Cobalt Coal Ltd. Announces Extending Agreements

Cobalt Coal Ltd. ("Cobalt") (TSX VENTURE:CCF), announces it has entered into
extension agreements in relation to the previously announced substantial
property acquisitions on March 8, 2012. Those agreements extend the closing date
for the acquisitions to no later than October 31, 2012 (the "Extending
Agreements").


The Extending Agreements

The Extending Agreements were required due to the delays Cobalt experienced in
completing the extensive National Instrument 43-101, Standards of Disclosure for
Mineral Projects, compliant technical report on the leases to be acquired. While
the Extending Agreements do not contemplate a change to the total purchase price
of $15MM (the "Purchase Price"), they do require Cobalt to make additional
funding commitments between now and the extended closing date as follows:




1.  Cobalt must provide an additional $250,000 deposit by July 15, 2012.
    This deposit, together with the previous deposit of $500,000, will
    become non-refundable as Cobalt has completed its due diligence on the
    leases to be acquired. The full deposit of $750,000 will be credited
    towards the Purchase Price; 
2.  Cobalt must pay an additional $150,000, payable in 3 equal monthly
    payments of $50,000 as recoupable advance minimum royalties; 
3.  Cobalt must place a $150,600 bond deposit with the Virginia Department
    of Mines, Minerals and Energy and maintain the existing permit that
    allows mining operations to be conducted on the Mill Creek Tract; 
4.  Cobalt must spend a minimum of $200,000 on mine "face up" improvements
    on the Mill Creek Tract; and 
5.  Cobalt must drill a minimum of 5 test holes on the lands to be leased,
    each to a depth that tests the Pocahontas No. 3 coal seam, and provide
    the information obtained from those test holes to the Vendors.



In exchange for Cobalt making these additional funding commitments, however, the
method by which the purchase price may be paid to the vendors has been expanded
to include an option for Cobalt to pay the purchase price in 4 annual
installments as follows:




1.  $1,000,000 on Closing (on or before October 31, 2012); 
2.  $3,250,000 on the first anniversary of Closing; 
3.  $4,500,000 on the second anniversary of Closing: and 
4.  $5,500,000 on the third anniversary of Closing.



In the event Cobalt elects this option, interest of 5% per annum will be payable
on the outstanding balance of the purchase price.


Commenting on having now finalized the Extension Agreements, Mike Crowder,
Cobalt's President and CEO commented "I'm very pleased that all parties were
able to agree to these amended terms such that we can proceed with the steps
needed to place the first of many mines into production. The high quality mid
vol metallurgical coal contained on the lands continues to command attractive
prices in the domestic and international markets".


About Cobalt

Cobalt is a publicly traded coal exploration and production company
headquartered in Calgary, Alberta, Canada with a regional office in Welch, West
Virginia USA. Cobalt was created to capitalize on the growth opportunities that
exist in the metallurgical coal mining industry. 


READER ADVISORY

Statements in this news release may contain forward-looking information
including the closing of the proposed acquisition, the availability of funds to
pay the purchase price for the proposed acquisition and the timing of closing
the proposed acquisition. The reader is cautioned that assumptions used in the
preparation of such information may prove to be incorrect. Events or
circumstances may cause actual results to differ materially from those
predicted, a result of numerous known and unknown risks, uncertainties, and
other factors, many of which are beyond the control of the Company. These risks
include, but are not limited to, the risks associated with the coal mining
industry, commodity prices and exchange rate changes. Industry related risks
could include, but are not limited to, operational risks in exploration,
development and production, delays or changes in plans, risks associated to the
uncertainty of reserve estimates, health and safety risks and the uncertainty of
estimates and projections of production, costs and expenses. The reader is
cautioned not to place undue reliance on this forward-looking information.