The Westchester Coal Mine is located in McDowell County, West Virginia, a region with an extensive history of producing high grade metallurgical coal. Cobalt is mining a geological formation known as the 'Sewell' coal seam. The Sewell has long been a producer of very high quality metallurgical coal used in the global steel industry. Cobalt owns a net after payout 60% interest in the Westchester Coal Mine.

The Westchester Coal Mine was acquired by Cobalt in February, 2008, and began commercial coal production in December 2008. The Mine was put on care and maintenance in April, 2009, when Cobalt lost its coal sales contract due to the Global Recession.

Metallurgical coal markets have since rebounded, and Cobalt expects to be able to sell its Westchester coal at economically acceptable price levels in the near future.

Cobalt commissioned an NI 43-101 compliant Technical Report on the Westchester Coal Mine which was completed by Norwest Corporation. The technical report can be found on SEDAR by clicking here. Norwest has assigned a value of CDN $7.2 mm to Cobalt’s net interest in the Westchester Coal Mine.