Cline Mining on schedule - drilling program - three new seams

TORONTO, Aug. 18 /CNW/ - Cline Mining Corporation (TSX: CMK) ("Cline" or the "Company") is pleased to announce that the development of its New Elk Coal Mine continues on schedule and within budget. Cline's New Elk Coal Mine has now completed five drill holes as part of an exploration program of 15 drill holes to detail the specific metallurgical coal tonnage and quality for sale to the steel making industry over the first 20 years of mining at the New Elk Coal Mine. The 15 holes are being drilled 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. 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, which was utilized by Agapito Associates, Inc. in its Preliminary Assessment and NI 43-101 compliant Technical Report dated March 13, 2010.

Results from drilling are consistent with the Company's previously published coking coal quality data. In addition to the coring and coal quality testing, the exploration program is designed to determine geotechnical, hydrological and other engineering properties of the rock intervals within the New Elk Coal Mine, required as design parameters for detailed mine planning. The geotechnical properties obtained as part of this exploration program have been already used for the numerical modeling and assessment of the initial mine development plan in the Apache seam. Once completed, the results of this exploration program will be used as a basis for an NI 43-101 compliant feasibility study, which should be available by October 2010.

The major New Elk coal seams identified and quantified to date are the Maxwell, Apache and Allen seams, as detailed in the Behre Dolbear NI 43-101 compliant Technical Report 315 million ton coal resource calculation. The present drilling program and continued mine development has now identified the existence of an additional three coal seams in the coal structures on the property. These are presently identified as the Yellow, Blue and Red seams, found at a shallower depth and sequential with the Maxwell, Apache and Allen seams. The coal seams at New Elk are each relatively flat lying and parallel in sequence. An examination of historical archive records has indicated that they may contain important data on the new seams, which the Company is now investigating. In the meantime the new drilling program will also record data on the new seams from the drill cores. Initial archival data, and current drill results, indicate that the new seams may be significant to the resource and its potential.

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.

For further information: Head Offices: Toronto Office: TD Canada Trust Tower, 161 Bay Street, 27th Floor, Toronto, ON, M5J 2S1; Vancouver Office: Suite 2950 -650 West Georgia Street, Vancouver, BC, V6B 4N8, Contacts: Ken Bates, President and CEO, Ernest Cleave, Vice-President and CFO, Office: [phone], Email: [email protected], Website: www.clinemining.com