EastCoal Inc.: Proposed Share Consolidation and Mailing of Circular

EastCoal Inc. ("EastCoal" or the "Company") (TSX VENTURE:ECX) (AIM:ECX)
announces that as first detailed in the announcement of 3 June 2013 (4 June 2013
in the United Kingdom), the Company is convening a shareholder vote at the
Company's upcoming annual general meeting on 26 July 2013 (the "2013 AGM"), to
effect a consolidation of all of the issued and outstanding common shares of the
Company (the "Consolidation"), such that for up to every 20 common shares held,
each shareholder would receive one common share upon completion of the
Consolidation. The Company had intended for this to be on a five to one basis,
but the Company will ask shareholders to give the board of directors (the
"Board") authorization to fix the final ratio of pre-consolidation to
post-consolidation Common Shares to be used in the Consolidation (the "Final
Consolidation Ratio"). However, the Final Consolidation Ratio will not exceed 20
to one. The Consolidation will also be subject to TSX Venture Exchange approval
and admission of the consolidated shares to trading on AIM. Details of the Final
Consolidation Ratio and the expected trading dates for the newly consolidated
shares are expected to be announced shortly after the 2013 AGM.


As previously noted, the effect of the Consolidation will be to reduce the total
number of shares in issue following the Company's fundraising which closed on 7
June 2013 (the "Fundraising"). The Board believes that the Consolidation may
reduce the volatility in the price of the Company's common shares and may ensure
that the price of the common shares is more appropriate for a company of
EastCoal's size than would otherwise have been the case following the
Fundraising. 


Full details of the Consolidation have been included in the management
information circular (the "Circular") which the Company has filed with the
regulatory authorities in Canada and mailed to its shareholders in connection
with the 2013 AGM. All shareholders are urged to read the Circular. A copy of
the circular is available on EastCoal's SEDAR profile at www.sedar.com and will
also be posted to the Company's website at www.eastcoal.ca


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.


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]