Cobalt Coal Ltd. Announces the 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 intends to complete a private
placement of up to $100,000 of convertible redeemable debentures (the
"Debentures"), which will mature 24 months from the date of issuance (the
"Maturity Date") and will bear interest at a rate of 12% per annum payable on
the Maturity Date (the "Debenture Offering"). The terms of the Debenture
Offering are the same as the offering of Debentures that was completed on June
8, 2012 as previously announced. 


The Debentures will be convertible into units (the "Units") with each Unit
comprised of one common share of the Corporation and one warrant to acquire a
common share of the Corporation at an exercise price of $0.20, on the basis of
6,666 Units per $1,000 principal amount of Debentures and interest, subject to
regulatory approval. 


The Corporation intends to use the proceeds from the Debenture Offering for
payment of the due diligence expenses related to mezzanine debt financing
options being pursued by the Corporation. 


The Debenture Offering is subject to the approval of the TSX Venture Exchange.
Pursuant to applicable securities laws, all securities issued pursuant to the
Debenture Offering will be subject to a hold period of four months following the
closing of the Debenture Offering.


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. 


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 Debenture Offering and the timing of
closing of the Debenture 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.