Colonial Coal International Corp. Announces Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 17, 2017) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Colonial Coal International Corp. (TSX VENTURE:CAD) (the "Corporation" or "Colonial Coal") is pleased to announce a non-brokered private placement of up to 50,000,000 units of the Corporation (each a "Unit"), at a subscription price of $0.15 per Unit, for gross proceeds of up to $7,500,000 (the "Private Placement").

Each Unit will be comprised of one common share in the capital of the Corporation and one-half of a transferable common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder thereof to purchase one additional common share of the Corporation at an exercise price of $0.30 per common share for a period of three years from the date of issue.

Finder's fees are expected to be payable in connection with the completion of the Private Placement in accordance with TSX Venture Exchange (the "Exchange") policies. The Corporation intends to use the net proceeds of the Private Placement to fund its 2017 exploration program and for general corporate and working capital purposes.

Closing of the Private Placement is subject to a number of conditions, including receipt of the approval of the Exchange. The Private Placement is expected to close by February 2, 2017.

All securities issued in connection with the Private Placement will be subject to a statutory hold period of four months plus one day from the date of issuance of the securities in accordance with applicable Canadian securities legislation. In addition, the securities referred to in this news release have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This news release shall not constitute an offer to sell or the solicitation or an offer to buy nor shall there be any sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful. The common shares and Warrants to be issued by the Corporation will be "restricted securities" as defined under Rule 144(a)(3) of the U.S. Securities Act.