Coalspur Mines Limited announced that the Marketable Coal Reserves of the Vista Coal Project has increased to 313 million tonnes as part of the ongoing Bankable Feasibility Study. This represents a 20% increase in the Marketable Coal Reserves over the 260Mt estimated in the Pre Feasibility Study.

Highlight

1. Proven and Probable Marketable Coal Reserves on Vista increase 20% to 313 million tonnes from 260 million tonnes

2. Recoverable Coal Reserves increase by 8% to 566 million tonnes

3. Increase in Marketable Coal Reserves attributable to a larger pit limit, clean coal yield improvement and a refined mining and coal recovery plan 4. 30 year mine life on Vista with forecasted annual production of 11.2 million tonnes per annum saleable coal and a life of mine clean coal strip ratio of 9.3

4. BFS on schedule for publication in early 2012 following completion at the end of 2011

The increased Marketable Coal Reserves are attributable to a larger pit limit, clean coal yield improvement and a refined mining and coal recovery plan. Following the completion of the updated reserve estimate the BFS is on schedule for completion at the end of December 2011 with publication in early 2012.

Recoverable Coal Reserve

In million tonnes

Marketable Coal Reserve

In million tonnes

Strip Ratio

Mr Gene Wusaty MD and CEO of Coalspur Mines Limited said "A 20% reserve increase over the PFS combined with a lower strip ratio in the BFS verifies the size and quality of Vista and its status as a world-class, tier-one coal asset. The expanded production rate to 11.2 million tonnes per annum coupled with the increase in marketable reserves positions Vista to be a strategic source of high quality export thermal coal to the Asian Pacific economies for 30 years."