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Summary of Reserves and Resources
---------------------------------------------------------------------------- Reserves (Mt) Resources (Mt)----------------------------------------------------------------------------Mine Proved Probable Measured Indicated Total----------------------------------------------------------------------------Verticalnaya 5.6 21.3 57.3 33.6 90.9----------------------------------------------------------------------------Menzhinsky seams 4.6 2.2 6.3 34.5 40.8----------------------------------------------------------------------------Menzhinsky waste tip - 0.6 - 0.7 0.7----------------------------------------------------------------------------Total 10.2 24.1 63.6 68.8 132.4----------------------------------------------------------------------------JORC Reserves and Resources Statement as at 1 December 2012
John Byrne, Chairman of EastCoal Inc. said: "Coal production from the Donbass basin in eastern Ukraine historically produced approximately 70% of the Russian Empire's coal rising to 200mtpa in the 1970s. Since this period the region has seen a decline in investment to the extent that Ukraine has had to import up to 11mt of coal per annum. In 2009 EastCoal recognized the opportunity created by privatisation and restructuring initiatives from the Ukrainian Government resulting in the Company becoming the first external player in a region of significant coal reserves. The Company has acquired and is developing two near term producing projects to meet the growing domestic and export demands for both the power and steel industries."
Abraham Jonker, Director and President of EastCoal Inc., commented: "I am pleased to announce commencement of trading of the Company's shares on AIM. This decision was largely driven by increased investor interest from the United Kingdom. I am confident that the experienced management team that we have assembled, combined with the highly attractive project fundamentals would render our projects an extremely exciting opportunity for investors."
Placing and Admission StatisticsPlacing Price 12.21 Pence CAD$ 0.194(1)Number of existing Common Shares in issue Prior to the Placing and concurrent Salida loan conversion and settlement(2) 247,763,839Number of Placing shares being issued Pursuant to the Placing 67,478,501Number of common shares being issued concurrent to the Placing in accordance with the shares for debt 10,326,577 settlementNumber of Common Shares in issue following Placing and admission 325,568,917Percentage of the enlarged issued share capital being Placed and issued pursuant to the shares for debt settlement(2) 23.90 Per centEstimated Gross Proceeds of the Placing and concurrent Salida loan conversion and settlement GBP 9.5 million CAD$15 million(3)Estimated net Proceeds of the Placing receivable by the Company and concurrent Salida loan conversion and settlement GBP 7.7 million CAD$12.2 millionMarket Capitalisation immediately following completion of the Placing and concurrent Salida loan conversion and settlement GBP 39.7 million CAD$63.0 million(3)AIM 'ticker' ECXISIN CA2761651074(1) Applying the exchange rate of GBP 1.00 : CAD $1.5862 stated by Bank ofCanada at www.bankofcanada.ca as at noon on 10 December 2012 in Canada.(2) Assuming there are no changes to the issued share capital of the Companybetween the date of this document and the date of admission becomingeffective.(3) Based on the Company's share price of CAD$0.215 as at 10 December 2012and assuming there are no changes to the issued share capital of the Companybetween the date of this document and the date of admission becomingeffective.
