Calgary, Alberta / ACCESSWIRE / October 24, 2014 / CanAm Coal Corp. (COE.V) (“CanAm” or the “Company”) announced today it is in the process of exploring strategic alternatives and opportunities in order to position the Company to generate additional shareholder value.

In late 2009, the Company embarked on a strategy of becoming a small to medium sized coal producer through a combination of the acquisition of producing coal assets and an accompanying organic growth strategy. All along, the Company consistently targeted high quality coals that would meet the new environmental regulations and which would service the local utility and industrial user markets. The Company successfully executed on this strategy and in the period 2010 to 2013, CanAm grew coal sales, revenue and EBITDA from 50,000 tons, $5 million and ($0.2) million to 680,000 tons in coal sales, $62 million in revenue and $10.5 million in EBITDA from operations. Through the second quarter of 2014, the Company delivered coal sales, revenue and EBITDA of 354,000 tons, $34 million and $5.3 million, an increase over 2013 of 11%, 15% and 18%, respectively. The significant growth that was achieved during this period is a testament to the quality of the Company’s coals and the extent of customer off-take contracts the Company was able to negotiate. Currently, the Company is fully contracted through the end of 2014, 75% of production has been sold into off-take contracts for 2015 and 2016 and 50% for the period 2017 to 2020.

For 2015 and beyond, the Company believes that it can continue to deliver modest growth and organically grow to about 1 million ton of coal production while delivering healthy EBITDA margins. However, given the current depressed coal markets, the challenging junior mining financing environment and the poor public market perception of the coal industry, the Company believes that its strategic goal of achieving annual coal production of 2 to 3 million tons in the foreseeable future will be very difficult to accomplish. Therefore, following a strategic review, the Board of Directors has mandated management to explore for other growth initiatives within the mining industry in order to enhance and improve shareholder value creation.

"The decision to evaluate options and alternatives follows a comprehensive review of the Company’s strategy and business direction by our Board of Directors" said Jon Legg, Chairman of the Board. “In order to position ourselves for the future and enable us to create shareholder value, it is imperative that we continue down this road of diversification but, at the same time, nothing about this review alters the Company’s commitment and continued investment in our coal franchise."

About CanAm Coal Corp.
CanAmis a coal producer and development company focused on growth through the acquisition, exploration and development of coal resources. CanAm’s main activities and assets include its four operating coal mines in Alabama. Other coal and resource related opportunities continue to be evaluated on an ongoing basis.

For Further Information:

CanAm Corporate Office:
Jos De Smedt, CEO
Tel: 403.262.3797
Toll Free: 1.877.262.5888
Email: jdesmedt@canamcoal.com

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SOURCE: CanAm Coal Corp.