ACQUISITION – Western Canadian Coal completes Falls Mountain deal

VANCOUVER - WESTERN CANADIAN COAL has signed a definitive agreement with CAMBRIAN MINING of London, U.K., for the sale of FALLS MOUNTAIN COAL to Western by Cambrian. Falls Mountain owns the Willow Creek coal properties, wash plant and rail loadout facilities in northeast British Columbia.

Western expects a number of benefits to accrue from the Falls Mountain acquisition. The cost of bringing Western's Brule mine to full capacity will be trimmed by $70 million and no wash plant will need to be built at Brule. Reserves will jump 18% to over 87 million tonnes. Production of pulverized coal injection (PCI) coal from Willow Creek could begin as early as September 2008. Synergies between Brule and Willow Creek will also result in lower operating costs.

More on Western's plans to take advantage of high coal prices is available at www.WesternCoal.com.