CanAm Announces 6 Million Tons of Coal Reserves at Birmingham Coal & Coke- Additional Disclosure

CanAm Coal Corp. (TSX VENTURE:COE) ("CanAm" or the "Company") is providing
additional disclosure to the news release issued on June 9, 2011 regarding the 6
million tons of coal reserves at Birmingham Coal & Coke ("BCC"). This additional
disclosure addresses further details around the determination and the economics
of the reserve. 


Reserve Determination and Calculation

A general definition of coal resources and reserves states that: "A coal
resource is coal contained in seams, occurring within specified limits of
thickness, and depth from surface. A resource tonnage is always calculated on an
'in place' basis, that is, mining or other recovery factors are not applied. A
reserve is that portion of the resource which is anticipated to be mineable
under prevailing technological and economic conditions, based on the completion
of appropriate studies and which has no legal impediments to mining." 


In the technical report, coal was classified based on its assurance of
existence; i.e. the degree of confidence in the quantity estimates and its
demonstrated economic and recoverable viability and, in this context, Mr. Nikols
concluded that all coal, that was the subject of this study, met the criteria of
Proven Reserves and no other categories of coal are being reported. In place of
a feasibility or other forecasting study type, all economic and technical
considerations in the study are based on the actual results of ongoing mining
and product sales. Considerations, such as: thickness of overburden, seam
thickness, recoverability percentage, average grade, all costs and incomes, are
and have been evaluated in light of recent mine and corporate performance.


Measures or factors used in the calculation of reserves.



--  Thickness of coal - inches 
--  Thickness of overburden or depth to coal - feet 
--  Stripping Ratio (overburden tons : tons of coal) 
--  Area measures - acres 
--  Density - pounds/cubic foot 
--  Coal Quality ASTM (chemical)- percent 
--  Heat Value ASTM in British Thermal units/ pound - BTU/lb 



The standard in place coal tonnage calculation method from Pfleider is:

1. Estimated raw tons per acre foot = 43560 sq.ft/acre x1 ft x lb per cu ft/2000
lb or 1 short ton

2. Estimated raw tons per acre = Estimated raw tons per acre foot x measured
seam height

3. Estimated loss or recovery factor in percentage

As to the recovery factor, or the percentage of total tons of coal estimated to
be recoverable from a given area in relation to the total tonnage estimated to
be in the reserve base in the ground, Mr. Nikols used a factor of 85%. Since BCC
and its three properties are ongoing, open cast mining operations, it is clear
that the recovery factors, most appropriate for a given seam, at a given
operation are established over time through experience. Eighty-five percent
(85%), or the value established, is also a common value in other Alabama mining
operations where the coal seams are thin to moderately thick and have similar
geological conditions. Also, depending on a number of factors, 85% has been
found to be conservative at all three properties and values closer to 90% are
achieved with regularity.


Data Review

The technical study included, but was not limited to, a close examination of all
assay and drilling data in BCC's files. Tabular data for each mine property,
such as drill hole locations and results, assays, etc. were assembled and
independently reviewed by Mr. Nikols and all such data is provided in the
technical report. Mr. Nikols also evaluated the relevant data submitted by BCC
regarding coal thickness and quality which included data from 269 drill holes;
67, 101, and 101 at the Bear Creek Mine, the Gooden Creek Mine and the Old Union
Mine respectively. The core samples obtained and analyzed are consistent with
historical data and coal quality is representative of the proposed mine areas.
In Nikols' opinion the sample collection, preparation and testing are reliable
and representative of the Bear Creek, Black Creek and Jefferson seams of coal
and are sufficient to define the coal reserves of BCC.


Economics

As part of the technical study, an economic analysis was performed for the
period 2011 through 2020 which considered coal prices and unit operating costs
consistent with historical performance and with typical coal price and unit cost
inflation factors incorporated into the model. For 2011, production is
forecasted at 480,000 tons (as compared to a three year historical average of
460,000 tons), coal sales pricing at US$87/ton, production cost of US$55/ton and
EBITDA of US$17/ton. Capital cost projections over the period include US$1 to
US$2 million each year for equipment rebuilds and refurbishment and US$2 million
each year for capital equipment replacement. On this basis, the technical report
shows a pretax net present value (NPV) of US$39 million at a 12% per annum
discount rate.


Summary of Proven Reserves

A summary of the Proven Reserves of the 3 coal mining properties combined is
shown in the table below. 




                         Summary of Proven Reserves                         
----------------------------------------------------------------------------
               Bear Creek       Old Union     Gooden Creek        Total     
----------------------------------------------------------------------------
             Acres      Tons Acres      Tons Acres      Tons Acres      Tons
----------------------------------------------------------------------------
Permitted                                                                   
 Active                                                                     
 Mining        155   310,000   406   720,000   178   445,000   739 1,475,000
Permit                                                                      
 Pending       784 1,347,750   729 1,275,000   726 1,893,800  2239 4,516,550
                                                                            
----------------------------------------------------------------------------
       Total   939 1,657,750  1135 1,995,000   904 2,338,800  2978 5,991,550
----------------------------------------------------------------------------



Notes: 1) Permitted Active Mining refers to that coal where all environmental
and operating permits are in place and active mining and reclamation was
proceeding as of January 1, 2011. 2) Permit Pending refers to that coal where
all mining permits are not yet granted (in some cases, environmental permits
have been granted).


The 6 million tons of reserves at BCC are low sulfur, high-volatile A Bituminous
and in some instances exhibit near metallurgical coal characteristics. These
reserves are extractable through open pit mining methods with no washing
required. A recovery factor of 85% has been used in the calculation of the
reserves which is standard with these coal seams in Alabama and conservative by
BCC's historical recovery rates. Heating value for these coals ranges from
11,000 Btu/lb. to 13,000 Btu/lb. Sulfur percent, as a constituent of the ash,
ranges from 0.7% to 1.6%, which makes for compliance sulfur blended coal
products. The percent of ash in the coal ranges from 6.0% to 16.0% depending on
the seam being mined at the time of production. 


Dennis Nikols, P. Geo., a qualified person, has reviewed and verified the
technical mining information contained in this news release.


About CanAm Coal Corp. 

CanAm is a coal producing and development company focused on growth through the
acquisition, exploration and development of coal resources and resource-related
technologies. CanAm's main activities and assets include its four operating coal
mines in Alabama, the exclusive rights to a proprietary Coal to Liquids
technology which converts coal into liquid fuels (such as oil, jet fuel) at an
economical cost with zero airborne emissions and the Buick Coal Project which
holds significant coal resources, 188 million tons of indicated and 103 million
tons of inferred coal resources, in Colorado, USA (see the technical report
entitled "Limon Lignite Project, Elbert County, Colorado, USA," dated October
26, 2007 and filed on SEDAR on November 2, 2007). Other coal and related
opportunities continue to be evaluated on an ongoing basis.


This news release may contain certain forward-looking information. All
statements included herein, other than statements of historical fact, is
forward-looking information and such information involves various risks and
uncertainties. There can be no assurance that such information will prove to be
accurate, and actual results and future events could differ materially from
those anticipated in such information. A description of assumptions used to
develop such forward-looking information and a description of risk factors that
may cause actual results to differ materially from forward-looking information
can be found in the Company's disclosure documents on the SEDAR website at
www.sedar.com. The Company does not undertake to update any forward-looking
information except in accordance with applicable securities laws.
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