Canada Coal Inc.: Extensive Thermal Coal Deposits Identified in Over 100 Coal Seams

Canada Coal Inc. (the "Company" or "Canada Coal"), (TSX VENTURE:CCK) is pleased
to announce the confirmation of multiple high quality thermal coal deposits on
its arctic coal license areas located in Nunavut. The 2012 exploration program
assessed well over 100 coal seams on the Company's Fosheim Peninsula project
area resulting in the identification of extensive zones of low-sulphur, low-ash,
subbituminous, thermal coal. Fosheim Peninsula is one of six coal license areas
owned by the Company. 


Field work, including geological mapping, sampling, geophysical permafrost
studies, and heritage studies focused on defining priority drill targets for an
upcoming diamond drill program. Results from 285 coal samples have been
classified according to ASTM Standards and range from subbituminous A coal to
lignite B. The study identified extensive zones of low-sulphur, low-ash,
subbituminous coal, suitable for use as thermal coal. An updated NI 43-101
technical report is being prepared by DMT Geosciences Ltd. of Calgary, Alberta
(formerly Associated Geosciences Ltd.). The full report will be available on the
Company's website within 45 days of this press release.


Braam Jonker, President & CEO of Canada Coal, states: "We are greatly encouraged
by the confirmation of extensive thermal coal deposits, with low sulphur and ash
content, on our Fosheim Peninsula coal license area. These discoveries help to
confirm the historic coal target size assessments throughout its arctic coal
properties. The next phase of exploration will include an upcoming drill program
to further define our thermal coal deposits and to explore for metallurgical
coal deposits at deeper levels. As our exploration programs progress, we are
committed to close cooperation with local communities and transparent
communication with all stakeholders." Mr. Jonker further states, "Canada Coal is
currently examining the potential for thermal coal on its arctic coal licenses
as a solution for the current energy crisis in Nunavut. The Company is actively
evaluating various fuel power generation technologies including coal to liquids
(CTL) and coal water slurry (CWS)." 


Throughout the field program 39 of the Company's 75 total coal exploration
licence blocks were assessed including: 22 licence blocks on Fosheim Peninsula,
8 licence blocks on Bache Peninsula, 1 licence block on Strathcona Fiord, and 8
licence blocks on Vesle Fiord. Fosheim Peninsula remains the primary exploration
target. 


Exploration of these license blocks included collection at 135 sample locations
with 285 individual samples taken in total. Upon completion of the field
program, samples were delivered to Birtley Coal & Minerals Testing Division of
Calgary, Alberta for testing. 


The 2012 exploration program was conducted over a 6 week period between June
16th, 2012 and July 30th, 2012. Variable personnel (15-18 people) were
positioned at Environment Canada's Eureka Weather Station and helicopter support
was utilized to access the project area. The crew included two teams of
geologists, a geophysics team, a heritage team (consisting of a paleontologist
and archaeologist), local guides, and aircraft personnel. 


Sites for detailed geologic mapping and strategic sampling were assessed based
on a priority ranking system established following several weeks of field
prospecting. Priority ranking was based on continuity of an exposure, structural
complexity of an area, and/or quality control sampling. Two geology teams
assessed these sites along with a paleontologist, archaeologist, and local
guide. Integration of mapping and sampling results to create a detailed
geological interpretation of the project area is ongoing.


As a result of the mapping and sampling program, several prospective coal zones
have been identified for further exploration. Type samples from each of the
zones are listed in the table below. 




