Cobalt Coal Ltd. Announces Financing Facility

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES.


Cobalt Coal Ltd. (TSX VENTURE:CCF) ("Cobalt" or the "Corporation") is pleased to
announce the signing of a loan facility term sheet (the "Facility Term Sheet")
pursuant to which a United Kingdom based lender (the "Lender") will provide a
loan (the "Facility") to the Corporation subject to the completion and
registration of formal security documentation and the Lender's due diligence
thereon. Proceeds from the Facility will be used to reimburse advances made by a
non-arm's length party to the Corporation including advances used to close the
recent acquisition of metallurgical coal properties in Virginia, USA as
described in Cobalt's news release of December 19, 2012 (the "Virginia
Acquisitions").


The Facility Term Sheet contemplates a total Facility of up to $1,750,000. The
Facility will have a term of one (1) year and will bear interest at a rate of
10% per annum. Cobalt will pay a Facility fee to the Lender in the amount of
$350,000 by the issuance of 7,000,000 common shares in the capital of Cobalt
which will be subject to a four month hold period. The remaining non-arm's
length debt and the promissory note that was granted to the vendors in
connection with the KMH Energy Corporation component of the Virginia
Acquisitions will be subordinated to the Facility.


The entering into of the Facility and the issuance of common shares in
connection with the payment of the Facility fee remain subject to the approval
of the TSX Venture Exchange Inc.


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.


This press release shall not constitute an offer to sell or the solicitation of
an offer to buy nor shall there be any sale of the securities in any state in
which such offer, solicitation or sale would be unlawful. The securities have
not been registered under the United States Securities Act of 1933, as amended,
and may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements. 


Reader Advisory

This News Release contains certain forward-looking statements and other
information (collectively "forward-looking information") about the Corporation's
current expectations, estimates and projections. Forward-looking information is
often identified by words such as "anticipate", "intend", "believe", "expect",
"plan", "could", "focus", "proposed", "scheduled", "potential", "may" or similar
expressions and includes, but is not necessarily limited to, suggestions of
future outcomes, including statements about the Facility Term Sheet, the
Facility, the Virginia Acquisitions and the issuance of common shares. Readers
are cautioned not to place undue reliance on forward-looking information as the
Corporation's actual results may differ materially from those expressed or
implied in the forward-looking information. 


Developing forward-looking information involves reliance on a number of
assumptions and consideration of certain risks and uncertainties, some of which
are specific to the Corporation and others that apply to the industry generally.
The factors or assumptions on which the forward-looking information is based
include without limitation: assumptions inherent in our current guidance,
including: foreign exchange and interest rates; the general activity of the coal
industry; the satisfactory completion of the Lenders due diligence; the closing
of the Facility; the ability for Cobalt to complete the Virginia Acquisitions
and other risks and uncertainties described from time to time in the filings
Cobalt makes with securities regulatory authorities. Actual results could differ
materially from those currently anticipated due to a number of factors, risks
and uncertainties. Such risks and uncertainties include, without limitation,
risks associated with the ability of Cobalt to fund its ongoing capital
requirements; delays resulting from or inability to obtain required regulatory
approvals; the impact of general economic conditions in Canada, the United
States and globally; industry conditions; changes in laws and regulations
(including the adoption of new environmental laws and regulations) and changes
in how they are interpreted and enforced; increased competition; the lack of
availability of qualified personnel or management; fluctuations in foreign
exchange or interest rates; and stock market volatility. Readers are cautioned
that the foregoing list of factors is not exhaustive.


All subsequent forward-looking statements, whether written or oral, attributed
to Cobalt or persons acting on its behalf are expressly qualified in their
entirety by these cautionary statements. Additional information on the foregoing
risks and other factors that could affect Cobalt's operations are on file with
Canadian securities regulatory authorities and may be accessed through the SEDAR
website (www.sedar.com). Furthermore, the forward-looking statements contained
in this News Release are made as at the date of this News Release and Cobalt
does not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable securities
laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Cobalt Coal Ltd.
Al Kroontje
Director
403-607-4009
[e-mail]


Cobalt Coal Ltd.
Robert Gillies
CFO
403-538-8455
[e-mail]


Cobalt Coal Ltd.
Mike Crowder
President & CEO
423-323-2396
[e-mail]