Grande Cache Coal Corporation provides the following update with respect to its previously announced plan of arrangement (the "Arrangement") with 1629835 Alberta Ltd a company indirectly jointly owned by Winsway Coking Coal Holdings Limited and Marubeni Corporation and formed for the purpose of completing the Arrangement.

The Minister of Industry, under the Investment Canada Act (Canada), has approved the Arrangement upon the basis that the Arrangement is likely to be of net benefit to Canada.

Completion of the Arrangement remains conditional on satisfaction of other conditions precedent such as the approval of the Hong Kong Stock Exchange to permit the Purchaser to complete the Arrangement. Subject to the satisfaction or waiver of these and all other conditions precedent, Grande Cache Coal anticipates that the Arrangement will be completed on or about February 28, 2012.

Upon completion of the Arrangement, the Purchaser will acquire all of the issued and outstanding common shares of the Corporation at a cash price of CAD 10.00 per share, for a total cash consideration of approximately CAD 1.0 billion. The details of the Arrangement are described in the Corporation's management information circular dated December 12th 2011 and the arrangement agreement which are available for review at www.sedar.com under the Corporation's profile.