Canada Coal to Acquire an Additional 280,000 Acres of Coal Licences at Its Foshiem Peninsula Property

Canada Coal Inc. (the "Company" or "Canada Coal"), (TSX VENTURE:CCK) is pleased
to announce that it has applied for an additional 11 coal exploration licences
within the Fosheim Peninsula region on Ellesmere Island. Once granted, these
licences will add an additional 280,000 acres to Canada Coal's project area in
key areas surrounding planned exploration drill targets, taking the Company's
total coal licence holdings to 86 licences covering approximately 2,722,627
acres. The Company has a reasonable expectation that the additional coal
exploration licences will be granted in sufficient time to be included in the
planned Phase 2 exploration drilling program.


Multiple high quality thermal coal deposits were discovered on the Company's
arctic coal license areas located in Nunavut through its 2012 exploration
program. Well over 100 coal seams on the Company's Fosheim Peninsula project
area were assessed, resulting in the identification of extensive zones of
low-sulphur, low-ash, subbituminous, thermal coal. The Fosheim Peninsula is the
company's primary exploration target and one of six coal license areas currently
owned by the Company. 


Historic Coal Data Overview: http://www.canadacoal.com/index.php?page=historic_data

Braam Jonker, President and CEO of Canada Coal comments, "These strategic
acquisitions fortify the company's coal license holdings in key areas identified
throughout the 2012 exploration program.  Additional acreage has been applied
for in order to extend property borders in areas where high quality thermal coal
was discovered with low sulphur and low ash content.  We have now commenced
permitting for the upcoming Phase 2 exploration drilling program and anticipate
between 9,000-10,000 meters of drilling to be conducted."


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 Independent 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
to the Nunavut Coal Property, dated September 30, 2011 entitled "The Nunavut
Coal Project-Ellesmere Island and Axel Heiberg Island, Nunavut, Canada" as well
as an "Updated Independent Technical Report," dated November 26th, 2012,
prepared by Keith McCandlish, P. Geol., P. Geo., and Susan O'Donnell, P. Geol.,
of DMT Geosciences Ltd. (formerly Associated Geosciences Ltd.)., Calgary,
Alberta, Canada, a copy of each report 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Canada Coal Inc.
Braam Jonker
President and Chief Executive Officer
1-604-638-0971
[e-mail]
www.canadacoal.com