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Toronto, Ontario - June 2, 2011 - Royal Coal Corp. (TSX-V: RDA, F: RLC) announces that it intends to amend the terms of 4,354,445 warrants (the "Warrants") of the Company to extend the expiry date of the Warrants by 12 months (the "Amendments"). None of the Warrants are held by insiders of the Company.

In June, July and October 2009, CDR Minerals Inc. ("CDR") completed a series of private placement financings (the "Private Placements"), pursuant to which CDR issued 4,354,445 units (the "CDR Units") to investors at a price of US$0.45 per CDR Unit, for gross proceeds of US$1,959,500. Each CDR Unit consisted of one CDR common share (a "CDR Share") and one warrant (a "CDR Warrant"), each CDR Warrant being exercisable for one CDR Share at a price of US$0.50 for a period of two years following the closing of the respective Private Placements.

The CDR Warrants were issued as follows:

  • 833,334 CDR Warrants were issued on June 25, 2009 with an exercise price of US$0.50 and an expiry date of June 25, 2011;

  • 80,000 CDR Warrants were issued on July 10, 2009 with an exercise price of US$0.50 and an expiry date of July 10, 2011;

  • 2,241,111 CDR Warrants were issued on July 15, 2009 with an exercise price of US$0.50 and an expiry date of July 15, 2011; and

  • 1,200,000 CDR Warrants were issued on October 15, 2009 with an exercise price of US$0.50 and an expiry date of October 15, 2011.

At the time of the completion of the Private Placements and the issuance of the CDR Warrants, CDR was not a reporting issuer and none of its securities traded on any stock exchange.

On August 20, 2010, CDR completed a business connection (the "Business Combination") with the Company (formerly, Amalfi Capital Corporation). In connection with the Business Combination, the 4,354,445 CDR Warrants were replaced by the 4,354,445 Warrants of the Company, exercisable upon the same terms.

In an effort to ensure that the holders of the Warrants continue to support the Company and in order to attract additional investment in the Company by these holders, the Company will extend the term of each of the Warrants by 12 months by amending the expiry dates of the Warrants to:

  • June 25, 2012;
  • July 10, 2012;
  • July 15, 2012; and
  • October 15, 2012, respectively.

The TSX Venture Exchange approved the Amendments on May 30, 2011 and the Amendments will become effective on June 2, 2011.

About Royal Coal

Royal Coal is a coal exploration and production company, headquartered in Toronto, Ontario, Canada with a regional office in Hazard, Kentucky, U.S.A. whose primary business focus is developing producing surface coal mining operations in the Central Appalachian coal producing region of the United States, which includes parts of West Virginia, Virginia, Kentucky, Ohio, and Tennessee.

For further information contact Tom Griffis, Chairman of Royal Coal, at (416) 861-8775, or Richard Buzbuzian, Investor Relations, at (647) 501-3290.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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