Cobalt Exercises Option to Acquire Units in the Westchester Coal Limited Partnership

Calgary, Alberta CANADA, June 11, 2010 /FSC/ - Cobalt Coal Corp. (CBT - TSX Venture), is pleased to announce it has exercised its option to acquire 21 class A units (the "Units") in the Westchester Coal Limited Partnership. The Corporation has issued 2,436,000 common shares (with a deemed value of CDN $0.25 per share) to insiders of Cobalt as consideration for the acquisition of the Units pursuant to the terms of the limited partnership unit acquisition option agreement dated August 21, 2009.

For further information please contact:

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

Rick Couronne
Consultant
Cobalt Coal Corp
Office: (403) 262-5510,
rcouronne@cbtcoal.com

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

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.

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 expectations of future production and cash flows from the Westchester Mine, as well as the expansion plans of Cobalt. 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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