CanAm Coal Corp COECF

Acquires Alberta Frac Sand Property

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CanAm Closes Transaction to Acquire a Western Canadian Frac Sand Property

Calgary, Alberta--(Newsfile Corp. - December 15, 2014) - Further to a press release dated October 29, 2014, CanAm Coal Corp. (TSXV: COE) ("CanAm" or the "Company") today announced it has completed the acquisition of a 100% interest in an Alberta Metallic and Industrial Minerals Permit covering approximately 1,200 acres (567 ha) of land containing high quality silica sand (or Frac Sand) in Central Alberta (the "Property" or the "Transaction").

The aggregate purchase price of the acquisition is $1.5 million which will be settled by $215,000 in cash and the issuance of 25.7 million common shares of the Company at a deemed price of $0.05 per common share. At closing of the Transaction, and including the portion of the purchase price that was paid at signing of the binding letter of intent, $165,000 in cash was paid and 5,940,000 common shares were issued. The remaining portion of the purchase price, comprised of 19,760,000 common shares of the Company, were escrowed and will vest in accordance with the achievement of the following milestones and/or performance criteria: 4,940,000 common shares upon completion of a NI 43-101 resource report, 6,175,000 common shares upon completion of a Preliminary Economic Assessment and 8,645,000 common shares upon receipt of final permits. A final cash payment of $50,000 is due on February 1, 2015.

The Transaction has received conditional approval by the TSX Venture Exchange.

With the closing of this transaction, the Company has now secured a property that will allow it to diversify and broaden its energy portfolio into the growing frac sand market.

The Property acquired by the Company has a number of compelling attributes:

• Based on an historical resource calculation, the property may contain at least 10 million cubic yards of sand. This estimate however is non NI 43-101 compliant and therefore cannot, and should not be relied upon.

• Initial tests, performed by Loring Laboratories (Alberta) Ltd. and Global Energy Laboratories, indicated that the sand meets the ISO/API criteria for frac sand which would make this a highly desirable product for the fracking industry. The Company has initiated further testing and will release additional results as soon as they are available.

• The Property’s strategic location in Central Alberta provides it with a significant logistics cost advantage due to its relative proximity to major Western Canadian shale plays such as the Duvernay, Montney and Horn River. Industry experts estimate that logistics (transportation and handling/transloading) can account for 60%+ of the delivered cost to the end consumer and such costs could be as high as $150/ton for sand imported from the US. Currently, the majority of the sand used in the Canadian market is imported from the US and can travel up to 3,000 km from the frac sand producing States of Wisconsin, Nebraska and Minnesota.

The Company will now aggressively move forward with an exploration and development program with the objective of issuing a NI 43-101 resource report in Q2 of 2015.

Jos De Smedt, CEO of CanAm, commented: "We are excited about completing this transaction as we can now strategically move forward towards exploration, development and permitting of the Property. Our objective is to put our frac sand property in production within 2 years and secure ourselves an additional stream of revenue and cash flow".

For Further Information:

CanAm Corporate Office:
Jos De Smedt, CEO
Tel: [phone]
Toll Free: 1.877.262.5888
Email: [e-mail]