Western Canadian Coal enters into a definitive agreement to acquire Falls Mountain Coal Inc.



    TSX: WTN, WTN.DB and AIM: WTN

    VANCOUVER, Feb. 28 /CNW/ - Western Canadian Coal Corp (TSX: WTN and
WTN.DB and AIM: WTN) ("Western" or the "Company") announces that as
contemplated under the conditional agreement (the "Agreement") between the
Company and Cambrian Mining plc ("Cambrian") announced on December 3, 2007,
and the amendment to the terms of the Agreement, announced on February 25,
2008, the Company has entered into a definitive agreement in respect of the
sale of Falls Mountain Coal Inc. ("FMC") to Western by Cambrian.
    The Company believes that the acquisition of FMC will result in a number
of significant benefits, including:

    
    -   Capital cost savings of approximately $70 million in developing the
        Company's Brule mine to its full capacity;
    -   Increase the Company's run-of-mine coal reserves by approximately
        15.7 million tonnes or by 18%. The FMC reserves consist of
        approximately 60% PCI coal and 40% hard coking coal ("HCC");
    -   Allow the Company to begin producing PCI coal from Willow Creek as
        soon as September 2008 to take advantage of the record coal prices
        expected in coal year 2008;
    -   Increase Western's market presence as a global leader in the PCI coal
        market segment and through a blend of Wolverine and Willow Creek HCC,
        produce a premium HCC product unique to the marketplace; and,
    -   Synergies created between the Brule mine and Willow Creek mine which
        will reduce operating, transportation and overhead costs.
    

    Applicable rules of the Toronto Stock Exchange require that the
acquisition of FMC be approved by a majority vote of shareholders of the
Company other than Cambrian and its affiliates and associates. Based on the
recommendation of a special committee of independent directors of Western and
a fairness opinion, the Board of Directors of the Company will be recommending
that shareholders of Western approve the acquisition of FMC.
    Western will be holding a special meeting of the shareholders of the
Company on March 31, 2008 to consider the approval of the acquisition of FMC
and has established a record date for determining shareholders entitled to
receive notice of the special meeting on Thursday, February 28, 2008. Western
expects that the management information circular and related meeting materials
for the special meeting will be mailed out to shareholders of the Company in
early March.

    About Falls Mountain Coal

    FMC owns the Willow Creek coal properties, wash plant and rail load out
facilities and is located in northeast British Columbia. Willow Creek is
located close to Western's Brazion Group of assets, which includes the Brule
mine. The wash plant has a current annual capacity of 2.2 million tonnes. With
certain modifications, the wash plant can be expanded to approximately
3.0 million tonnes of annual capacity to handle coal from both Brule and
Willow Creek. The ability to process coal at Willow Creek's facilities will
eliminate the need for the Company to construct a wash plant and load out
facility at Brule. The Company expects to restart operations at Willow Creek
in the second quarter of fiscal year 2009 with initial plans to produce up to
60,000 tonnes per month of PCI coal.

    About Cambrian

    Cambrian is a diversified mining house that manages and supports
operations in coal and gold/antimony mining. It also has extensive exposure to
energy projects and related technologies, from oil shale assets through to
alternative energy projects, as well as exposure to traditional oil and gas
exploration and development.
    Cambrian has been instrumental in the past three years in supporting the
development of a number of mines and moving them into production. These
include: the Augusta gold and antimony mine in Victoria, Australia; the
Wolverine hard coking coal mine in Western Canada; the Dillon and Brule PCI
mines in Western Canada as well as underground metallurgical coal and
underground and surface thermal coal mines in West Virginia, USA.
    Cambrian, through its wholly-owned subsidiaries, currently holds
approximately 48.4 million common shares of Western, representing
approximately 42% of Western's issued and outstanding shares. Mr. John Byrne,
Chairman of Western, is also Chairman of Cambrian and holds approximately 6.9%
of the outstanding shares of Cambrian. Mr. John Conlon, a director of Western,
is also a director of Cambrian and holds approximately 0.9% of the outstanding
shares of Cambrian.

    About Western Canadian Coal

    Western Canadian Coal Corp. produces 3.1 million tonnes of high quality
metallurgical coal from two mines located in the northeast of British
Columbia. The Company also has interests in various coal properties in
northern and southern British Columbia and a 50% interest in the Belcourt
Saxon Limited Partnership, which was formed to explore and develop the
Belcourt and Saxon group of properties in northern BC. Currently, these
properties provide the Company with an estimated 25 years of coal reserves at
current production levels.

    Forward-Looking Information

    This release may contain forward-looking statements that may involve
risks and uncertainties. Such statements relate to the Company's expectations,
intentions, plans and beliefs. As a result, actual future events or results
could differ materially from those suggested by the forward-looking
statements. Readers are referred to the documents filed by the Company on
SEDAR. Such risk factors include, but are not limited to changes in commodity
prices; strengths of various economies; the effects of competition and pricing
pressures; the oversupply of, or lack of demand for, the Company's products;
currency and interest rate fluctuations; various events which could disrupt
the Company's construction schedule or operations; the Company's ability to
obtain additional funding on favourable terms, if at all; and the Company's
ability to anticipate and manage the foregoing factors and risks.
Additionally, statements related to the quantity or magnitude of coal deposits
are deemed to be forward-looking statements. The reliability of such
information is affected by, among other things, uncertainties involving
geology of coal deposits; uncertainties of estimates of their size or
composition; uncertainties of projections related to costs of production; the
possibilities in delays in mining activities; changes in plans with respect to
exploration, development projects or capital expenditures; and various other
risks including those related to health, safety and environmental matters.





For further information:

For further information: David Jan, Manager, Investor Relations &
Corporate Development, Phone: (604) 608-2692, Email: djan@westerncoal.com

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WESTERN COAL CORP.

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