CLINE - NEW ELK - HIGH QUALITY COKING COAL - UPDATE - DISCUSSION

TORONTO, Sept. 30 /CNW/ - Cline Mining Corporation (TSX: CMK) ("Cline" or the "Company") is pleased to announce that the ongoing pre-production drilling program at its New Elk metallurgical steel making coal mine in Colorado has detailed and confirmed high quality metallurgical steel-making coking coal in the coal seams.  The in-seam coal qualities reported by SGS from the recent drill cores show the coal to be in the premium high-vol category in each of the seams to be mined over the next twenty years. 

New Elk has completed nine pre-production drill holes and is drilling a further six to delineate the specific coal reserves that will be mined and sold to meet the Company's projected 55 million tons of coking coal sales during the first 20 years of production; a rate of some three million tons of saleable steel-making coal each year. The 55 million tons will be mined from a 315 million ton coal resource as quantified in the 2008 Behre Dolbear National Instrument 43-101 ("NI 43-101") compliant Technical Report, as relied upon by Agapito Associates, Inc. in its Preliminary Assessment and NI 43-101 compliant Technical Report dated March 13, 2010. The 15 drill hole program is to support the full 20 year initial mining plan and will be completed in October, next month. The quality of coal in the seams included in the 20-year initial mine plan as reported to date from the above current drilling program is premium high grade steel making coking coal. The high grade specification that can be  delivered on "as received" basis is FSI 7.0-8.0; Ash 8.5%; Moisture 8.5%; Volatiles 35%; Fluidity 30,000 ddpm; Reflectance 0.95%; Sulfur Max 0.5%; Btu/lb. 13,500-14,000. Test qualities are determined and reported by SGS.

The economic revenues generated by the New Elk Coal Mine to the town of Trinidad, CO, Las Animas County, the State of Colorado and to the company and its employees during the first 20 years of operation, at current coal prices, could be some $7 billion.  The mine has ample coal resources for the future, and after bringing the present mine back into production, the Company proposes to evaluate a mine expansion and increase production by up to 100%. The Company is already installing mine infrastructure to facilitate such a decision.  

The present drilling program has also been directed to the newly identified coal seams designated Red, Blue, Yellow and Green. These seams were found at shallower depths, sequential with the Maxwell, Apache and Allen seams and all relatively flat and parallel in sequence.  The current drilling results indicates that the new seams appear to be metallurgical steelmaking coal similar to the previously mined Allen and Maxwell seams as well as Apache seam.  Consequently, these additional seams could be a significant additional resource for the future.

Dennis Z. Mraz, P.Eng., Chief Operating Officer of Cline, is a Qualified Person within the meaning of NI 43-101 and is responsible for the technical content of this press release.

Cline's New Elk Coal Mine is located in Las Animas County, Colorado, U.S.A and is accessed directly by paved highway from the town of Trinidad, southern Colorado. Employment levels at the mine have reached 80 people, about half of whom have been hired locally. In addition to its coal resource the coal mine assets include a coal preparation plant, product coal silos, buildings, surface real estate, conveyor systems, electrics, underground workings with mine portal access from the plant site, mine permit and a permitted coal refuse disposal site. First production at Cline's New Elk Coal Mine is planned for Q4 of 2010. Production of 1.2 million tons of metallurgical grade coal in anticipated in 2011, ramping up to 3.0 million tons annually by 2013.  

For more information on Cline's New Elk Coal Mine, a video is available showing the progress and key people interviews in Trinidad and at the New Elk Coal Mine and can be viewed on Cline's website (www.clinemining.com).

About Cline: Cline has significant metallurgical coal property interests in British Columbia, Canada and in Colorado, U.S.A. with NI 43-101 compliant independent Technical Reports. Cline Mining Corporation is a mine development company focused on the exploration and development of metallurgical steel making coals in Canada and the U.S., iron ore in Madagascar and the Cline Lake Gold Mine Property in northern Ontario, Canada.

CLINE MINING CORPORATION
Ken Bates, President and Chief Executive Officer

Forward-Looking Information

This news release may contain forward-looking statements (including "forward-looking information" within the meaning of applicable Canadian securities laws), including the magnitude or quality of mineral deposits, the economic assessment and estimates regarding the mine life of the New Elk coal mine, and the timing and completion of financings. The timing of drilling and work recommended by the NI 43-101 Technical Report is based on current internal expectations, which may prove to be incorrect. Other risk factors are discussed under "Risk Factors" in Cline's Annual Information Form for its 2009 financial year end, and include management's ability to anticipate and manage risk factors. Such forward-looking statements necessarily involve known and unknown risks and uncertainties that are common to junior mineral exploration companies. These risks and uncertainties include, among other things, the Company's need for additional funding to continue its exploration efforts, changes in general economic, market and business conditions, and competition for, among other things, capital and skilled personnel. These statements are not a guarantee of future performance and undue reliance should not be placed on them. The Company undertakes no obligation to update or revise any forward-looking statements except as required by applicable laws. Copies of the Company's public filings under applicable Canadian securities laws are available at www.sedar.com. The Company further cautions that information contained on, or accessible through, this website is current only as of the date of filing such information and may be superseded by subsequent events or filings.

Head Offices:

Toronto Office: 181 Bay Street, Heritage Building, 3^rd floor, Brookfield Place, Toronto, ON, M5J 2T3
Vancouver Office: Suite 2950 -650 West Georgia Street, Vancouver, BC V6B 4N8

For further information:

Contacts: Ken Bates, President and CEO
Ernest Cleave, Vice-President and CFO
Office: [phone]
Email: [email protected]
Website: www.clinemining.com