New Elk Coal Mine on target 

TORONTO - Cline Mining Corporation reported that since commencing the Rehabilitation Program at their New Elk Coal Mine in Las Animas County, Colorado on April 22, 2010, the New Elk underground coal miners have now completed installation and clean-up of roof support in two-thirds of the access slopes and have advanced to within 400 feet of the coal seam. These access slopes allow coal to be transported out of the mine and preparations are now being made for the installation of a conveyor system capable of transporting coal at a rate of 4200 tons per hour. Rehabilitation and upgrading of surface infrastructure has now begun on schedule with crews on site accessing existing equipment and preparing for installation of new processing equipment.

The underground and surface upgrades will allow the New Elk mine to commence first production in Q4 of 2010 to reach an annual capacity of 1.3 million tons in 2011, proceeding continuously to the production and sale of 3.0 million tons per year of metallurgical steelmaking coal annually slated for world export markets. The Mine has large in-place compliant coal resources and further significant increases in production over the 3 million ton annual rate can be contemplated in the future. At least ten local Trinidad businesses have been providing supplies and services on a regular basis as the Rehabilitation program continues at the New Elk Coal Mine near Trinidad, Colorado. The employment level at the mine has reached sixty people, at least half of which have been hired locally. Employment levels are expected to reach 450, providing needed jobs and additional support suppliers and independent contractors in the community. Cline's New Elk Coal Mine in Colorado has a long and successful history of producing and delivering high quality metallurgical (coking) coal from its underground mine in southern Colorado to the steel making industry. The mine has a measured and indicated coal resource of 315,000,000 tons of in-place coal, which was documented in the 2008 Behre Dolbear independent NI 43-101 Technical Report, followed by the Agapito Associates Inc. NI 43-101 compliant Technical Report of March 13, 2010. In addition to its coal resource, the coal mine assets include a coal preparation plant, product coal silos, buildings, railway right of way, surface real estate, conveyor systems, electrics, underground workings with mine portal access from the plant site, mine permit and a permitted coal refuse disposal site. The mine is accessed directly by paved highway from the town of Trinidad, southern Colorado. The company's address is BCE Place 161 Bay Street, 27th Floor, Toronto, ON M5J 2S1, 416-572-2002, fax: 416-572-2201, email: [email protected].