EastCoal Inc.-312,000 Tonne Sale Agreement Reached
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 1, 2012) - EastCoal Inc. (TSX VENTURE:ECX) (the "Company" or "EastCoal") is pleased to announce that its off-take agreement with Metinvest Holdings LLC ("Metinvest") for the purchase of metallurgical coal from its Menzhinsky coking coal mine in Ukraine ("Menzhinsky") has been extended to December 31, 2013 and the tonnages have been increased to 312,000 tonnes per annum with a shipping volume of 26,000 tonnes per month starting January 2013. Additionally, Metinvest has agreed to accept 12,000 tonnes of coal per month for November 2012 and December 2012, doubling its current off-take. The coal has to comply with Metinvest's quality standards and will be priced at the then prevailing market prices.
The Chairman of EastCoal, Mr. John Byrne, commented:
"With this agreement, the Company has secured the sale of 100% of its planned production from the underground mining operations at the Menzhinsky mine and the anticipated output from the wash plant at the same mine through December 2013. At current market prices, excluding VAT, this would result in excess of $40 million of revenue."
By Order of the Board,
John Byrne, Chairman
About EastCoal Inc.
EastCoal Inc. is currently producing coking coal from its 100% owned Menzhinsky mine and developing its 100% owned Verticalnaya anthracite mine.
This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking information. These and all subsequent written and oral forward-looking information are based on estimates and opinions on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, EastCoal assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change. Completion of the transaction described herein will be subject to numerous conditions, including the negotiation and execution of definitive agreements. There can be no assurance that the transaction will be completed as proposed or at all.
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