Cobalt Coal Ltd.: Westchester- Updated NI 43-101 Technical Report Results

Cobalt Coal Ltd (TSX VENTURE:CCF) ("Cobalt" or the "Corporation") announces the
completion of an updated technical report that evaluates the coal resources on
Cobalt's Westchester Expansion Lease ("WEL") and updates the existing technical
report pertaining to Cobalt's original Westchester Mine leases ("WM").


As disclosed in Cobalt's news releases dated April 4, 2012 and April 17, 2012,
the signing of the WEL resulted in a material increase to the coal resources
attributable to Cobalt therefore triggering the necessity, pursuant to the
policies of National Instrument 43-101, to engage a qualified person to prepare
a technical report on the WEL.


As disclosed in Cobalt's October 11, 2012 news release regarding the placing of
a cease trade order against the securities of Cobalt by the Alberta Securities
("ASC"), the ASC determined that the contiguous nature of the WM and the WEL and
the fact that the WEL will be accessed from Cobalt's existing Westchester mine
portals also necessitated the requirement to update the 2009 Westchester
Technical Report prepared by Norwest Corporation ("Norwest") dated June 8, 2009
(the "2009 Norwest Report").


The qualified person for purposes of NI 43-101 responsible for the preparation
of the updated technical report is Terence Walker, M. Sc. P. Geo. The report was
prepared in accordance with National Instrument 43-101 Standards of Disclosure
for Mineral Projects ("NI 43-101") and is dated September 27, 2012 (the "Updated
Westchester Technical Report"). Mr. Walker has reviewed the contents of this
news release.


The following is a summary of the coal resources identified in the Updated
Westchester Technical Report:




                           COAL RESOURCES SUMMARY                           
                                                                            
----------------------------------------------------------------------------
                       In-Place Underground Clean Coal Resources (Tons)     
                 -----------------------------------------------------------
                                                Total Measured    Additional
STM Group             Measured     Indicated       & Indicated      Inferred
----------------------------------------------------------------------------
Bituminous           1,757,300             -         1,757,300             -
----------------------------------------------------------------------------



The Coal Resources estimated above are situated on 898.6 total acres comprising
777.6 acres of the "North Block" and the "South Block" of the original
Westchester Mine leases together with the 121 acre Westchester Expansion Lease.
The leases are contiguous to each other in that they share a common boundary.
The quantity of coal resources have been adjusted for all coal volumes produced
by Cobalt until the date of the Updated Westchester Technical Report. 


General Information

The following information is extracted from the Updated Westchester Technical
Report which is NI 43-101 compliant. A full text version of the Updated
Westchester Technical Report has been filed on SEDAR and is available at
www.sedar.com. 


Mr. Walker used the Canadian Institute of Mining, Metallurgy and Petroleum
("CIM") Definition Standards on Mineral Resources and Reserves ("CIM
Definitions") adopted by the CIM Council on November 27, 2010 during the
classification, estimation and reporting of mineral resources.


Mr. Walker conducted a physical inspection of the WEL and WM in advance of the
preparation of the Updated Westchester Technical Report. 


Basis of Presentation

The majority of the data reviewed to establish seam thickness and elevation has
been obtained from the active Westchester Mine and historical mining records
from currently abandoned underground mines. A total of ninety one structure
control points and seventy one seam thickness points were obtained from the mine
data and analyzed for purposes of estimating seam thickness and seam elevation.
In addition to previous mining records, surface outcrop data has been reviewed
and surface drilling and core data has been used to augment the geological and
mining data. Information from a total of five exploration drill holes was
reviewed during the evaluation.


Coal samples from the drill holes were analysed by different independent coal
testing laboratories for an extensive suite of coal quality parameters. The
average values and significant ranges for the more important parameters are:




--  The dry basis clean coal Ash averages 4.9 wt. %; 
--  The Ash Fusion Temperature is high; 
--  The Free Swelling Index ranges from 8.5 to 9; and 
--  The volatile matter (VM cc DB) ranges from 19.78 wt. % to 20.74 wt. %. 



This coal quality data supports the conclusion that the Coal Resources reported
in the Updated Westchester Technical Report may be classified as metallurgical
in nature.


The Updated Westchester Technical Report identifies the existence of
Metallurgical Coal Resources on the WL and the WEL in the Sewell seam which has
been historically proven to be high quality metallurgical coal. Volumes were
estimated in accordance with the methodology of GSC Paper 88-21.


2009 Norwest Report Update

The Updated Westchester Technical Report updates the coal resource volumes
reported in the 2009 Norwest Report, adjusted for production until the date of
the report.


In addition to providing a resource estimate, the 2009 Norwest Report included
an estimation of reserves. Mr. Walker noted in his report that economic changes
had occurred since the date of the 2009 Norwest Report. Additionally, changes in
the seam model had occurred as a result of actual results achieved from mining
operations conducted subsequent to the date of the 2009 Norwest Report. Mr.
Walker therefore concluded no reserves estimates could be confidently stated on
any of the resource areas until a complete mining feasibility study is
conducted. Therefore, the scope of the Updated Westchester Technical Report was
limited to a resource determination.


Recommendations of the Updated Westchester Technical Report

Mr Walker recommended that Cobalt commission a new economic and mining study of
both the WEL and WM to allow quantification of coal reserves. Mr Walker also
recommended that Cobalt continue to regularly review coal seam data, perform
geotechnical testing with a view to updating the geological database and mining
model as required, in support of preparing the new economic and mining study.


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 constitute "forward-looking" statements and
"forward-looking" information (collectively, "forward-looking statements") as
defined in applicable securities laws, which involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Corporation, or industry results, to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Forward-looking statements may
include, but are not limited to, statements regarding the quantity or quality of
mineral deposits. 


In certain cases, forward-looking statements can be identified by the use of
such words as "may", "would", "could", "will", "intend", "expect", "believe",
"plan", "anticipate", "estimate", "should", "provide" and other similar
terminology. These statements reflect the Corporation's current expectations
regarding future events and operating performance and speak only as of the date
of this News Release. Forward-looking statements are not a guarantee of future
performance and involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from those
anticipated in such forward-looking statements. 


Forward-looking statements involve significant risks and uncertainties, should
not be read as guarantees of future performance or results, and will not
necessarily be accurate indications of whether or not such results will be
achieved. Although the forward-looking statements contained in this News Release
are based upon what management of the Corporation believes are reasonable
assumptions, the Corporation cannot assure investors that actual results will be
consistent with these forward-looking statements. These forward-looking
statements are made as of the date of this News Release and are expressly
qualified in their entirety by this cautionary statement. Subject to applicable
securities laws, the Corporation assumes no obligation to update or revise them
to reflect new events or circumstances.


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


Cobalt Coal Ltd.
Robert Gillies
CFO
[phone]
[e-mail]


Cobalt Coal Ltd.
Mike Crowder
President & CEO
[phone]
[e-mail]