Cobalt Coal Ltd. Announces Production and Power Installation Update

CALGARY, ALBERTA -- (Marketwire) -- 06/05/12 -- Cobalt Coal Ltd. ("Cobalt" or the "Company") (TSX VENTURE:CCF) is pleased to provide the following updates:

-Production volume from its Westchester Mine doubled in May 2012 compared to the average monthly production achieved during the first 4 months of 2012;

-Installation of electric power from the power grid is proceeding with a scheduled completion date during the latter half of July or early August 2012.

The following factors have contributed to the increased production in May 2012:

--  improved mining conditions - the coal seam thickness has increased; 
--  improved clean coal recovery at the prep plant due to improved coal seam
    thickness ; and 
--  adding more maintenance employees has improved equipment uptime.

Mike Crowder, Cobalt's President and CEO, reports that having achieved production of 6,000 clean tons during the month and along with the 2012 sales price increase to $125 per ton from $110 in 2011 means that, for the first time in Cobalt's history, monthly production revenue will exceed operating costs. "We are on the way, and once power installation is finished in about 2 more months, we will be able to task additional machinery underground that cannot now be operated by power from the diesel generator that is limited and prone to overload tripping. We remain confident that once the power problems that have been plaguing us are solved, production volumes from Westchester can be further increased."

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.

READER ADVISORY

Statements in this news release may contain forward-looking information. 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. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The Company's forward-looking information is expressly qualified in its entirety by this cautionary statement.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.