Cline Mining Corporation T.CMK

Coal Pricing

[pastafagoli]

Cormark Report Extract

With respect to coal pricing, we expect Cline to receive a

modest discount of around 10% to the benchmark hard coking coal prices due to the high

ash and low vol nature of the material. A larger discount is expected in 2011 as the

company demonstrates its production capability and security of supply for customers.




The lower expected coal prices now may be a result of the 2nd sentence from above.  On a go forward basis a 10% discount should do so about high 2s from current pricing.

Cormark also states:

With all permits in place and coal marketing underway, Cline expects to commence

commercial ramp up during Q2/11.


Looks like a lot of permits are not in place ?? !!


Again, the blue seam permit comment for the lower production targets does not make sense - there is plently of coal in Allen and Maxwell.