Wednesday, February 8, 2012

Colombia Energy Resources, Inc. (CERX) Acquires Herrera Metallurgical Coal Mining Concession through Subsidiary

Colombia Energy Resources, Inc. announced today that it has acquired the Herrera metallurgical coal mining concession. CERX, through its wholly-owned Colombian subsidiary, Colombia Clean Power SAS (“CCP”), completed the acquisition on February 3, 2012, purchasing the concession from Dairo Ruben Herrera Perez and Ariel Salcedo Leal. The 42-acre purchased concession contains metallurgical coal resources similar in quality to the company’s Ruku Mining Complex.

The concession’s permit, FI7-081, entered the construction or preoperative phase on February 3, 2012. Compensation includes certain payments made at the signing of the agreement and will be made upon governmental approval of the concession’s transfer to CCP, which is expected to occur by May 30, 2012.

Carlos Soto, President of CCP, remarked, “The acquisition of this concession adjacent to our Ruku Mining Complex, which began production in December 2011 and is now producing approximately 1,800 tpm, will result in more efficient access to Ruku’s coal resources and ultimately, lower operating costs and improved safety.”

The company also announced that CCP entered into an operations agreement with Americana de Minerales de Exploracion S.A.S., the option holder of the “Boavita” concession FFB-081. This agreement allows for the immediate start of mining operations on the Boavita property once INGEOMINAS, the Colombian state mining authority, approves the recently submitted mining plan. This approval is expected by February 29, 2012. Management believes this will likely result in increased coal production for CCP in 2012.

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