Atrum Coal NL Completion of $8 Million Placement

Perth, Australia (ABN Newswire) - Atrum Coal NL ((ASX:ATU) (OTCMKTS:ATRCF) ("Atrum" or the "Company") is pleased to announce that it has completed a placement to institutional and existing sophisticated investors to supplement existing facilities.

Executive Chairman, Mr James Chisholm commented on the appointment:

"2014 has been a solid year of exploration and development at Groundhog. We have a robust SPFS for Groundhog North in hand and look forward to capitalising on the strong interest shown by prospective consumers in our high grade and ultra-high grade anthracite. Given we have completed the bulk of our site works for the time being, Atrum is now well funded to finalise a finance package for Groundhog North."


PLACEMENT

The Company has completed a placement of $8 million to existing sophisticated and institutional investors through the issue of ordinary shares at a price $1.20 per share which represents only 3.8% of the fully diluted capital structure of the Company. The funds raised will supplement the Company's existing facilities and allow the Company to complete a sell-down process to fund Groundhog North in a timely manner. The placement will occur under the Company's existing placement capacity.

The existing facilities and new funds will allow the company to progress the various regulatory permits required to develop an underground anthracite mine, and allow the Company to oversee a multi-track process to secure the funds required for development of GHN on a staged basis, with funds drawn down as permitting milestones are achieved.

Over the coming months, the Company will focus on progressing permitting, running the multi-track funding process for GHN, completing a concept study for an additional mine, geological modelling and a resource upgrade. Given that the bulk of the site exploration activities have been completed, operating costs have dropped to less than $2 million per quarter.

The GHN multi-track funding process has been designed to maintain competitive tension between high grade anthracite end-users, global private equity groups and government-owned enterprises that have shown strong interest in participating in the development of the proposed mine. A global investment bank will be appointed in due course to assist the Company with this process.

GHN, the first mine on the 800sqkm Groundhog Anthracite tenure demonstrates a A$1.7 billion posttax NPV10 and 42% post-tax IRR, as shown in the recently released Supplementary PFS (SPFS).

Given the size of the resource and the market demand for anthracite products, the Company has begun work on a concept study for another



About Atrum Coal NL:

Atrum Coal NL (ASX:ATU) (OTCMKTS:ATRCF) 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.atrumcoal.com