ECX Eastcoal

EastCoal Inc. (TSX VENTURE:ECX)(AIM:ECX) ("EastCoal" or the "Company") is
pleased to announce that, at the end of February, it restarted its wash plant at
the Menzhinsky mine following the completion of engineering improvements and
that it expects wash plant production to ramp up over the next few weeks. 


The geological challenges experienced at the Menzhinsky underground mine,
announced on 8 February 2013, continued into March and, as a result, the Board
has ordered the immediate discontinuation of the current longwall, two months
earlier than originally planned. The Company will continue with the development
of the Central longwall, which should be ready for production on 1 May 2013, in
line with the expected timing set out in the Company's recent AIM Admission
document. The Directors believe that the Central longwall should have the
capacity to produce 7,000 tonnes of coal per month. 


The Company will also reduce headcount at its Ukrainian operations by
approximately 400 people, principally to improve operational efficiency. The
Company currently employs approximately 1,200 employees across its Menzhinsky
and Verticalnaya operations.


The Company is pleased to announce that on 12 March 2013 it reached an agreement
with Aponet Enterprises Limited to amend the CDN$0.65 conversion price of its
US$4 million debenture issued as part of the acquisition of Inter Invest, the
owner of the Menzhinsky mine, to CDN$0.23, and to convert the debenture into
17,391,305 common shares of EastCoal Inc. effective 12 March 2013. The Company
has applied to the TSX-V for approval for the conversion which it expects to
receive shortly (following which the debenture will be converted). The debenture
had an interest rate of 2% over the 3-month LIBOR rate per annum compound
quarterly and a maturity date of 31 May 2016. Application will be made for these
new common shares (which rank equally with the existing common shares in the
Company) to be admitted to trading on AIM and the TSX-V and, subject to receipt
of the said approval, it is expected that admission will occur on 18 March 2013.


Following admission of the new common shares, the Company will have 343,048,493
common shares in issue, which will represent the total number of voting rights
in the Company. This figure should be used by shareholders as the denominator
for the calculations by which they will determine if they are required to notify
their interest in, or a change to their interest in, the Company under the FSA's
Disclosure and Transparency Rules.


As a consequence of the unexpected shut down of the wash plant at the Menzhinsky
mine and the geological problems encountered at the Menzhinsky underground mine
in January and February, very little revenue was received by the Company during
that period. As a result, the Company's short term working capital requirements
need to be resolved to allow continued implementation of its current operational
strategy. The Directors, who believe that these challenges are temporary and
that the long term value of the Company's assets remains intact, are working on
an appropriate financial solution. 


John Byrne, executive chairman commented. "We have moved swiftly to address the
challenges at the Menzhinsky mine and while production over the next two months
will still be impacted, the Board is confident that the steps that we are taking
should resolve these issues. The reduction in staff is regrettable but reflects
both current operational requirements and our continuing efficiency
improvements. 


The restructuring of the Aponet debt significantly strengthens EastCoal's
balance sheet and the conversion price agreed, relative to the December 2012
issue price and the current market price, emphasises Aponet's continued belief
in the value creation potential of EastCoal's asset portfolio."


About EastCoal Inc.

EastCoal Inc. is currently producing coking coal from the Menzhinsky mine, which
is operated by its 100% owned subsidiary Inter-Invest Coal, and developing the
Verticalnaya anthracite mine, which is operated by its 100% owned subsidiary
East Coal Company. 


This press release contains projections and forward-looking information that
involve various risks and uncertainties regarding future events. Such
forward-looking information can include without limitation statements based on
current expectations involving a number of risks and uncertainties and are not
guarantees of future performance. There are numerous risks and uncertainties
that could cause actual results to differ materially from those expressed in the
forward-looking information. These and all subsequent written and oral
forward-looking information are based on estimates and opinions on the dates
they are made and are expressly qualified in their entirety by this notice.
Except as required by law, EastCoal assumes no obligation to update
forward-looking information should circumstances or management's estimates or
opinions change.


FOR FURTHER INFORMATION PLEASE CONTACT: 
EastCoal Inc.
Abraham Jonker
President
+1 (604) 681-8069


EastCoal Inc.
George Lawton
CFO
+1 (604) 681-8069
www.eastcoal.ca


Cenkos Securities plc
Ken Fleming/Alan Stewart/Derrick Lee
+44 (0) 131 220 6939


Tavistock Communications
Jos Simson/Emily Fenton/Mike Bartlett
+44 (0) 207 920 3150

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