Compliance Energy Corp CPYCF

RE: Princeton and production

[minor007]

The basin mine in Coalmont (Princeton) was shut down after the provincial government required Co2 sequestering of all coal fired power and 50 meg power plant was rehashed as a biofuel plant burning all beetle kill-CEC still has an offtake agreement with B.C. Hydro for that plant. Some of the thermal coal was shipped to cement plants in Kamloops and Vancouver at appr $50 to $60 per tonne landed at the customer. This coal is now selling for $120.00 per tonne on the export market. This mine has the 400,000 tonne plant ready to go with all the equipment still sitting there. I am sure CEC is relooking at this project as the mine has lots of thermal coal reserves and the local cement customers will have to pay the export price for coal or burn natural gas. The cost of mining and landing this coal at a port is probably not far from $70 per tonne. The project on Vancouver Island (Raven) is close to a decision one way or the other as the JV partners LG International and Itochu have until the end of May to make a decision-these are huge players on the International coal scene. If any of these things happen along with the fact CEC still holds 2.5 million Copper Mountain shares this could move ahead nicely. Keep your eye on the river card.