Creating a Larger, Stronger and More Diversified Coal Mining Company

On May 20, 2009, Western Coal Corp. and Cambrian Mining plc announced an agreement to merge their operations to create a mid-tier coal mining company.  The combined operations of Western, a Canadian producer of high quality metallurgical coal, and Cambrian, a UK based diversified mining company operating in three continents, will result in a larger, stronger and more diversified company. The amalgamation of these two companies is an excellent strategic fit as Cambrian, with a 34% stake in Western’s assets and owners of $29 million of Western’s debt, has been instrumental in developing Western’s mines and bringing them into operation.  The combined company will be able to achieve much more than each company could on its own, resulting in greater shareholder value.

 The key benefits of the acquisition are:

Significant increase in coal reserves and resource base

• 39% increase in coal reserves to approximately 184 million tonnes
• 50% increase in resource base to approximately 355 million tonnes

Current coal production capacity to double to 3.5 million t/a

• Potential for future coal production to over 10 million t/a

Expanded product mix

• Addition of thermal coal while benefitting from the upside potential of the growing metallurgical coal market

Greater geographic diversification

• Larger presence in Europe and a new presence in the U.S.

Stronger operating and financial platform

• Opportunity for organic growth and future consolidation in the U.S. and Western Canada

Operating synergies

• Reduced costs and improved operating efficiencies

Greater trading liquidity

• The merger will release 72.1 million shares currently owned by Cambrian, increasing the public float by 55%. A more widely held company will improve trading liquidity.

For more information on Cambrian Mining plc, please visit www.cambrianmining.com