Coalcorp Provides Updated Default Status Report

TORONTO, May 13 /CNW/ - Coalcorp Mining Inc. ("Coalcorp" or the "Company") (TSX-CCJ) is providing its sixteenth Default Status Report in accordance with National Policy 12-203: Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203"). On September 16, 2009, the Company announced that it would be delayed in the filing of its annual financial statements and related MD&A for the financial year ended June 30, 2009 (the "Annual Financials") and 2009 Annual Information Form beyond their filing deadlines of September 28, 2009.

On December 16, 2009, Coalcorp announced that it filed its Annual Financials, however remained delayed in the filing of its 2009 Annual Information Form.

On October 19, 2009, the Ontario Securities Commission (the "OSC") issued a management cease trade order related to the Company's securities against the Chief Executive Officer of the Company with respect to the delayed filing of the Annual Financials and 2009 Annual Information Form. The management cease trade order will remain in effect for so long as the 2009 Annual Information Form and related officer's certifications are not filed. The issuance of such management cease trade order does not affect the ability of persons to trade in their securities of Coalcorp, other than the Chief Executive Officer. However, the OSC, in its discretion, may determine at a later time that it would be appropriate to issue a general issuer cease trade order affecting all of the Company's securities.

    
    Update Matters
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The Company reports the below matters which are material changes to the information contained in the fifteenth default status report issued by the Company on April 28, 2010.

On May 7, 2010, the Company announced the purchase, as part of its new corporate strategy, of a CAD$8,000,000 unsecured convertible debenture (the "Debenture") from Formation Metals Inc. ("Formation") (TSX-FCO). The Debenture will have an initial term of 18 months with an interest rate of 12%, payable in shares, and may be extended by either party for an additional 18 months. The Debenture is convertible into Formation's common shares at $1.50 per share during the initial term and at the market price of the common shares at the end of the period if the term is extended for a subsequent 18 months. Upon conversion of the Debenture, Coalcorp would have ownership of and control over approximately 15% of Formation's common shares as of today's capitalization. Charles Entrekin, a Coalcorp director, will join the board of Formation upon the close of this transaction. Dr. Entrekin has over 35 years of experience in the specialty and exotic non-ferrous metal industries, including cobalt. Coalcorp also announced on that date that it intends to change its name to Metallum Resources Inc. subject to shareholder approval at its next annual meeting, to more appropriately reflect its new mandate.

On April 30, 2010, the Company filed its 2009 Annual Information Form. The Company will be filing the related officer's certification.

The Company confirms that, except as described herein and in its initial default announcement and its subsequent default status reports: (i) there has been no material change to the information set out in its initial default announcement filed pursuant to NP 12-203; (ii) there has been no failure by the Company in fulfilling its stated intention with respect to satisfying the provisions of the alternative information guidelines set out in NP 12-203; (iii) there is no actual or anticipated specified default subsequent to that disclosed in the initial default announcement; and (iv) there is no other additional material information concerning the affairs of the Company that has not been generally disclosed.

The Company will continue to provide bi-weekly updates, as required by NP 12-203, until the required filings have been made and the Company is no longer in default.

Statements made in this news release may be forward-looking and therefore subject to various risks and uncertainties. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Coalcorp does not undertake to update any forward-looking statements; such statements speak only as of the date made.

ABOUT COALCORP

The board of directors of Coalcorp have met and are in the process of developing a new business strategy for the Company which will capitalize on the Board's and management's expertise, to invest in projects in the mining, metallurgical and mineral industries. Further information can be obtained under the Company's profile at www.sedar.com.

For further information: Steven Cresswell, Interim Chief Executive Officer, [phone]