Canada Coal investor DiCapo acquires 2.5 million shares

Mr. Pasquale DiCapo, investor, reports

PASQUALE DICAPO ACQUIRES SECURITIES OF CANADA COAL INC.

Pasquale DiCapo of 130 King St. W, Suite 2210, Toronto, Ont., M5X 1E4, on Feb. 29, 2012, indirectly acquired beneficial ownership of 2.5 million common shares of Canada Coal Inc. and 2.5 million common share purchase warrants of Canada Coal (each warrant entitling the holder thereof to acquire one common share of Canada Coal). These securities represent approximately 5.75 per cent of the current issued and outstanding common shares of Canada Coal (or approximately 10.88 per cent on a partially diluted basis, assuming exercise of the warrants only).

In addition, on Feb. 29, 2012, a joint actor of Mr. DiCapo acquired ownership and control of 1,720,400 broker warrants of Canada Coal (each broker warrant entitling the holder thereof to acquire one common share), which represent approximately 3.81 per cent on a partially diluted basis, assuming exercise of the broker warrants only; and when taken together with the securities acquired by Mr. DiCapo, represent approximately 5.75 per cent of the current issued and outstanding common shares (or approximately 14.1 per cent on a partially diluted basis, assuming exercise of the warrants and broker warrants only).

Mr. DiCapo and his joint actor acquired the common shares, warrants and broker warrants pursuant to a merger between Canada Coal and Mercury Capital Ltd. that occurred on Feb. 23, 2012.

These transactions were made for investment purposes and Mr. DiCapo and his joint actor may from time to time acquire additional securities of Canada Coal, dispose of some or all of the existing or additional securities of Canada Coal they hold or will hold, or may continue to hold their current positions depending on market conditions or any other relevant factor.