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Message: Cline and New Elk Organization and Appointments - Sep 30, 2008

Cline and New Elk Organization and Appointments - Sep 30, 2008

posted on Jan 01, 2009 05:34PM
Sep 30, 2008 16:15 ET

Cline and New Elk Organization and Appointments

TORONTO, ONTARIO--(Marketwire - Sept. 30, 2008) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Cline Mining Corporation ("Cline" or the "Company")(TSX:CMK) announces appointments to the Board of Directors and management teams of Cline and its wholly-owned subsidiary, the New Elk Coal Company LLC. ("New Elk"), located in Colorado, USA.

The Board of Directors of Cline is pleased to announce the following appointments: Mr. John McCulloch as Director, Mr. Ernest Cleave as Vice-President (in addition to his role as CFO) and Ms. Alana Kelcey as Corporate Secretary.

Mr. Kai Knotsch has resigned from his role as Director of Cline, consistent with the acquisition by Mitsui Matsushima International Ltd. of the Cline shares previously held by ThyssenKrupp MinEnergy GmbH ("ThyssenKrupp"). The Company wishes to express its gratitude to both Mr. Knotsch for his dedicated efforts and to ThyssenKrupp for its support of Cline during this important development period.

The Board is also pleased to announce the Board of Directors of New Elk: The Hon. Bill McKnight PC as Chairman of the Board, Mr. John McCulloch as Vice-Chairman, and Messrs. Ernest Cleave and Paul Phillips as Directors. An additional appointment of a Colorado-based Board member of New Elk is envisaged.

The Company is also pleased to appoint Mr. John McCulloch as CEO of New Elk, while Mr. Wayne Coverdale will continue as President. Mr. McCulloch is an experienced senior coal mining executive, formerly with British Coal in the U.K. and subsequently with companies in the United States. He has extensive experience in the design, development, construction and operation of underground coal mines and its equipment, coal plants and processing. Mr. McCulloch and his team were instrumental in assisting Cline with the developmental work involved in identifying and acquiring New Elk.

Cline is currently on course with bringing New Elk back into the commercial production of high quality metallurgical coking coal. The management plan is to recommence production within the first half of 2009 at an annual rate of 500,000 tons of clean coal in the first stage (initially trucking to rail head) and to increase production up to the present plant design capacity of 3 million tons of clean coal per annum by year three, with the re-installation of the rail line from the coal plant to the major U.S. railroad carriers providing unit train service to steel mills in the U.S.A. and abroad.

The New Elk property contains 315,000,000 tons of Canadian National Instrument 43-101 ("NI 43-101") compliant in-place metallurgical steel making and thermal grade coal. The details may be viewed in the May 2008 43-101 Technical Report from Behre Dolbear & Company Ltd. to Cline. Mr. Gardar G. Dahl Jr. C.P.G. is the NI 43-101 Qualified Person for the Report. The complete NI 43-101 is available on the Cline website www.clinemining.com and on SEDAR at www.sedar.com.

New Elk includes an in-place coal preparation plant with a designed production capacity of 550 tons per hour, product coal silos and rail load-out, buildings, railway right of way, surface real estate, mining equipment, conveyor systems, electrics, underground workings with mine portal access from the plant site, mine permit and coal waste dump.

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