TORONTO, Aug. 29, 2011 /PRNewswire/ – Pacific Coal Resources Ltd. (TSXV: PAK)
announced today the release of its unaudited interim consolidated
financial results for the three and six months ended June 30, 2011,
together with its Management’s Discussion and Analysis. These documents
will be available on the Company’s website at www.pacificcoal.ca and at www.sedar.com.

Luis Carvajales, the Company’s Chief Executive Officer, commented, “The
second quarter results represent considerable progress made at our La
Divisa Cerro Largo mine as we completed the implementation of the
integrated mine plan. Cerro Largo’s contribution will have a positive
impact on our production and revenues for the balance of the year. We
are pleased to be on track to meet our production target of 1.8 million
tonnes this year.”

For the second quarter ended June 30, 2011, the Company reported
revenues of $35.5 million, due to the production and sales at the
Company’s La Caypa and La Divisa (“Cerro Largo”) mines, including sales
of coal purchased to third parties. During the second quarter of 2011,
the Company sold 376,332 tonnes of coal and produced 307,528 tonnes of
coal.

Selected Highlights

	Three months ending June 30, 2011	Six months ending June 30, 2011
Tonnes produced	307,528	669,300
Tonnes sold	376,332	757,200
(in US$ millions)
Revenue	35.5	72.4
EBITDA	(1.7)	1.9
Net income (loss)	(8.8)	(47.5)
Total assets	383.1
Long-term debt	9.0
Shareholders’ equity	271.8

Production from Cerro Largo, prior to the acquisition by the Company on
March 29, 2011, was 110,875 tonnes in the first quarter, with total
production at Cerro Largo for the first six months of 2011 at 125,730
tonnes of which 14,855 belong to the Company. During the second quarter
of 2011, the Cerro Largo operation was principally dedicated to mine
development, and completing the implementation of the integrated mine
plan. Please refer to the Company’s operational update press release
dated July 6, 2011 which is available on www.sedar.com and the Company’s website at www.pacificcoal.ca.

Capital Expenditures as at August 29, 2011

Capital expenditures for 2011 are expected to be $154.2 million,
including $5.2 million for exploration, $15.0 million for development,
$105 million for acquisitions (earmarked for Chianto and Masering, and
for the Baranquilla port), $14.0 million for infrastructure, and $15.0
million for equipment. The balance of the capital budget for the
remainder of 2011 totals $33.2 million and includes capital for $5.2
million for exploration, $5.0 million for development, $11.0 million
for infrastructure and $12.0 million for equipment.

Outlook

For the remainder of 2011, Pacific Coal is on course to sell
approximately 1.0 million tonnes from La Caypa and Cerro Largo combined
at a weighted average sales price of US$100 per tonne. The third and
fourth quarter will show a significant decrease in the strip ratio at
Cerro Largo, while during the second quarter, efforts were focused on
implementing the integrated mine plan, which involved a substantial
amount of waste removal.

Revised mine plans implemented at both La Caypa and Cerro Largo will
continue to improve efficiency, productivity and cash costs, while
maximizing quality specifications that will provide additional market
opportunities when available.

Pacific Coal continues to enhance shareholder value through the
exploration and development of its producing La Caypa and Cerro Largo
mines. The exploration program at La Tigra commenced during the second
quarter of 2011, with the objective of obtaining a National Instrument
43-101 resource estimate by the first quarter of 2012, and aiming to
start production in the third quarter of 2012. The Company expects to
produce 2.6 million to 2.9 million tonnes of thermal coal in 2012 from
combined operations.

Pacific Coal believes that with its solid asset base and leading
position in the Colombian coal market, it is well-positioned to benefit
from the resurgence of interest in the coal sector in Colombia,
particularly for the export seaborne market.

Management will hold a conference call on Tuesday, August 30, 2011 at
9:00 a.m. Eastern Time to discuss the second quarter results and
current operations. Analysts and interested investors are invited to
participate as follows:

Toronto & International: 1 (647) 427-7450

North America: 1 (888) 231-8191

Conference ID: 96066553

Playback of the conference call will be available starting two hours
after the completion of the call and up to 11:59 pm Eastern Time on
September 14, 2011. To access the playback, please call either
1-855-859-2056 (toll free) or 416-849-0833 with the above conference
ID.

About Pacific Coal Resources Ltd.

Pacific Coal Resources Ltd. is a Canadian-based mining company focused
on coal, coking coal, asphalt and asphaltite exploration, development
and production from prospective producing, development-stage and
exploration-stage properties in Colombia. The Company has acquired or
entered into agreements to acquire various interests in several
operating coal mines and projects, representing a substantive coal and
asphaltite exploration and production area throughout Colombia. Pacific
Coal is committed to implementing its exploration and development
strategy with a comprehensive environment, safety and community
program, meeting international standards of best practice.

Forward Looking Information:

This news release contains “forward-looking information”, which may
include, but is not limited to, statements with respect to the future
financial or operating performance of the Company and its projects.
Often, but not always, forward-looking statements can be identified by
the use of words such as “plans”, “expects”, “is expected”, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or
believes” or variations (including negative variations) of such words
and phrases, or state that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Pacific Coal to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Forward-looking statements
contained herein are made as of the date of this press release and
Pacific Coal disclaim, other than as required by law, any obligation to
update any forward-looking statements whether as a result of new
information, results, future events, circumstances, or if management’s
estimates or opinions should change, or otherwise. There can be no
assurance that forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, the reader is cautioned
not to place undue reliance on forward-looking statements.

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 news
release.

SOURCE Pacific Coal S.A.