COALSPUR'S QUARTERLY REPORT TO THE AUSTRALIAN SECURITIES EXCHANGE FOR THE
PERIOD ENDING 30 SEPTEMBER 2010

PERTH, Western Australia, Oct. 29 /CNW/ - Coalspur Mines Limited ("Coalspur" or "Company") (ASX: CPL, TSX: CPT) is pleased to present its quarterly report for the period ended September 30, 2010.

Highlights:

• Completed strategic and institutional placements to raise A$80 million from North American and European based investors. BMO Capital Markets and JP Morgan acted as Joint Lead Agents and Lead Bookrunners for the private placement of 55 million shares.
  
  
• Funds from the placements were used to fast track the acquisition of six new coal leases (the "New Coal Leases") which are located adjacent to the Company's existing Vista Coal Project ("VCP" or "Project") coal leases. Settlement of the acquisition was completed on October 25, 2010.
  
  
• Completed a successful listing on the Toronto Stock Exchange, with the Company's Shares trading on the TSX from October 27, 2010.
  
  
• Made substantial progress on a mining Pre-Feasibility Study ("PFS") on VCP which will focus on substantial mining synergies, increased production rate and longer mine life expected from the expanded Project, with results expected in the coming weeks.
  
  
• Completed an independent study which confirmed the export quality potential of the coal on the Project.
  
  
• Completed drilling programs on the Vista South Coal Project ("Vista South") and initiated further drilling programs on both VCP and Vista South.
  
  
• Commenced a bulk sampling program on the VCP with the aim of further refining coal quality and washability testing ahead of discussions with potential off-take parties.
  
  
• Acquired additional coal leases adjacent to Vista South in the Alberta Government's Public Offering of Crown Coal Rights, increasing the size of Coalspur's coal lease position in Alberta to over 32,000 hectares.

Following completion of the acquisition of the New Coal Leases, the Company had cash reserves of approximately A$20 million with no debt, putting the Company in a strong position to complete the PFS and move towards the commencement of a feasibility study early in 2011 whilst retaining 100% of the Project's off-take and marketing rights.

The significant work completed during the quarter together with the settlement of the New Coal Leases acquisition and completion of the strategic and institutional placements have strengthened the Company's view of the potential for developing the VCP into one of North Americas largest export thermal coal mines.

Going Forward

The Company has an exciting quarter ahead with a substantial amount of activity scheduled, including:

• Completion of the PFS which is anticipated by the Company to show increased production, longer mine life and initial Coal Reserves on the VCP;
  
  
• Completion of the bulk sampling program on the VCP;
  
  
• Completion of an initial Coal Resource on Vista South;
  
  
• Progression of permitting, public consultation and mine licensing on the VCP; and
  
  
• Marketing and analyst tours in North America to lift the profile of Coalspur in North American markets following the commencement of trading of Coalspur's shares on the TSX under the symbol CPT.

A complete version of the Company's "Quarterly Report to the Australian Securities Exchange for the Period Ending 30 September 2010" is available on the Company's website at www.coalspur.com and SEDAR at sedar.com.

Regulatory Disclosures

For further information regarding the Project, including a description of Coalspur's quality assurance program, quality control measures, the geology, samples collected and testing procedures in respect of the Project please refer to the technical report on the Project titled "Resource Estimate for the Vista Coal Property" (the "Technical Report") which is compliant with National Instrument 43-101 - "Standards of Disclosure for Mineral Projects" ("NI 43-101") and is available for review on SEDAR at sedar.com.

Competent Person / Qualified Person Statements

The information in this news release that relates to Coal Resources is based on information compiled by Mr. Robert J. Morris, who is a Member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta.  Mr. Morris is a full-time employee of Moose Mountain Technical Services, who are consultants to Coalspur. Mr. Morris has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a "Competent Person" as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' ("JORC Code"), and a "Qualified Person" under NI 43-101. Mr. Morris consents to the inclusion of such information in this news release in the form and context in which it appears.

The information in this news release that relates to Coal Quality is based on information compiled by Mr. Robert Leach, who is a Member of AusIMM.  Mr. Leach is a full-time employee of Bob Leach Pty Ltd, and is a consultant to Coalspur.  Mr. Leach sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a "Competent Person" as defined in the JORC Code, and a "Qualified Person" under NI 43-101. Mr. Leach consents to the inclusion of such information in this news release in the form and context in which it appears.

The scientific and technical information in this news release that relates to Exploration Results, other than information relating to Coal Resources and Coal Quality, is based on information compiled by Mr. Eugene Wusaty, who is a Member of the Association of Professional Engineers and Geoscientists of Alberta. Mr. Wusaty is a full-time employee of Coalspur.  Mr. Wusaty has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a "Competent Person" as defined in the JORC Code, and a "Qualified Person" under NI 43-101. Mr. Wusaty consents to the inclusion of such information in this news release in the form and context in which it appears.

Forward Looking Statements

This news release contains 'forward-looking information' that is based on the Company's expectations, estimates and projections as of the date on which the statements were made.  This forward-looking information includes, among other things, statements with respect to the Company's business strategy, plans, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations, mineral reserves and resources, scoping, pre-feasibility and other studies, results of exploration and related expenses.  Generally, this forward-looking information can be identified by the use of forward-looking terminology such as 'expect', 'potential', 'outlook', 'anticipate', 'project', 'target', 'likely', 'believe', 'estimate', 'intend', 'may', 'would', 'could', 'should', 'scheduled', 'will', 'plan', 'forecast', "evolve" and similar expressions. Persons reading this news release are cautioned that such statements are only predictions, and that the Company's actual future results or performance may be materially different.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information.  Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to the risk factors set out in the Company's Annual Information Form.  This list is not exhaustive of the factors that may affect our forward-looking information.  These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information.

The Company disclaims any intent or obligation to update or revise any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.

For further information:

Gene Wusaty
Managing Director and CEO
Telephone: [phone]