CCF

Cobalt Coal Ltd. ("Cobalt" or the "Company") (TSX VENTURE:CCF), is pleased to
report that it has received conditional approval from the TSX Venture Exchange
for the restructuring transactions described in Cobalt's July 22, 2011 press
release. 


Cobalt is also pleased to report that over 90% of the holders of Units in
Westchester Coal Limited Partnership (the "Partnership") have accepted the offer
made to them by the Company. Upon closing of the acquisition of the Units,
Cobalt intends to acquire 100% of the Units of the Partnership using the squeeze
out provisions contained in the limited partnership agreement governing the
Partnership meaning that the Partnership will become a wholly-owned subsidiary
of the Company. Cobalt will issue a total of 1,718,640 common shares to holders
of Units as consideration for the acquisition of their Units. 


Cobalt has continued to produce coal during this restructuring phase of the
Company with coal sales volumes continuing to improve such that a total of 3,725
clean tons were sold during June 2011. Management of Cobalt remains confident
that material improvements in sales volumes will occur after infrastructure
upgrades are completed and additional mining equipment is secured - to be
accomplished with the proceeds of the equity financings to occur in conjunction
with the restructuring, as previously announced. 


About Cobalt

Cobalt is a publicly traded coal exploration and production company
headquartered in Calgary, Alberta, Canada with a regional office in Welch, West
Virginia USA. Cobalt was created to capitalize on the growth opportunities that
exist in the metallurgical coal mining industry.                               


The securities of Cobalt being offered have not been, nor will be, registered
under the United States Securities Act of 1933, as amended, and may not be
offered or sold within the United States or to, or for the account or benefit
of, U.S. persons absent U.S. registration or an applicable exemption from U.S.
registration requirements. This release does not constitute an offer for sale of
securities in the United States.


READER ADVISORY

Statements in this news release may contain forward-looking information
including the timing of the equity financing and future sale volumes of the
Company. The reader is cautioned that assumptions used in the preparation of
such information may prove to be incorrect. Events or circumstances may cause
actual results to differ materially from those predicted, a result of numerous
known and unknown risks, uncertainties, and other factors, many of which are
beyond the control of the Company. These risks include, but are not limited to,
the risks associated with the coal mining industry, commodity prices and
exchange rate changes. Industry related risks could include, but are not limited
to, operational risks in exploration, development and production, delays or
changes in plans, risks associated to the uncertainty of reserve estimates,
health and safety risks and the uncertainty of estimates and projections of
production, costs and expenses. The reader is cautioned not to place undue
reliance on this forward-looking information.

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