Press release from Filing Services Canada
Cobalt Announces Closing of Private Placement

Wednesday, July 07, 2010

FSC / Press Release

Cobalt Announces Closing of Private Placement

Calgary, Alberta CANADA, July 07, 2010 /FSC/ - Cobalt Coal Corp. (CBT - TSX Venture), is pleased to announce that it has closed the first tranche of its previously announced brokered private placement (the "Offering"). Cobalt has sold 1,495,000 units of the Corporation ("Units") at a price of $0.17 per Unit for gross proceeds of $254,150. Each Unit consists of one common share of the Company ("Common Share") and one common share purchase warrant ("Warrant"), with each Warrant entitling the holder to acquire one Common Share at a price of $0.25 per share for 24 months from the closing date of issuance of the Warrants (the "Closing Date"). All securities issued pursuant to the Offering will be subject to a four month hold period expiring on November 8, 2010.

Northern Securities Inc. ("NSI") acted as agent of the Company pursuant to the Offering. NSI was paid a cash commission equal to 7.5% of the gross proceeds and was granted broker options ("Broker Options") to purchase 7.5% of the number of Units sold under the Offering, with each Broker Option entitling the holder to acquire one Unit of the Company at a price of $0.17 per Unit for a period of 24 months from the Closing Date.

The proceeds made available through the sale of Units will be used for general working capital purposes. For further information please contact:

David M. Lewis
President and CEO
Cobalt Coal Corp.
Office: (403) 262-5510
dlewis@cbtcoal.com

The Howard Group Inc.
Investor Relations
Dave Burwell,
Office: (403) 410-7907
dave@howardgroupinc.com

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

About Cobalt:
Cobalt is a publicly traded coal exploration and production company headquartered in Calgary, Alberta, Canada with a regional office in Welch, West Virginia USA. Cobalt was created in August 2007 to capitalize on the growth opportunities that exist in the modern metallurgical coal mining industry. Cobalt owns a 60% after payout interest in the Westchester Mine, and operates this mine through its wholly owned subsidiary Westchester Coal GP Inc.

Initially, Cobalt is concentrating its efforts on developing an asset base in the Appalachian coal producing region of the United States, and intends to expand internationally as opportunities allow. The Appalachian area includes parts of West Virginia, Virginia, Kentucky, Ohio, Pennsylvania, the Carolinas, and Tennessee. Appalachia's history of producing large volumes of metallurgical coal, along with the under-utilized coal infrastructure already in place, make the area ideal for the implementation of Cobalt's business model. Coal assets in the area can be acquired and brought into production relatively quickly. The resulting cash flows are generated in the short term without the need to invest large amounts of time and capital.

All of these factors align with Cobalt's strategy to provide near term cash flow and high growth to shareholders.

READER ADVISORY
Statements in this news release may contain forward-looking information including the expansion plans of Cobalt and use of proceeds of the Offering. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Corporation. These risks include, but are not limited to, the risks associated with the coal mining industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.

Cobalt Coal Corp.
Suite 300, 5 Richard Way SW
Calgary, Alberta Canada T3E-7M8

Source: Cobalt Coal Corp. (CBT - TSX-V)
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