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Press release from CNW Group

Coalspur Mines Limited - June 2012 Quarterly Report

Monday, July 30, 2012

Coalspur Mines Limited - June 2012 Quarterly Report23:44 EDT Monday, July 30, 2012PERTH, Western Australia, July 31, 2012 /CNW/ - Coalspur Mines Limited ("Coalspur" or "Company") (ASX: CPL) (TSX: CPT) is pleased to present its quarterly report for the three months ending 30 June 2012.Highlights:Ms Gill Winckler, a former senior BHP Billiton executive, was appointed President and CEO following the resignation of Mr Gene Wusaty. Ms Winckler's previous roles include Chief Development Officer of the Energy Coal division where she was responsible for BHP Billiton's thermal coal business development activities and project growth pipeline around the world (announced 30 May 2012).Completed a production optimization study on Vista which resulted in an increase in the forecast annual marketable coal production capacity to 12.0Mtpa from 11.2Mtpa (announced 26 April 2012).Submitted the regulatory applications necessary to construct, operate and commission Phase 1 of Vista. Approval of these applications is targeted for early 2013 with construction on Vista to commence thereafter (announced 2 May 2012).Acquired an additional 14,432 hectares of coal bearing leases in the Hinton region for C$13 million which are adjacent to the northeast boundary of Vista ("Vista Extension") (announced 30 April 2012).Increased the Company's Measured and Indicated Coal Resources to 1.7 Billion tonnes ("Bt") following:an initial Coal Resource estimate on Vista Extension, comprising 173.7 million tonnes ("Mt") in the Measured and Indicated Mineral Resource categories and 969.3Mt in the Inferred Mineral Resource category (announced 9 May 2012); anda substantial increase in the Vista South Coal Project ("Vista South") Measured and Indicated Coal Resources to 470.5Mt and an increase in the Inferred Coal Resource to 604.5Mt (announced 23 May 2012).The Company is continuing its process to identify strategic investment partners as part of the financing strategy to fund Phase 1 of Vista. Original expectations were to finalize this process by 30 June 2012, however, uncertain global markets and weak short-term coal prices have resulted in this process taking longer than anticipated.Subsequent to quarter end, the Company:Completed a scoping study on Vista Extension which confirms the potential for an economic and technically feasible underground longwall mine (announced 30 July 2012).Going ForwardThe Company is currently focusing on the financing, regulatory and technical efforts necessary to commence construction on Vista. Activities in the coming months are expected to include:Continue discussions with potential strategic investment partners;Progress the regulatory applications for Phase 1 of Vista;Progress the detailed design engineering on Vista;Progress negotiations with CN on the definitive transportation agreement; andContinue discussions with mining contractors who may be utilized during the construction phase and the initial years of mining at Vista.The full version of this news release is available on the Company's website at www.coalspur.com and SEDAR at www.sedar.com.Regulatory DisclosuresFor further information regarding the Vista Coal Project and Vista South Coal Project, including a description of Coalspur's quality assurance program, quality control measures, the geology, samples collected and testing procedures in respect of the projects, please refer to the technical report on the Vista Coal Project titled "Coalspur Mines Limited: Feasibility Study of the Vista Coal Project, Hinton, Alberta" dated January 26, 2012 and the technical report on the Vista South Project titled "Resource Estimate for the Vista South Coal Property" dated December 15, 2010, which are compliant with National Instrument 43-101 - "Standards of Disclosure for Mineral Projects" ("NI 43-101") and are available for review on SEDAR at sedar.com.Competent Person / Qualified Person StatementsThe information in this news release that relates to Recoverable Coal Reserves, mining engineering, mining capital cost, mining operating costs, and economic financial analysis is based on information compiled by Mr. David Leslie, who is a Member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta. Mr. Leslie is a full-time employee of Coalspur. Mr. Leslie has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a "Competent Person" as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' ("JORC Code"), and a "Qualified Person" under NI 43-101. Mr. Leslie has approved and consents to the inclusion of such information in this report in the form and context in which it appears.The information in this news release that relates to coal quality and process yield estimates to derive Marketable Coal Reserves, operating costs and capital costs related to coal crushing, coal handling, and infrastructure, coal crushing, handling, processing and thermal drying  is based on information compiled by Mr. Gordon Mudryk, who is a Member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta. Mr. Mudryk is a full-time employee of Coalspur. Mr. Mudryk has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a "Competent Person" as defined in the 2004 Edition of the JORC Code, and a "Qualified Person" under NI 43-101. Mr. Mudryk has approved and consents to the inclusion of such information in this report in the form and context in which it appears.The information in this news release that relates to Coal Resources is based on information compiled by Mr. John Innis, who is a Member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta. Mr. Innis is a full-time employee of Coalspur. Mr. Innis has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a "Competent Person" as defined in the 2004 Edition of the JORC Code, and a "Qualified Person" under NI 43-101. Mr. Innis has approved and consents to the inclusion of such information in this report in the form and context in which it appears.All other scientific and technical information in this Report is based on information compiled by Mr. David Leslie, who is a Member of the Association of Professional Engineers and Geoscientists of Alberta. Mr. Leslie is a full-time employee of Coalspur.  