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Coalcorp Announces Implementation of Shareholder Rights Plan

Wednesday, November 21st, 2007

Coalcorp Mining Inc. announce the implementation of a shareholder rights plan. The rights plan is designed, to the extent possible, to ensure the fair treatment of Coalcorp’s shareholders in the event of a take-over bid and to provide Coalcorp’s board of directors and its shareholders with adequate time to evaluate any such take-over bid and, if appropriate, to seek out alternatives to maximize shareholder value.
The Toronto Stock Exchange has accepted notice of the rights plan subject to, among other conditions, confirmation of the plan by the shareholders of Coalcorp on or prior to May 19, 2008.
Coalcorp’s rights plan is similar to those adopted by other Canadian public companies and is not intended to prevent take-over bids. As long as a bid meets certain requirements intended to protect the interests of all shareholders, the provision s of the rights plan will not be invoked. A bid will be a permitted bid if it is made by way of take-over bid circular, remains open for a minimum of 60 days and otherwise complies with the permitted bid provisions of the rights plan. If a bid is not a permitted bid, then the rights plan will be invoked by the acquisition of 20% or more of the outstanding common shares of Coalcorp by any person (including persons related to or acting jointly and in concert with such person).
Under the provisions of the rights plan, one right was issued for each common share outstanding as of November 19, 2007. The rights will trade together with the common shares and will not be separable from the common shares or exercisable unless and until a take-over bid is made which is not a permitted bid. The rights will entitle shareholders, other than the person making the take-over bid (and any persons related to or acting jointly and in concert with such perso n), to purchase additional common shares at a 50% discount to the then prevailing market price.
For further information visit: www.coalcorp.ca

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