Pacific Coal Resources Ltd announced its interim condensed consolidated financial statements for the three and nine months ended September 30, 2011, together with its Management's Discussion and Analysis for the corresponding period.

Third Quarter Highlights

1. Through the first nine months of 2011, production amounted to 1.2 million tonnes of coal. Pacific Coal is on track to produce 1.6 million to 1.8 million tonnes of coal in 2011.

2. Total revenues for the third quarter of 2011 increased to USD 46.5 million on the strength of 460,189 tonnes of coal sold at an average realized price of USD 101.01 per tonne. Total revenues for the first nine months of 2011 amounted to USD 118.9 million.

3. Operating costs in the third quarter of 2011 increased by approximately USD 9 per tonne, compared with the first half of 2011, mainly associated with an increase in the royalties at La Caypa, which are prepaid and expected to decrease going forward. Higher transportation and port services costs also impacted operating expenses and, with a full committed trucking fleet in place, these costs are expected to decline as well in coming quarters.

4. Pacific Coal has entered into a sales purchase agreement with LCC Group, an established energy services company based in Northern Ireland, for the supply of 700,000 tonnes per annum, commencing upon completion of deliveries under their existing contract and extending the relationship between the two companies to 2019. Management has estimated the value of this agreement at approximately USD 350 million based on conservative forward prices for coal.

5. Exploration at both the La Caypa and Cerro Largo mines has been undertaken in coordination with SRK pursuant to updating the National Instrument 43-101 technical reports in connection with open pit and underground resources at both mines.

6. Progress is being made in the expansion of installed capacity for coke production at CI Jam and activities associated with development of the Barranquilla port.

7. Exploration at La Tigra is progressing and geophysical studies have been undertaken (due to be finalized by mid-December); a NI 43-101 technical report is expected by the second quarter of 2012.

8. The Company commenced a Normal Course Issuer Bid in July 2011 and to-date has repurchased approximately 2% of its issued and outstanding common shares for cancellation.

Mr Luis Carvajales CEO commented that "I am pleased with the progress the Company is making to implement mine plans at both La Caypa and Cerro Largo, which aim to progressively reduce costs, and ensure firm, guaranteed sales volumes going forward at contract prices at a premium to market. With a full trucking fleet now in place, we are in a good position to ramp up production at both Cerro Largo and CI Jam. Year to date, we produced 1.2 million tonnes of coal, which demonstrates a track record of execution over the last three quarters, and we remain on track to produce at our budgeted production target of 1.6 million to 1.8 million tonnes for the year."