identified by words such as "expects"
"anticipates", "believes", "projects", "plans", and similar expressions. These
statements are not guarantees of future performance and undue reliance should
not be placed on them. Such forward-looking statements necessarily involve
known and unknown risks and uncertainties, which may cause Phoenix's actual
performance and financial results in future periods to differ materially from
any projections of future performance or results expressed or implied by such
forward-looking statements. These risks and uncertainties include, but are not
limited to: liabilities inherent in coal mine development and production;
geological, mining and processing technical problems; Phoenix's inability to
obtain required mine licenses, mine permits and regulatory approvals required
in connection with mining and coal processing operations; dependence on third
party coal transportation systems; competition for, among other things,
capital, acquisitions of reserves, undeveloped lands and skilled personnel;
incorrect assessments of the value of acquisitions; changes in commodity
prices and exchange rates; changes in the regulations in respect to the use of
coal; the effects of competition and pricing pressures in the coal market; the
oversupply of, or lack of demand for, coal; currency and interest rate
fluctuations; various events which could disrupt operations and/or the
transportation of coal products, including labor stoppages and severe weather
conditions; the demand for and availability of rail, port and other
transportation services; and management's ability to anticipate and manage the
foregoing factors and risks. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Phoenix
undertakes no obligation to update forward-looking statements if circumstances
or management's estimates or opinions should change except as required by
applicable securities laws. The reader is cautioned not to place undue
reliance on forward-looking statements.

    The TSX has neither approved nor disapproved of the contents of this
    press release.

    %SEDAR: 00025343E




For further information:

For further information: Thomas McMillan, The Equicom Group, (403)
536-5903, tmcmillan@equicomgroup.com

Organization Profile

Elgin Mining Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890