Colonial Coal International Corp. Announces Increased Interest in Joint Venture Relating to Acquisition and Development of Watson Island Site

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 22, 2013) - Colonial Coal International Corp. (TSX VENTURE:CAD) (the "Company" or "Colonial" - David Austin, President and CEO), is pleased to announce that the Company has acquired its industry participant joint venture partner's (the "Participant") interest under the memorandum of understanding ("MOU") with the Lax Kw'alaams Band and Metlakatla First Nations (collectively, the "Coast Tsimshian Nation") relating to the formation of a joint venture for the potential acquisition of the Watson Island site (the "Watson Island Land") pursuant to an exclusivity agreement (the "Exclusivity Agreement") between the Coast Tsimshian Nation and the City of Prince Rupert for the purchase of the Watson Island Land. The acquisition brings the Company's ownership interest in the joint venture to 90%. The Company looks forward to the joint venture taking over the existing operations on Watson Island which is subject to completion in accordance with definitive documentation currently being negotiated.

As a result of the acquisition, the Company is now solely responsible for the obligations of the Coast Tsimshian Nation to compensate the City of Price Rupert for land expenses from December, 2012 onwards in accordance with the terms of the Exclusivity Agreement. It is anticipated that such payments will be made for the term of the Watson Island Land feasibility investigation although, under the MOU, the Company retains the right, in its sole discretion, to terminate the payments at any time.

The MOU is non-binding except in certain limited respects but sets out the general terms and parameters regarding the potential financing, development and use of the Watson Island Land and certain terms and conditions that are proposed to be included in definitive agreements yet to be completed (the "Definitive Agreements"). Execution of the Definitive Agreements is subject to a number of conditions for the benefit of the Coast Tsimshian Nation and the Company and common to agreements of this nature, including, among other things, further due diligence and management approval.

About Colonial Coal International Corp.

Colonial is a publicly traded pure-play coking coal company in British Columbia. The northeast Coal Block of British Columbia, within which our Company's projects are located, hosts a number of proven deposits and has been the subject of M&A activities by Xstrata, Walter Energy, Anglo and others.

Additional information can be found on the Company's website www.ccoal.ca or by viewing the Company's filings at www.sedar.com.

Forward-Looking Information

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