Cobalt Coal Ltd. Announces Revised LOI Terms for Acquisition of KMH Energy Corporation

NOT FOR RELEASE IN THE UNITED STATES OF AMERICA

Cobalt Coal Ltd. (TSX VENTURE:CCF) ("Cobalt" or the "Corporation") is pleased to
announce that it has finalized the terms of the revised letter of intent
("Amended LOI") with the vendors ("Vendors") of the previously announced
acquisition of KMH Energy Corporation (the "Acquisition").


The Amended LOI, finalized on November 19, 2012, revises the original LOI
entered into by Cobalt involving the acquisition of metallurgical coal bearing
leases in Virginia, USA. Those leases are the subject of the amended NI 43-101
compliant technical report entitled "Resource and Reserve Evaluation Including
Pre-Feasibility Study, Steinman/ACIN Leases, Dickenson County, Commonwealth of
Virginia, USA" which Cobalt filed on Sedar on November 19, 2012.


The Amended LOI revisions are summarized as follows:



1.  A further non-refundable deposit of US$300,000 has been made to the
    Vendors; 
2.  Closing is to occur on or before December 14, 2012. On closing Cobalt is
    required to pay US$700,000 in cash and to issue the Vendors a
    US$13,250,000 promissory note with payment terms as follows: 
    a.  US$1,000,000 on or before November 30, 2014; and 
    b.  US$5,625,000 on or before November 30, 2015; and 
    c.  US$6,625,000 on or before November 30, 2016.
3.  A payment of US$70,000 has been made by Cobalt to the Vendors in order
    to enable the Vendors to begin mine face improvements in anticipation of
    production from the permitted Mill Creek tract; 
4.  A payment of US$151,100 has been made by Cobalt to the Vendors for
    funding a State of Virginia DMME reclamation performance bond in
    relation to the Mill Creek Tract;  
5.  The time period under which Cobalt must drill the previously
    contemplated 5 test holes has been extended from October 31, 2012 to
    July 31, 2013; and 
6.  Cobalt has undertaken to spend a minimum of US$500,000 on mine
    improvements on the Mill Creek tract on or before July 31, 2013, with a
    minimum of US$250,000 having been spent before May 31, 2013.



Closing of the Acquisition is subject to regulatory approval, including the
approval of TSX Venture Exchange. 


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. 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 Corporation. 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.


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
304-436-2390
[e-mail]