Phoenix Coal signs definitive agreement for the sale of Gryphon for US$23

LOUISVILLE, KY, March 17 /CNW/ - Phoenix Coal Inc. (TSX: PHC) ("Phoenix" or the "Company"), announced today that it has entered into a definitive agreement to sell the Gryphon reserve, which is comprised of the property leases controlled through the acquisition of Pact Resources, LLC and the Petersburg sublease, and certain other associated assets (the "Gryphon Assets") to a major U.S. coal producer (the "Acquirer"). The proceeds from the sale of the Gryphon Assets are US$23 million in cash (the "Transaction").

Upon closing of the Transaction, Phoenix will have divested all of its material coal properties and is expected to have an estimated $56.2 million of restricted and unrestricted cash.

"We have generated a significant amount of cash from the sale of our coal assets," said David A. Wiley, President and CEO of Phoenix Coal Inc. "In so doing, we have positioned the Company to redeploy its capital in compelling opportunities in the natural resources and mining sectors. Members of our management team and board of directors have a long track record of consistently creating shareholder value in the mining sector, and we are in the process of evaluating potential acquisitions."

The Company plans to provide a detailed update of its near-term growth plans on March 26, 2010 when it announces its 2009 financial results.

Approvals and Closing the Transaction

The Transaction is subject to the approval of Phoenix's shareholders and other customary closing conditions. The Board of Directors of Phoenix has unanimously approved the terms of the definitive agreement and will recommend that the Company's shareholders approve the Transaction. The Transaction is expected to be completed following the meeting of shareholders, which is planned for late April 2010 (the "Meeting").

A management information circular describing the background to, and terms of the Transaction will be mailed to shareholders in advance of the Meeting. The management information circular will also be made available on the System for Electronic Document Analysis and Retrieval (SEDAR) at

About Phoenix Coal Inc.

Phoenix Coal is headquartered in Louisville, Kentucky. On March 17, 2010, the Company announced it entered a definitive agreement for the sale of the Gryphon Mining Complex, a coal property containing 46.1 million tons of proven and probable reserves and 28.6 million tons of measured and indicated resources. Phoenix plans to use the cash generated from the sale of its coal assets to create shareholder value by acquiring other growth-oriented assets in the natural resources and mining sector. For additional information, visit


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, without limitations, which forward-looking statements included the production run rate Phoenix expects to achieve at full production. 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; changes in mineral reserve and mineral resource estimates; 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.

SOURCE Elgin Mining Inc.

For further information: For further information: Joanna Longo, The Equicom Group, Investor Relations, (416) 815-0700 ext. 233,; Stephen McLean, Director of Corporate Communications, Phoenix Coal Inc., (502) 587-5900,

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