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Western Canadian Coal Corp

Thursday, July 5th, 2007

Western Canadian Coal Corp. announces the following:
Further to its announcement of April 27, 2007, Western is pleased to announce that Cambrian Mining plc has completed the acquisition of Falls Mountain Coal Inc. (“FMC”) from Pine Valley Mining Corp. in accordance with the Sale and Purchase Agreement dated April 26, 2007. In accordance with the terms of the Master Agreement dated April 26, 2007 made between Western and Cambrian, Western has paid to Cambrian a fee of C$250,000 for Cambrian’s costs associated with the Acquisition and the parties have entered into an Interim Management Services and Employee Supply Agreement under which Western will provide certain services in respect of evaluating and maintaining FMC’s Willow Creek Coal Mine and the coal handling, processing and rail car loading facilities owned by FMC.
Under the terms of the Master Agreement, which were disclosed in the announcement of April 27, 2007, for a period of 180 days following completion of the Acquisition and subject to receipt of all requisite consents and approvals, Western will be entitled to acquire FMC from Cambrian. The combination of the FMC properties with Western’s properties would provide the opportunity to produce coal with product mix and marketing synergies.
In the interim, Western has the right to use the Willow Creek coal handling, processing and rail load-out facilities. In consideration of such use, Western will pay Cambrian a fee of C$2.50 per tonne of coal loaded through the FMC load out.
Western is uniquely positioned to take advantage of the FMC facilities which offer significant synergies to Western’s Brule mine. The Willow Creek processing facility can be used to process Brule’s low volatile PCI coal eliminating the need to construct a new plant of Western’s Burnt River property and the use of the load-out facility will enable Western to experience significant transport cost savings versus current operations.

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