EastCoal Inc.-wash plant construction on schedule

VANCOUVER, BRITISH COLUMBIA–(Marketwire – July 9, 2012) – EastCoal Inc. (TSX VENTURE:ECX) (the "Company" or "EastCoal") is pleased to announce that the construction of the new wash plant at the Menzhinsky Coal Mine in Ukraine ("Menzhinsky Mine") is proceeding on schedule with first coal expected to be processed in the current quarter. The foundations for the plant were completed in June and a team of engineers and technicians from Keats Engineering in the UK are on site and assembling the plant, which was built in the UK.

The plant is designed to process 400 tonnes of material an hour and is anticipated to produce 91,000 tonnes of saleable coal in 2012. It is expected to commence generating positive cash flows in the current quarter.

The Chairman of EastCoal, Mr. John Byrne, commented:

"We are very pleased with the progress of the Menzhinsky wash plant and the planned cash generated from this operation will assist in financing the Company's plans in the region."

The Company is filing the Amended Pre-Feasibility Study Report on the Verticalnaya Mine, Lugansk Oblast, Ukraine dated March 2011 as amended June 2012 on SEDAR at www.sedar.com.

By Order of the Board,

John Byrne, Chairman

About EastCoal Inc.

EastCoal Inc. is currently producing coking coal from its 100% owned Menzhinsky mine and developing its 100% owned Verticalnaya anthracite mine.

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking information. These and all subsequent written and oral forward-looking information are based on estimates and opinions on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, EastCoal assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change. Completion of the transaction described herein will be subject to numerous conditions, including the negotiation and execution of definitive agreements. There can be no assurance that the transaction will be completed as proposed or at all.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information


EastCoal Inc.
Abraham Jonker
(604) 681-8069

EastCoal Inc.
George Lawton
(604) 681-8069
(604) 685-4675  (FAX)