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      News Release - Thursday, May 26, 2011
      Construction Activity At Verticalnaya Mine Project
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Vancouver, Canada - EastCoal Inc. (TSX-V: ECX)(the "Company" or
"EastCoal") is pleased to report that, following the commencement of
de-watering the lower levels of the main Verticalnaya shaft mine, it is
now rehabilitating some 120 metres of previously flooded roadways. The
general condition of these roadways is good, requiring only minor
repair in some sections. When the water level has been lowered a
further 40 metres and following the re-establishment of a ventilation
circuit, access will be obtained to a former conveyor roadway that is
planned to be part of a new conveyor drift system. That system will
eventually transport coal by high-speed conveyor from the deep H8 seam
to surface.

In the shaft bottom area, some 200 metres of roadways have been
repaired. This will permit waste materials from construction and repair
works to be transported by mine-car to the shaft for hoisting.

At the Verticalnaya North drift mine, supports are being strengthened
and the first 50 metres from the portals of each of the two new access
drifts is being encased in concrete for improved stability and safety.
These drifts will provide early access to the shallower H11 coal seam.
The strengthening is a precautionary measure and is in response to
evidence of loading of arch supports in the high-wall entry point of
the drivages. This work will take approximately 6 weeks in the conveyor
drift and 4 weeks in the auxiliary drift. It is now expected that the
coal seam will be intersected in July with bulk samples of coal to be
mined for analysis during August. This will permit the Company to
supply potential customers and financial institutions with firm
specifications of the products to be produced from the H11 coal seam.

The Company is also developing plans to mine a bulk sample from the H8
seam, to be carried out whenever dewatering and rehabilitation permits.

The Company expects it can step-up the pace of future development at
Verticalnaya North to recover the time being taken to strengthen the
drifts there. It expects that the key milestone of establishing the
first longwall in the first quarter of 2012 will be met. There is no
change in the production tonnages planned for 2012.

Surface works at Verticalnaya North are on plan. These include
construction of the main electrical sub-station, settling tanks for
mine water, fire-fighting water storage tanks and a pump-house. A
modular, natural medium 400 tonnes per hour "barrel washer" plant is
being constructed in England under contract, for installation by the
first quarter of 2012. This will process the coal to be produced from
the H11 seam until a central processing plant, servicing both the H11
and H8 seams is installed in 2014.

By Order of the Board,

John Byrne
President
 
About EastCoal Inc.

The Company changed its name to EastCoal Inc. in early 2011, to reflect
its new strategy of developing coal operations. It is focused on the
Donbass coal basin of Ukraine which has large coal reserves and
excellent prospects.

EastCoal Inc. is currently developing its 100% owned Verticalnaya
anthracite mine.

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR
DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED
HEREIN.  THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES
LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S.
PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

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Copyright (c) 2011 EASTCOAL INC. (ECX)  All rights reserved.  For more
information visit our website at http://www.eastcoal.ca/ or send
mailto:lmyles@telus.net
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