Mr. Leslie has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a "Competent Person" as defined in the JORC Code, and a "Qualified Person" under NI 43-101. Mr. Leslie has approved and consents to the inclusion of such information in this report in the form and context in which it appears.Forward Looking StatementsThis news release contains 'forward-looking information' that is based on the Company's expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the development of Vista, funding for the development of Vista, the outcome of any arrangements with partners which may provide future funding for the development of Vista or coal marketing arrangements for Coalspur, any reduction in costs for the development of Vista, the Company's feasibility study, the mine plan, drilling programs, time lines and completion dates, permits and approvals, an updated resource for Vista South, resource estimates on Vista Extension, business strategy, plans, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations, mineral reserves and resources, studies, results of exploration and related expenses. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as 'will', 'expect', 'potential', 'outlook', 'anticipate', 'project', 'target', 'likely', 'believe', 'estimate', 'intend', 'may', 'would', 'could', 'should', 'scheduled', 'plan', 'forecast', "evolve" or variations of such terms and similar expressions. Persons reading this news release are cautioned that such statements are only predictions, and that the Company's actual future results or performance may be materially different.Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, without limitation, inherent uncertainties and risks associated with mineral exploration; uncertainties related to the availability of future financing necessary to undertake activities on the Company's properties; uncertainties related to general economic conditions; uncertainties related to global financial conditions; risks related to the integration of businesses and assets acquired by the Company; risks associated with the Company having no history of earnings or production revenue; uncertainties related to the possible recalculation of, or reduction in, the Company's mineral reserves and resources; uncertainties related to the outcome of studies to be undertaken by the Company; uncertainties relating to fluctuations in coal price; the risk that the Company's title to its properties could be challenged; risks related to the Company's ability to attract and retain qualified personnel; uncertainties related to the requirement for ministerial approval for a change of control of the Company; risks relating to consultation with the public and aboriginal groups; uncertainties related to the competitiveness of the mineral resource industry; risks associated with the company's ability to secure adequate access to clean coal transportation infrastructure, risks associated with the Company being subject to government regulation, including changes in regulation; risks associated with the Company being subject to environmental laws and regulations, including a change in regulation; risks associated with the Company's need for governmental licenses, permits and approvals; uninsured risks and hazards; risks associated with fluctuations in foreign exchange rates; risks related to default by joint venture parties, contractors and agents; inherent risks associated with litigation; risks associated with potential conflicts of interest; risks related to effecting service of process on directors resident in foreign countries; risk associated with a potential financial misstatement due to error or fraud; uncertainties related to the Company's limited operating history; risks related to the Company's lack of a dividend history; risks associated with potential computer hardware or software failure; risks relating to short term investments; and uncertainties related to fluctuations in the Company's share price. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.In making the forward-looking statements the Company has applied several material assumptions which may prove to be incorrect, including, but not limited to, (1) that all required third party approvals will be obtained for the development, construction and production of its properties, (2) there being no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, power disruptions, damage to equipment or otherwise; (3) permitting, development and expansion proceeding on a basis consistent with the Company's current expectations; (4) currency exchange rates being approximately consistent with current levels; (5) certain price assumptions for coal; (6) production forecasts meeting expectations; (7) the accuracy of the Company's current mineral resource and reserve estimates; (8) labour and materials costs increasing on a basis consistent with the Company's current expectations; (9) that any additional required financing will be available on reasonable terms; and (10) assumptions made and judgments used in engineering and geological interpretation. There can be no assurance that forward looking 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.The Company disclaims any intent or obligation to update or revise any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.SOURCE: Coalspur Mines LimitedFor further information: Gill Winckler  President and CEO Telephone: +1 403 261 9971 Chris Borowski Investor Relations Telephone: + 1 403 767 6377