Pala Increases Stake in Coalcorp

    TORONTO, Oct. 6 /CNW/ - Pala Investments Holdings Limited ("Pala") today
announced that it has entered into a binding agreement to acquire ownership of
34,584,109 common shares (the "Shares") of Coalcorp Mining Inc. ("Coalcorp")
(TSX: CCJ), representing approximately 19.99% of the total number of common
shares currently issued and outstanding of Coalcorp. Including these shares,
Pala's total ownership on completion of the acquisition increases to
76,195,833 shares, representing approximately 44% of the issued and
outstanding common shares of Coalcorp.
    "Pala has been a cornerstone shareholder in several public companies and
we anticipate supporting Coalcorp in the same capacity," said Jan Castro,
Managing Director of Pala Investments AG, advisor to Pala. "We see significant
potential in Coalcorp's assets and we look forward to working with the company
to create value for all of Coalcorp's shareholders."
    Pala is located at 12 Castle Street, St Helier, Jersey JE2 3RT. Pala has
sole beneficial ownership of, or control or direction over, all of the
Coalcorp shares identified in this news release. The acquisition has been
agreed upon and will occur privately at a price in cash per Share of
C$1.53065. Pala intends to utilize its increased stake to influence the
business decision-making of Coalcorp and intends to seek to place nominees on
the board of directors of Coalcorp. Pala may acquire or dispose of any of its
shares in Coalcorp as market conditions warrant, but subject to applicable
regulatory restrictions. Pala has not entered into any agreements with respect
to the acquisition, holdings, disposition or voting of any securities of
Coalcorp, other than for a customary purchase and sale agreement with the
vendor. Pala is relying on the exemption contained in section 100.1 of the
Securities Act (Ontario) to complete the purchase and sale of the Shares on
the basis that it has agreed to purchase from a single vendor and at price
within the applicable regulatory limit.

    About Pala

    Pala Investments Holdings Limited is a US$1.2 billion multi-strategy
investment company with a particular focus on mining and natural resource
companies in both developed and emerging markets. Pala Investments' exclusive
investment advisor, Pala Investments AG, is a Switzerland-based team with
extensive experience within the mining and natural resource sectors. Pala
Investments seeks to assist companies in which they have long-term
shareholdings by providing strategic advice and innovative financing

    Certain statements in the press release are forward-looking statements
and are prospective in nature, including statements with respect to Pala's
future intentions regarding the Shares. Forward-looking statements are not
based on historical facts, but rather on current expectations and projections
about future events, and are therefore subject to risks and uncertainties
which could cause actual results to differ materially from the future results
expressed or implied by the forward-looking statements. These statements
generally can be identified by the use of forward-looking words such as "may",
"should", "will", "could", "intend", "estimate", "plan", "anticipate",
"expect", "believe" or "continue", or the negative thereof or similar
variations. Such statements are qualified in their entirety by the inherent
risks and uncertainties surrounding future expectations. Such forward-looking
statements should therefore be construed in light of such factors, and Pala is
not under any obligation, and expressly disclaims any intention or obligation,
to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

For further information:

For further information: Media: John Lute, Lute and Company, (416)
929-5883 ext. 222

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