Cobalt Coal Ltd. Announces the Closing of Private Placement of Convertible Debentures

Cobalt Coal Ltd. (formerly Cobalt Coal Corp.) (TSX VENTURE:CCF) ("Cobalt" or the
"Corporation") is pleased to announce that it has closed the final tranche of
its previously announced non-brokered private placement (the "Offering"). Cobalt
issued an additional $100,000 principal amount of unsecured, convertible,
redeemable debentures which bear interest at a rate of 12% per annum payable
upon maturity (the "Debentures") at a price of $1.00 per $1.00 principal amount
of Debenture for gross proceeds of $100,000. 


The Debentures will mature 24 months from the date of issuance and are
convertible, by either the holder or the Corporation, into units (the "Units")
of the Corporation at a conversion rate of $0.15 principal amount of Debenture
per Unit. Each Unit will be comprised of one common share in the capital of
Cobalt and one common share purchase warrant (a "Warrant"). Each Warrant is
subject to vesting conditions and will entitle the holder to acquire one common
share at $0.20 per share of Cobalt for a period of two (2) years from the
closing of the Offering.


As previously stated, the Corporation intends to use the proceeds from the
Offering to fund general working capital purposes, for the payment of expenses
related to the proposed acquisitions of Cobalt, as previously announced on March
8, 2012, and for the payment of expenses related to the Offering. 


Pursuant to applicable securities laws, all securities issued pursuant to the
Offering will be subject to four month hold period expiring on October 7, 2012.


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. 


Neither TSX Venture Exchange nor its Regulation Service Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.


The securities of Cobalt being offered have not been, nor will be, registered
under the United States Securities Act of 1933, as amended, and may not be
offered or sold within the United States or to, or for the account or benefit
of, U.S. persons absent U.S. registration or an applicable exemption from U.S.
registration requirements. This release does not constitute an offer for sale of
securities in the United States.


READER ADVISORY

Statements in this news release may contain forward-looking information
including the use of proceeds from the Offering. 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.