Western Coal Announces Intention to Redeem Convertible Debentures

VANCOUVER, April 28 /CNW/ - Western Coal Corp (TSX: WTN, WTN.WT and WTN.DB and AIM: WTN) ("Company" or "Western") announces that due to the Company's recent share price performance, it has provided the holders of its 7.5% convertible unsecured subordinated debentures ("Debentures") (TSX: WTN.DB) notice of its intention to redeem, effective May 31, 2010 ("Redemption Date"), all of its issued and outstanding Debentures. The Company agrees to pay to the holders of the Debentures as at the close of business of May 19, 2010, $1,000 per Debenture plus accrued and unpaid interest on the Redemption Date. The Debentures may be converted at any time prior to 4:30pm (Toronto time) on May 30, 2010 at a conversion price of $4.00 per common share. The Company's share price as at the close of business today was $6.37.

Keith Calder, President and Chief Executive Officer of Western Coal Corp. comments, "Reducing the company's debt level is a strategic importance as we continue to strengthen our financial position during our period of high growth. Given the company's current share price, we expect the redemption of the debentures to have minimal impact on cash flows."

About the Debentures

The Debentures are due March 24, 2011 and have a CUSIP No. 957860 AA 7. The Debentures may be redeemed on the Redemption Date by presenting and surrendering the Debentures at the following offices of Computershare Trust Company of Canada:

    
        2nd floor, 510 Burrard Street
        Vancouver, BC V6C 3B9
        Attention: Manager, Corporate Trust
                    OR
        11th floor, 100 University Avenue
        Toronto, Ontario M5J 2Y1
        Attention: Manager, Corporate Trust
    

About Western Coal

Western Coal is a producer of high quality metallurgical coal from mines in northeast British Columbia (Canada) and high quality metallurgical coal and compliant thermal coal from mines located in West Virginia (USA). Western Coal also owns approximately 55% of Energybuild Group Plc (EBG: AIM) which produces high quality anthracite and metallurgical coal in South Wales (UK). Other interests owned include a 48% interest in Mandalay Resources Corporation (TSX.V: MND), 42% interest in Xtract Energy (XTR: AIM), 20% interest in NEMI Northern Energy & Mining (NNE.A: TSX). The Company is headquartered in Vancouver, BC, Canada, and trades on the AIM and TSX stock exchanges under the symbol "WTN". More information can be found at www.westerncoal.com

For further information: David Jan, Director, Investor Relations, Phone: [phone], Email: [email protected]