TORONTO, June 23, 2011 /CNW/ - Pacific Coal Resources Ltd. (TSX-V: PAK) announced today the commencement of exploration drilling at its high quality steam coal and asphaltite property at La Tigra; the completion of the new truck fleet delivery; an update on the Barranquilla Port, coke operation infrastructure, and the Company's new website; and an update on the previously announced investment option agreement. The Company also confirms its first quarter 2011 earnings release date.

Luis Carvajales, Chief Executive Officer of Pacific Coal, commented: "We are pleased that the Company is progressing according to plan. By exploring the upside potential at La Tigra, we aim to achieve a National Instrument 43-101 compliant technical assessment by the first quarter of 2012, which we expect will significantly increase our reserves and contribute to the organic production growth by late-2012. We anticipate timely execution of all of our active projects in order to achieve our growth objectives."

Exploration at La Tigra

Drilling at the La Tigra deposit began on June 19, 2011 with the objective of the preparation of a National Instrument 43-101 compliant technical report by the first quarter of 2012.

RM Tecnoperforaciones SAS was selected to undertake drilling operations at La Tigra after a competitive bid process. RM Tecnoperforaciones SAS is a renowned and reputable drilling services company, having rendered services to numerous multinational operating coal mines in Colombia.

Management estimates that production is still on track to commence in late-2012.

Update on delivery of new truck fleet

The Company's new truck fleet was delivered in full, including 100 trucks in total. Seventy of these trucks are expected to be in full operation by the end of the second quarter of 2011, serving both the La Caypa and La Divisa (Cerro Largo) mines. The balance of 30 trucks is expected to be fully operational early in the third quarter of 2011.  Transportes Sanchez Polo, known as Colombia's most reputable and experienced coal transport company, has been retained to provide fleet management and transport services for an initial one-year period allowing for annual renewals.

The commissioning of 70 trucks has increased the total truck fleet available to Pacific Coal to over 170 units, which covers the Company's export schedule comfortably for the balance of 2011.

Update on investment option agreement

Pacific Coal provided an update on the Investment Option Agreement (the "Agreement") with ALPHA, NDT and Bioenergy International Inc. ("BIOINT") previously announced on April 6, 2011. Pursuant to this Agreement, Pacific Coal has the right to acquire up to a 20% equity interest in BIOINT in exchange for a US$20 million investment. Pacific Coal agreed to advance US$5 million out of its US$20 million investment in BIOINT in exchange for a 5% equity interest and the Company agrees to fund the remaining US$15 million subject to the successful testing of Colloidal Coal in Water ("CCW") and Colloidal Asphaltite in Water ("CAW") within the 3-month period following the completion of such testing. The required samples have been collected and prepared by Pacific Coal.

The above mentioned US$20 million investment in BIOINT also grants the Company a carried interest up to US$20 million in a 50/50 joint venture with BIOINT to build one or more plants to produce and market CCW/CAW out of its mines in Colombia. It is expected that the first plant will cost approximately US$40 million. Accordingly, the Company will only need to contribute additional funds to the joint venture, if the cost of the plant(s) exceeds US$40 million. The plant(s) is to be operated by BIOINT and BIOINT would be entitled to an operating fee to cover operating costs and expenses, plus a 6% technology royalty on the sales of CCW/CAW from this plant(s). Pacific Coal will retain the right to sell the coal and/or asphaltite to the joint venture company at market prices.

Update on Barranquilla Port

The Company has received a technical review and financial assessment from Nathan Associates Inc., setting forth six conceptual alternatives with corresponding capital expenditure estimates for the development of the Barranquilla Port. Pacific Coal has requested further details on one of the proposed alternatives to determine feasibility. In the interim, soil surveys and topographical mapping are being conducted.

Pacific Coal is aiming to tender for detailed engineering, construction and procurement by the fourth quarter of 2011 pursuant to commissioning of the port starting in the third quarter of 2012.

Update on Coke infrastructure

Eighty beehive ovens are now operational and the Company expects to commence commercial production in the third quarter of 2011. The construction of an additional eighty beehive ovens is progressing on schedule and are expected to be commissioned in the third quarter of 2011.

Construction of crushing, blending and washing facilities is progressing according to schedule and are due to be commissioned in the third quarter of 2011.

Launch of Website

The Company's website is now live and can be accessed at News releases, financial reports, and investor presentations will be updated and posted to the website as they become available.

First Quarter 2011 results

Pacific Coal will be filing its first quarter 2011 earnings on June 29, 2011 after market close. A press release will be issued and will include a production update on La Caypa and Cerro Largo.

About Pacific Coal Resources Ltd.

Pacific Coal Resources Ltd. is a Canadian-based mining company focused on steam coal, coking coal, and asphaltite exploration, development and production from prospective producing, development-stage and exploration-stage properties in Colombia. The Company has acquired or entered into agreements to acquire various interests in several operating coal mines and projects, representing a substantive coal and asphaltite exploration and production area throughout Colombia. Pacific Coal is committed to implementing its exploration and development strategy with a comprehensive environment, safety and community program, meeting international standards of best practice.

Forward Looking Information:

This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Pacific Coal to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Pacific Coal disclaim, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. 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. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

SOURCE Pacific Coal Resources Ltd.

For further information:

Miranda Smith
Investor Relations
(647) 427-0208

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Pacific Coal Resources Ltd.

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