Cobalt Coal Ltd. Announces Financing Facility

CALGARY, ALBERTA--(Marketwire - Jan. 11, 2013) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Cobalt Coal Ltd. (TSX VENTURE:CCF) ("Cobalt" or the "Corporation") is pleased to announce the signing of a loan facility term sheet (the "Facility Term Sheet") pursuant to which a United Kingdom based lender (the "Lender") will provide a loan (the "Facility") to the Corporation subject to the completion and registration of formal security documentation and the Lender's due diligence thereon. Proceeds from the Facility will be used to reimburse advances made by a non-arm's length party to the Corporation including advances used to close the recent acquisition of metallurgical coal properties in Virginia, USA as described in Cobalt's news release of December 19, 2012 (the "Virginia Acquisitions").

The Facility Term Sheet contemplates a total Facility of up to $1,750,000. The Facility will have a term of one (1) year and will bear interest at a rate of 10% per annum. Cobalt will pay a Facility fee to the Lender in the amount of $350,000 by the issuance of 7,000,000 common shares in the capital of Cobalt which will be subject to a four month hold period. The remaining non-arm's length debt and the promissory note that was granted to the vendors in connection with the KMH Energy Corporation component of the Virginia Acquisitions will be subordinated to the Facility.

The entering into of the Facility and the issuance of common shares in connection with the payment of the Facility fee remain subject to the approval of the TSX Venture Exchange Inc.

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.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Reader Advisory

This News Release contains certain forward-looking statements and other information (collectively "forward-looking information") about the Corporation's current expectations, estimates and projections. Forward-looking information is often identified by words such as "anticipate", "intend", "believe", "expect", "plan", "could", "focus", "proposed", "scheduled", "potential", "may" or similar expressions and includes, but is not necessarily limited to, suggestions of future outcomes, including statements about the Facility Term Sheet, the Facility, the Virginia Acquisitions and the issuance of common shares. Readers are cautioned not to place undue reliance on forward-looking information as the Corporation's actual results may differ materially from those expressed or implied in the forward-looking information.

Developing forward-looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to the Corporation and others that apply to the industry generally. The factors or assumptions on which the forward-looking information is based include without limitation: assumptions inherent in our current guidance, including: foreign exchange and interest rates; the general activity of the coal industry; the satisfactory completion of the Lenders due diligence; the closing of the Facility; the ability for Cobalt to complete the Virginia Acquisitions and other risks and uncertainties described from time to time in the filings Cobalt makes with securities regulatory authorities. Actual results could differ materially from those currently anticipated due to a number of factors, risks and uncertainties. Such risks and uncertainties include, without limitation, risks associated with the ability of Cobalt to fund its ongoing capital requirements; delays resulting from or inability to obtain required regulatory approvals; the impact of general economic conditions in Canada, the United States and globally; industry conditions; changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced; increased competition; the lack of availability of qualified personnel or management; fluctuations in foreign exchange or interest rates; and stock market volatility. Readers are cautioned that the foregoing list of factors is not exhaustive.

All subsequent forward-looking statements, whether written or oral, attributed to Cobalt or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Additional information on the foregoing risks and other factors that could affect Cobalt's operations are on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking statements contained in this News Release are made as at the date of this News Release and Cobalt does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Neither the TSX Venture Exchange Inc. 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.

Contact:

Cobalt Coal Ltd.

Al Kroontje

Director

403-607-4009

al@kasten.ca

Cobalt Coal Ltd.

Robert Gillies

CFO

403-538-8455

bob.gillies@sympatico.ca

Cobalt Coal Ltd.

Mike Crowder

President & CEO

423-323-2396

mike@cobaltcoalcorp.com

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