The Howard Group

News Release January 27, 2010
Cobalt Coal Corp . (TSX-V -CBT)

Cobalt Coal Corp. - Operational update, Mike Tymo hired as Project Acquisitions Consultant

17:48 EST Wednesday, January 27, 2010

CALGARY , Jan. 27 /CNW/ - Cobalt Coal Corp. (TSX-V: CBT) ("Cobalt" or the "Corporation") is pleased to issue this operational update on the progress being made on its Westchester Metallurgical Coal Mine ("Westchester") in McDowell County, West Virginia.

The Westchester Coal Mine was in production from Q4 2008 until the end of March, 2009 when Cobalt lost its coal sales contract due to the world recession and the related drop in demand for metallurgical (steel making) coal. The Mine was placed on care and maintenance at that time. The Corporation re obtained a coal sales contract from Alpha Natural Resources (NYSE: ANR) on January 19th, 2010 . Cobalt is now readying Westchester to re commence commercial production of low volatile, high grade metallurgical coal.

Specifically, contractors began to move onto the site late last week, and are currently upgrading the loadout area and coal tipple to bring these aspects of the Mine back into operational condition. Work on re connecting the power supply and telecommunications continues.

Cobalt President and CEO David M. Lewis commented "As the mine was recently in production, the Corporation does not expect to have to do extensive repairs or upgrades to the underground infrastructure and remains confident that it will be able to re start mining operations in March, 2010."

Additionally, the Corporation has engaged Mr. Mike Tymo as a Project Acquisitions Consultant. Mr. Tymo will advise Cobalt with respect to future coal acquisitions in the Appalachian region and elsewhere.

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."

About Cobalt:

Cobalt is a metallurgical coal acquisition and production company whose common shares are publicly traded on the TSX Venture Exchange. Cobalt is focused on the acquisition and development of known metallurgical coal deposits in the Appalachian coal producing region of the United States. The Corporation has its head office in Calgary, Alberta and has an operating office in Welch, West Virginia.

This news release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Cobalt. The forward-looking statements or information contained in this news release are made as of the date hereof and Cobalt does not undertake any 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.

 

For further information contact:

Cobalt Coal Corp.
The Howard Group Inc.

David M Lewis
President
Ph: (403) 262-5510
Fax: (403) 451-9906
Email: dlewis@cbtcoal.com


Investor Relations
Ph: (403) 221-0915
Fax: (403) 237-8387
Email: info@howardgroupinc.com
www.howardgroupinc.com

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.