Canada Coal Inc announces that on November 4 2011, Canada Coal completed a brokered private placement of 6,500,000 flow through units at a price of USD 0.50 per Flow Through Unit and 2,100,000 subscription receipts at a price of USD 0.50 per Subscription Receipt for aggregate gross proceeds of USD 4,300,000.

The Offering represents the concurrent financing concurrent to be completed by Canada Coal in connection with the proposed amalgamation of Mercury Capital Limited and Canada Coal as announced by Mercury in its press release of July 7 2011 which Amalgamation shall constitute the qualifying transaction of Mercury. It was initially anticipated that the Concurrent Financing would be for minimum gross proceeds of USD 20 million however due to market conditions, the terms of the Concurrent Financing were amended.

Each Flow-Through Unit consisted of one flow-through common share in the capital of Canada Coal and one-half of one common share purchase warrant. Each whole Warrant shall entitle the holder to purchase one Canada Coal common share at a price of USD 0.80 per share until March 4 2014. If the written confirmation of the TSX Venture Exchange approving the Amalgamation and the listing of the shares of the entity resulting from the Amalgamation on the Exchange is not satisfied on or before March 4 2012, the number of Warrants per Flow-Through Unit shall be one as opposed to one-half of one.

Each Subscription Receipt entitles the holder to acquire one Resulting Issuer common share and one-half of one Resulting Issuer warrant upon the completion of the Amalgamation. Each whole Resulting Issuer Warrant shall entitle the holder to purchase one Resulting Issuer Share at a price of USD 0.80 per share until March 4 2014.

If the Release Condition is not satisfied on or before March 4 2012, each Subscription Receipt shall at such point and at no additional consideration to the holder be comprised of 1.1 Resulting Issuer Shares and 0.55 Resulting Issuer Warrants. If the Release Condition is not satisfied on or before April 4 2012, the Subscription Receipts will be cancelled and all proceeds from the sale of such subscription receipts shall be returned to the subscriber thereof.

In connection with the Concurrent Financing, Canada Coal paid cash commission of USD 301,000, and issued a total of 602,000 compensation warrants which represented 7% of the aggregate gross proceeds raised and 7% of the securities issued, to Casimir Capital Ltd Canaccord Genuity Corp and PowerOne Capital Markets Limited the agents in connection with the Concurrent Financing. Each compensation warrant entitles the holder to purchase one Canada Coal common share at a price of USD 0.80 per share until November 4 2014.