EastCoal Inc.: Operations Update

EastCoal Inc. ("EastCoal" or the "Company") (TSX VENTURE:ECX)(AIM:ECX) is
pleased to announce that production has commenced at the Company's Verticalnaya
North Project ("VNP") in the Ukraine.


Commencement of production was three weeks later than scheduled due to a delay
in obtaining certain regulatory approvals. However, approval to commence
production has now been obtained and output is currently ramping up to the
budgeted 11,000 tonnes a month rate which, is currently expected to be achieved
by October, 2013. The approval of the Mine Development Plan is expected shortly.


The initial projected production rate of 4,000 tonnes a month is expected to be
achieved within the next month using simple mining techniques and the coal
produced will be toll treated at a wash plant adjacent to the mine.


The chairman of EastCoal, Mr John Byrne, said "Our immediate aim is to generate
positive cash flow from the operation and then look at funding alternatives for
expansion. We continue to believe VNP will be a low-cost producer and very
attractive at current coal prices. The initial production will provide important
information on specifications for potential customers."


Documentation for the previously announced rights offering to shareholders
(which is planned to produce further funding for the Company and which is
required to cover the working capital expended during the above period of delay)
is currently being prepared along with an updated technical report. 


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


This press release contains forward-looking statements and information that
involve, and will be subject to, various risks and uncertainties regarding
future events with respect to, in particular: (i) the expectations regarding the
11,000 tonnes per month production levels upon the ramping up of production at
Verticalnaya and the timing of the achievement of such production levels; (ii)
the expectations regarding the receipt and the timing of such receipt of the
Company's Mine Development Plan; (iii) the expectations regarding the 4,000
tonnes per month production levels and the timing of the achievement of such
production levels; and (iv) the intention that the previously announced rights
offering will produce further funding for the Company and cover working capital
over the period of production delays. 


With respect to forward-looking statements and information contained herein, we
have made numerous assumptions including among other things, assumptions about
the price of coal, anticipated costs and expenditures and our ability to achieve
our goals. Although our management believes that the assumptions made and the
expectations represented by such statements or information are reasonable, there
can be no assurance that a forward-looking statement or information contained
herein will prove to be accurate. Forward-looking statements and information by
their nature are based on assumptions and involve known and unknown risks,
uncertainties and other factors which may cause our actual results, performance
or achievements, or industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements or information. (These factors include, but are not
limited to, future production volumes and costs, costs for inputs, the ability
for the Company to raise sufficient working capital to achieve such production
volumes, political stability in the Ukraine, adverse weather conditions in the
Ukraine, labour disruptions and mechanical failures.)


See our Annual Information Form (under the Company's profile on www.sedar.com)
for additional information on risks, uncertainties and other factors relating to
the forward-looking statements and information. Although we have attempted to
identify factors that would cause actual actions, events or results to differ
materially from those disclosed in the forward-looking statements and
information, there may be other factors that cause actual results, performances,
achievements or events not to be anticipated, estimated or intended. Also, many
of these factors are beyond our control. Accordingly, readers should not place
undue reliance on forward-looking statements or information.. These
forward-looking statements and information are based on estimates and opinions
on the dates they are made and are expressly qualified in their entirety by this
disclaimer. Except as required by law, the Company assumes no obligation to
update forward-looking statements or information contained herein should
circumstances or management's estimates or opinions change.


FOR FURTHER INFORMATION PLEASE CONTACT: 
EastCoal Inc.
Abraham Jonker
President and Acting CFO
[phone]
[phone] (Cell)
www.eastcoal.ca


Cenkos Securities plc
Ken Fleming
[phone]


Cenkos Securities plc
Derrick Lee
Alan Stewart
[phone]


Tavistock Communications
Jos Simson
Emily Fenton
Mike Bartlett
[phone]