Consolidated Tanager completes sale of Hinton coal property

    TORONTO, Feb. 23 /CNW/ - Consolidated Tanager Limited ("Tanager") is
pleased to announce the closing of its previously disclosed conditional sale
of Tanager's rights in five coal leases near Hinton, Alberta to CIPC Coal
Canada Ltd. ("CIPC"). At the closing as part consideration for the sale, CIPC
paid $2 million cash to Tanager and granted Tanager a 1% royalty on gross
sales revenue from sales of coal produced from the property. CIPC is required
under the terms of the sale to pay to Tanager a further $6 million cash on the
earlier of completion of a positive feasibility study and the date that is
three years from closing. A further $10 million cash is payable to Tanager on
the earlier of the achievement of production at a rate of 90,000 tonnes of
coal per month from the property and the date that is seven years from
closing. If CIPC fails to make the additional payments to Tanager when
required, the property will revert to Tanager in its entirety after which CIPC
will have no continuing interest in the property.

For further information:

For further information: C.A. Burns, President, (416) 422-5321, Toronto,
Ontario, Canada

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