CanAm Reports Second Quarter Coal Sales of 81,000 Tons

CanAm Coal Corp. (TSX VENTURE:COE) ("CanAm" or the "Company") is pleased to
report coal sales for the second quarter ending July 31, 2011. Coal sales of
81,453 tons were achieved in the second quarter of fiscal 2012 as compared to
12,314 tons in Q2 of fiscal 2011 or an increase of 69,139 tons. Coal sales were
up 50,798 tons from the previous quarter of fiscal 2012. The second quarter
marks the first quarter that includes coal sales from Birmingham Coal & Coke
("BCC"), an Alabama based coal mining operation in which the Company acquired a
50% ownership stake on May 1, 2011. For the six month period ended July 31,
2011, coal sales were 112,108 tons as compared to 22,264 tons in fiscal 2011 or
a fivefold increase. 




                           Three Month Period           Six Month Period    
                             Ended July 31,              Ended July 31,     
                                                                            
                                2011        2010            2011        2010
                        ------------------------    ------------------------
                                                                            
Metallurgical coal            10,830      10,027          30,028      18,366
Thermal coal                  70,623       2,287          82,080       3,898
                        ------------------------    ------------------------
                                                                            
Total                         81,453      12,314         112,108      22,264
                        ------------------------    ------------------------
                        ------------------------    ------------------------



Sales for the quarter were characterized by:



--  First time contribution of 59,069 tons of coal sales from the Company's
    50% ownership in BCC's three operating mines, Bear Creek, Old Union and
    Gooden Creek, and coal sales of 3,206 tons from BCC's brokerage
    business. All of BCC's mines produce high quality thermal coal. 
--  Coal sales of 19,179 tons from the Powhatan mine which is up 6,865 tons
    from the comparable period in the previous year and down 11,476 tons
    from the previous quarter. Lower production as compared to the previous
    quarter is mainly the result of operations moving onto the next mining
    increment with resulting infrastructure work requirements, some
    reclamation work and repositioning of the high wall to achieve higher
    operating efficiencies. 
--  Higher thermal coal recovery rates from the Mary Lee coal seam at the
    Powhatan mine resulting in a 56/46% metallurgical/thermal coal mix for
    the second quarter. The ratio of metallurgical/thermal coal for the six
    month period ended July 31, 2011 at the Powhatan mine was 60/40%. 



"The second quarter is another major milestone for the Company as we are, for
the first time, reporting our share of production from the Bear Creek, Old Union
and Gooden Creek mines. As expected, the BCC team continues to do an excellent
job in operating these properties and they continue to implement and evaluate
opportunities to organically grow or expand this production," said Tim Bergen,
CEO of CanAm.


The Company will release its full second quarter financial results at the end of
September 2011.


About CanAm Coal Corp. 

CanAm is a coal producer and development company focused on growth through the
acquisition, exploration and development of coal resources and resource-related
technologies. CanAm's main activities and assets include its four operating coal
mines in Alabama, the exclusive rights to a proprietary Coal to Liquids
technology which converts coal into liquid fuels (such as oil, jet fuel) at an
economical cost with zero airborne emissions and the Buick Coal Project which
holds significant coal resources, 188 million indicated and 103 million inferred
resources, in Colorado, USA (see the technical report entitled "Limon Lignite
Project, Elbert County, Colorado, USA," dated October 26, 2007 and filed on
SEDAR on November 2, 2007). Other coal and related opportunities continue to be
evaluated on an ongoing basis. 


This news release may contain certain forward-looking information. All
statements included herein, other than statements of historical fact, is
forward-looking information and such information involves various risks and
uncertainties. There can be no assurance that such information will prove to be
accurate, and actual results and future events could differ materially from
those anticipated in such information. A description of assumptions used to
develop such forward-looking information and a description of risk factors that
may cause actual results to differ materially from forward-looking information
can be found in the Company's disclosure documents on the SEDAR website at
www.sedar.com. The Company does not undertake to update any forward-looking
information except in accordance with applicable securities laws.
Benz Capital (TSXV:BCC)
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