Cline New Elk Coal Mine on target

/THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN/

TORONTO, May 17 /CNW/ - Cline Mining Corporation (TSX:CMK) ("Cline" or "The Company") is pleased to announce that since commencing the Rehabilitation Program at their New Elk Coal Mine in Las Animas County, Colorado on April 22, 2010, the New Elk underground coal miners have now completed installation and clean-up of roof support in two-thirds of the access slopes and have advanced to within 400 feet of the coal seam. These access slopes allow coal to be transported out of the mine and preparations are now being made for the installation of a conveyor system capable of transporting coal at a rate of 4200 tons per hour. Rehabilitation and upgrading of surface infrastructure has now begun on schedule with crews on site accessing existing equipment and preparing for installation of new processing equipment.

The underground and surface upgrades will allow the New Elk mine to commence first production in Q4 of 2010 to reach an annual capacity of 1.3 million tons in 2011, proceeding continuously to the production and sale of 3.0 million tons per year of metallurgical steelmaking coal annually slated for world export markets. The Mine has large in-place compliant coal resources and further significant increases in production over the 3 million ton annual rate can be contemplated in the future.

At least ten local Trinidad businesses have been providing supplies and services on a regular basis as the Rehabilitation program continues at the New Elk Coal Mine near Trinidad, Colorado. The employment level at the mine has reached sixty people, at least half of which have been hired locally. Employment levels are expected to reach 450, providing needed jobs and additional support suppliers and independent contractors in the community. "Cline is now very much a part of the community of Trinidad and Las Animas County, Colorado and we are committed to responsible stewardship that will bring much needed jobs and stimulus to the local economy," says Cline President and CEO Kenneth Bates.

Cline's New Elk Coal Mine in Colorado has a long and successful history of producing and delivering high quality metallurgical (coking) coal from its underground mine in southern Colorado to the steel making industry. The mine has a measured and indicated coal resource of 315,000,000 tons of in-place coal, which was documented in the 2008 Behre Dolbear independent NI 43-101 Technical Report, followed by the Agapito Associates Inc. NI 43-101 compliant Technical Report of March 13, 2010. In addition to its coal resource, the coal mine assets include a coal preparation plant, product coal silos, buildings, railway right of way, 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. The mine is accessed directly by paved highway from the town of Trinidad, southern Colorado.

About Cline Mining: 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 information relating to 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 43-101 Report is based on current internal expectations, which may prove to be incorrect. Other risk factors are discussed under "Risk Factors" in Cline's 2008 Annual Information Form, 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 securities 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. The technical information contained in this press release has been prepared and reviewed by Dennis Mraz, P.Eng., Executive Vice President and Chief Operating Officer of the Company, a qualified person within the meaning of NI 43-101. This Press Release is not for distribution to U.S. news services or for dissemination in the United States, and does not constitute an offer of the securities described herein. The securities referenced herein have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.

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

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