Liberty Coal broadens focus to include production, coal types commanding higher market prices

Source: Liberty Coal Energy

Liberty Coal Energy (OTCBB:LBTG) (the Company, or Liberty Coal) is pleased to announce that it has broadened its corporate strategy to better position the company for enhanced growth and corporate development. 

Development of its existing Powder River Projects - Ranchester and South Powder River is underway.
The low sulfur Powder River coals market value remains in the $15 +/- per ton range due to lower BTU/ heat values. Regardless of the project value, exposure to only the lower value coal markets carries risks that can be mitigated by broadening the focus in the coal industry . 

For the most up to date and in-depth information on the Coal Generation market visit PennEnergy's comprehensive Research area to access industry focused Reports.

After review of various options, Liberty’s Board of Directors recommended the following second prong strategy as vital to cover the breadth of the coal industry products and opportunities. 

Liberty should seek more immediate revenue from production-ready or undeveloped proven reserves, and coal types commanding higher market prices. For example, anthracite thermal coals of 12,000 to 14,000 BTU values are marketed at $40 to $60/ ton and metallurgical coals sell at prices beyond $150/ton. 

Based on the Board’s recommendations, the current plan of Liberty’s program is summarized in the following: 

Existing Projects 

The Ranchester Project: The property has no proven reserves - is scheduled for drilling in September/October of 2011. Drill and equipment access has been secured, and will not require building of new roads or significant reclamation costs. A drilling contractor has been secured and will be announced when negotiations are complete. Laboratory analysis of drill samples has been arranged and the drill permit application is under review. 

The South Powder River project: The property has proven resources, deeper than existing Powder River Coal production, but Liberty believes it can be mined underground at a good economic return. A pro forma economic and operational plan is in process to determine the appropriate next step on this cutting edge project. 

Future Projects 

Advanced Projects Under Review:
Liberty is targeting medium tier properties with adequate access to markets, transportation, and existing production. Small to medium sized projects, distal to the major production company holdings, are ideal for small to medium producers. These are Liberty’s prime targets. 

Liberty is currently in discussions and due diligence on three North American coal projects; two higher BTU value thermal coal deposits: one in current production, one with proven resources, but not developed to production, and one coal deposit with proven resources, capable of producing metallurgical coal, adjacent expansion possibilities, and engineering reports in place. 

Advanced projects are vital to the immediate future of Liberty Coal Energy 

Liberty’s immediate plan and goal is to bring one or more of these to the contract phase within one month, if due diligence validates the opportunity. 

Financing Completed in May 2011 

Liberty completed a financing for $500,000 US in May 2011. Liberty sold 666,667 shares of its common stock in a private placement to one investor in exchange for $500,000, or $0.75 per share. 

In connection with the sale of the Shares, the investor received warrants to purchase 666,667 shares of the Company’s common stock at a purchase price of $0.82 per share. The warrants expire in 24 months.


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