Atrum Coal Enters JV Discussions To Develop Atrum's 100% Owned Panorama Anthracite Project With Kuro Coal

Perth, May 1, 2014 (ABN Newswire) - Atrum Coal NL ("Atrum" or the "Company") (ASX:ATU) (OTCMKTS:ATRCF) is pleased to announce that the Company has entered into joint venture discussions with Kuro Coal Limited (Kuro) to develop its 100% owned Panorama project (Panorama).

Kuro Coal is the spinout company of Atrum Coal and will be listed via IPO - ticker code KCO.

Commenting on the arrangement, Executive Director Mr Russell Moran said:

"A joint venture at Panorama is a win-win for Atrum and Kuro. The deal creates co-development and co-marketing opportunities that will benefit both companies."

Completion of a formal joint venture agreement is anticipated in the next week. Once signed, Atrum will be in a position to finalise its ATO demerger relief application and complete the IPO and ASX listing of Kuro. Further updates and a 'Notice of Meeting' will be dispatched to shareholders in the coming weeks.


PANORAMA ANTHRACITE PROJECT - JOINT VENTURE

Atrum and its wholly owned subsidiary Kuro Coal, are currently finalising a joint venture agreement for the development of Atrum's 100% owned Panorama anthracite project located approximately 20km west of Atrum's flagship Groundhog Anthracite Project (Groundhog), in British Columbia, Canada.

Panorama consists of two granted coal licences totalling 850 hectares of contiguous tenure that is the subject of the proposed joint venture.

The Panorama area is the only other known outcrop of the Groundhog Coalfield (where Atrum's Groundhog Project is located) and is believed to be prospective for high grade anthracite. Unlike the spin-out Atrum's Naskeena, Peace River and Bowron River assets, the Panorama coal licences are part of the greater Groundhog anthracite coal basin, and as such, the Atrum Board believes that a joint venture rather than spin-out of the Panorama asset is appropriate. This will enable Atrum to retain influence over the exploration and development of this potentially high grade and ultra-high grade anthracite asset.

The Atrum Board further believes that marketing of any products produced at Panorama should be a collaborative effort between Atrum and Kuro, to enable the companies to jointly maximise returns.

There are a number of benefits to the joint venture deal, for Atrum, Kuro and the local area:

- Atrum management can focus entirely on developing its flagship Groundhog project with no coal licence rentals or expenditure commitments for Panorama, Naskeena, Peace River or Bowron river licences;

- There are immediate drill-ready targets at Panorama, which were not planned for near or medium term exploration given the focus on Groundhog; the joint venture creates more potential upside for Atrum shareholders that would not have been possible had Panorama remained wholly-owned by Atrum.;

- Subject to exploration success, Kuro can share in the costs associated with future port, power and road upgrades from the Groundhog and Panorama sites through to Stewart, and potentially, rail line development. The addition of a second infrastructure user reduces financing risk for potential financiers.

- The potential for a single wash plant site for coal washing of both Atrum and Kuro anthracite could reduce wash plant costs and facilitate blending and co-marketing arrangements to maximise product pricing; and

- The joint venture translates to significantly more employment opportunities for local communities in the area.

The joint venture is subject to due diligence and agreement of final terms and documentation.


About Atrum Coal NL

Atrum Coal NL (ASX:ATU) is an emerging metallurgical coal explorer and developer.

The Company has a substantial coal position in British Columbia which, as a region boasts:

- Abundance of high quality PCI, coking and anthracite coals
- Well developed rail and port infrastructure with excess capacity
- Access to deep sea ports
- Competitive shipping distance to Asia
- Positive government stance on mining

The Company is building a quality portfolio of metallurgical coal assets suited to the Asian export market and the Board of Directors have a strong track record in identifying and developing world class coal assets in Australia and abroad.



Contact

Atrum Coal NL
T: +61-8-9388-3131
WWW: www.atrumcoal.com

Nathan Ryan, Investor Relations
M: +61-420-582-887
E: nathan@atrumcoal.com