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Canada Coal Provides Corporate Update

December 17th, 2013, Vancouver, BC, Canada – Canada Coal Inc. (the “Company” or “Canada Coal”), (TSX-V: CCK) is pleased to provide a corporate update on its Arctic coal properties.

Community consultation meetings between Canada Coal and the Hamlet of Grise Fiord (the “Community”) occurred in July 2013 and November 2013. The July consultation focused on presenting the planned Phase 2 exploration program to the community, and gathering feedback to resolve concerns relating to water management, wildlife management, and preservation of heritage resources. Although the meeting was well attended for the small Hamlet, many of the local hunters were absent due to seasonal work. The Company had a follow-up session in November 2013. Representatives from Aboriginal Affairs and Northern Development Canada and Qikiqtani Inuit Association were also in attendance for the meeting. During the November meeting it was agreed that more consultation with the community was required in order to adequately address all of their concerns.

The Company has agreed to delay its intended exploration program on Ellesmere Island for a 12 month period so that a joint working group between the Company, the Community and certain regulatory bodies can be established to explore ways to progress the project, whilst addressing the concerns of all stakeholders.  The working group will meet regularly over the next 12 month period. Accordingly, the Company has withdrawn its project application.  Braam Jonker, President and CEO of Canada Coal commented that, “This is a very positive development between the Company and the Community and we are looking forward to working with all stakeholders to move this project forward.”

During 2013, the Company was granted relief on some of its coal exploration licences within the Fosheim Peninsula region on Ellesmere Island. An expiry date extension period of one year on existing licences was granted to the Company to allow time to conduct further consultation with the surrounding communities and other interested parties. The Company will be seeking additional extensions to accommodate the twelve month working group timeframe.

The Company also announces that licences numbered 177 through 196, inclusive, have been relinquished in order to focus operations on the Company’s main project area, Fosheim Peninsula. The lapsed licences were all located on Axel Heiberg Island, outside of the Fosheim Peninsula Project. Licence areas 109-115, the majority of which are located on Ellesmere Island, also expired during 2013 but the Company has reapplied for these areas.

The company currently holds 59 active and 9 pending coal exploration licence blocks totalling 1,769,539 acres primarily situated within Canada Coal’s Fosheim Peninsula Project.

Multiple high quality thermal coal deposits were discovered on the Company’s arctic coal license areas located in Nunavut through its 2012 exploration program.  Well over 100 coal seams on the Company’s Fosheim Peninsula project area were assessed, resulting in the identification of extensive zones of low-sulphur, low-ash, subbituminous, thermal coal.

Historic Coal Data Overview: http://www.canadacoal.com/index.php?page=historic_data

In compliance with National Instrument 43-101, Standards of Disclosure for Mineral Projects, Susan O’Donnell, B.Sc., P.Geol., of DMT Geosciences Ltd., is the Independent Qualified Person responsible for the accuracy of this news release.

About Canada Coal

Canada Coal is a publically listed company focused on coal exploration and development in Nunavut.  Through its two wholly-owned subsidiaries, Canada Sovereign Coal Corp. and 5200 Nunavut Ltd., Canada Coal holds 59 active and 9 pending coal exploration licence blocks totalling 1,769,539 acres located primarily on Ellesmere Island in Nunavut (the “Nunavut Coal Property”).  Canada Coal commissioned a National Instrument 43-101 compliant technical report in respect to the Nunavut Coal Property, dated September 30, 2011 entitled “The Nunavut Coal Project-Ellesmere Island and Axel Heiberg Island, Nunavut, Canada” as well as an “Updated Independent Technical Report,” dated November 26th, 2012, prepared by Keith McCandlish, P. Geol., P. Geo., and Susan O’Donnell, P. Geol., of DMT Geosciences Ltd. (formerly Associated Geosciences Ltd.)., Calgary, Alberta, Canada, a copy of each report is available on SEDAR at www.sedar.com.

On behalf of the Board of Directors

“Braam Jonker”

President and Chief Executive Officer

Phone: 1-604-638-0971

Website: www.canadacoal.com

E-mail:  [email protected]

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