Western Canadian Coal repays short-term debt with strong operating cash flows

    VANCOUVER, Aug. 1 /CNW/ - Western Canadian Coal Corp (TSX: WTN, WTN.WT
and WTN.DB and AIM: WTN) (the "Company" or "Western") announces that strong
operating cash flows has enabled a recent repayment of the US $30 million
short term debt facility that was provided by Audley European Opportunities
Master Fund.
    In addition, as a result of the expected continuation of strong operating
cash flows, the Company has entered into an agreement with Scotia Capital for
a US $50 million credit facility. This facility will provide the Company with
added financial flexibility in managing its cash flows.
    "With the record prices currently being received in the new coal year, we
are generating very strong cash flows which has enabled us to repay the
short-term debt facility from Audley early", said John Hogg, President and CEO
of Western Canadian Coal Corp. "We have also taken advantage of our
strengthened balance sheet to acquire financing that will help us both to
commence operations at Willow Creek Mine by October 2008 and to aid in the
expansion of the facilities at Willow Creek Mine sooner."

    About Western Canadian Coal

    Western Canadian Coal Corp. produces 3.7 million tonnes of high quality
metallurgical coal from three 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 15 years of coal reserves at
current production levels.

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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