----------------------------------------------------------------------------
             Target Coal Zones with Surface Sample Highlights(i)            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                        Seam                                                
                       Thick-  ADM%  RM%   ASH%  VOL%  FC%   S%  BTU/LB     
 Zone      Sample     ness (m)(adb) (adb)  (db)  (db)  (db) (db)  (db)   SG 
----------------------------------------------------------------------------
   1   2012-AGL-FN-003   7.8   6.82  8.76  5.25 41.20 53.55 0.26 11,530 1.38
      ----------------------------------------------------------------------
       2012-AGL-FN-005   5.0   7.29  6.61  2.71 42.29 55.00 0.15 11,476 1.38
      ----------------------------------------------------------------------
       2012-AGL-FN-001   3.1  13.38  7.59  4.26 39.30 56.44 0.29 11,930 1.35
----------------------------------------------------------------------------
   2   2012-AGL-FN-121   3.3  10.83  5.29  3.98 40.96 55.07 0.25 11,809 1.38
      ----------------------------------------------------------------------
       2012-AGL-FN-123   2.5  14.07  7.66  4.48 42.70 52.82 0.27 11,344 1.39
----------------------------------------------------------------------------
   3   2012-AGL-FN-136   2.0  11.73  1.05  9.45 39.49 51.06 0.25 11,017 1.44
      ----------------------------------------------------------------------
       2012-AGL-FN-138   2.4  11.32  3.69  6.59 40.18 53.24 0.25 11,635 1.42
----------------------------------------------------------------------------
   4   2012-AGL-FN-217   3.0  19.16  3.30 11.46 35.54 53.00 0.32 10,927 1.42
      ----------------------------------------------------------------------
       2012-AGL-FN-218   4.0  16.27  3.41  2.98 40.93 56.10 0.20 11,858 1.37
      ----------------------------------------------------------------------
       2012-AGL-FN-211   3.3  18.81  4.52  5.99 37.65 56.35 0.32 11,666 1.39
----------------------------------------------------------------------------
  (i)Multiple seams are present in all locations. Selected samples reported 
                  here only, results are averaged per seam.                 
----------------------------------------------------------------------------



Zone 1, located near the center of the Fosheim Peninsula area, consists of
multiple gently-dipping coal seams including a 7.8 metre and a 5 metre seam
along with several smaller seams exposed in a creek cut. Additional seams
outcrop to the east and west of the zone. The zone has been traced over a 5
kilometre strike length and is suspected to extend further through a zone of
tundra cover.


Zones 2 and 3 occur in the southern portion of the Fosheim Peninsula. Zone 2 is
characterized by broad rolling hills exposing at least eight thin seams at
surface (2-3 metres), and the Zone 3 is characterized by higher relief with
continuous zones of coal exposed in creek cuts. Coal quality throughout both
zones is consistently subbituminous A and additional seams at depth are likely
to be encountered through drilling based on regional mapping. Zones 2 and 3 have
been mapped over 6 and 5 kilometre strike lengths, respectively.


Zone 4 is located in the northern Fosheim Peninsula region, and is potentially a
continuation of Zone 1. Surface exposures in the area are not abundant; however
multiple seams on the order of 3-4 metres were evaluated along a creek cut. The
Company intends to drill several wildcat holes in the area to evaluate the
potential for additional coal at depth.


Additional work conducted over the 2012 field exploration program included
geophysical permafrost studies using ground penetrating radar and ground
resistivity equipment and as well as heritage studies to assist with future
project planning. 


In compliance with National Instrument 43-101, Standards of Disclosure for
Mineral Projects, Susan O'Donnell, B.Sc., P.Geol., of DMT Geosciences Ltd., is
the Qualified Person responsible for the accuracy of this news release.


About Canada Coal

Canada Coal is a publically listed company focused on coal exploration and
development in Nunavut. Through its two wholly-owned subsidiaries, Canada
Sovereign Coal Corp. and 5200 Nunavut Ltd., Canada Coal holds 75 active licenses
comprising approximately 2,442,627 acres located on Ellesmere Island and Axel
Hieberg Island in Nunavut (the "Nunavut Coal Property"). Canada Coal
commissioned a National Instrument 43-101 compliant technical report in respect
of the Nunavut Coal Property, dated September 30, 2011 entitled "The Nunavut
Coal Project-Ellesmere Island and Axel Heiberg Island, Nunavut, Canada" prepared
by Keith McCandlish, P. Geol., P. Geo., and Susan O'Donnell, P. Geol., of
Associated Geosciences Ltd., Calgary, Alberta, Canada, a copy of which is
available on SEDAR at www.sedar.com.



On behalf of the Board of Directors

Braam Jonker, President and Chief Executive Officer

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION 

This news release includes certain "forward-looking information" under
applicable Canadian securities legislation. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that, while
considered reasonable, are subject to known and unknown risks, uncertainties,
and other factors which may cause the actual results and future events to differ
materially from those expressed or implied by such forward-looking statements.
Such factors include, but are not limited to: general business, economic,
competitive, political and social uncertainties; delay or failure to receive
regulatory approvals; the price of mineral resources; and the results of current
exploration and testing. There can be no assurance that such statements will
prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward-looking statements. Canada Coal
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise,
except as required by law.