CanAm Obtains the Old Union II Permit and Acquires New Coal Leases Totaling 123 Acres

CanAm Coal Corp. (TSX VENTURE:COE)(OTCQX:COECF) ("CanAm" or the "Company") is
pleased to report on the issuance of a mining permit for the Old Union II mine
and the acquisition of new coal leases.


Old Union II Permit

On August 8, 2012, the Company's subsidiary, Birmingham Coal & Coke ("BCC"), was
issued permit # 3962 by the Alabama Surface Mining Commission ("ASMC"). This
permit, also known as the Old Union II permit, allows the Company to start
mining operations effective immediately. The Old Union II permit is a 5 year
surface mining permit covering a total of 1,393 acres and 1,108 minable acres.
The total recoverable tons of coal within the permit area is 1,274,750 tons.
(See NI 43-101 report dated May 2011 on www.sedar.com). The Company has begun
the mine development work and is targeting a September 2012 production startup.
Annual production from the Old Union properties, which include the existing Old
Union and the now permitted Old Union II mine sites, is forecasted at 360,000 to
400,000 tons per annum. To put this in context, Old Union mine production for
the first 6 months of 2012 was approximately 110,000 tons.


The coal within the Old Union II mine complex is considered to have the same
qualities/characteristics as the coal that is currently being mined from the
existing Old Union mine. On average, the proximate analysis has indicated 9%
ash, 1.0% sulfur and 12,400 BTU/lb. These average values are consistent with the
assays reported from drilling; mine face sampling and product deliveries. (See
NI 43-101 report dated July 2011 on www.sedar.com).


New Coal Leases

The Company is also pleased to report that BCC has acquired additional surface
mining rights to two tracts of land totaling approximately 133 acres. These
lands are an integral part of the Old Union and Old Union II mine complex and
are in addition to the 574 acres of land acquired in the period April to June
2012 and previously announced in a press release dated July 10, 2012. 


The first of the surface mining rights was acquired through Molag Timberprop,
LLC through a surface mining lease. The lease consists of approximately 40 total
acres with a management estimate of 23 mineable acres. The lease has a 3 year
term and includes industry standard royalty provisions with no advance minimum
royalties. This property is currently permitted and is within the Old Union
mining complex.


The second surface mining lease is referred to by the company as the H.H. and
Alice Kilgore property and will be added to the Old Union II mine permit. It
consists of approximately 93 total acres with a management estimate of 64
mineable acres. The lease has an indefinite term that runs until the mining and
reclamation are completed and includes industry standard royalty provisions with
no advance minimum royalties. This is a key lease acquisition as, from a mine
development and operating perspective, this property will allow for direct and
easy access to the eastern portion of the Old Union II mine site from County
Road 21. 


"We are excited about our new Old Union II permit as it will allows us to expand
our mining operations, increase our production of high quality thermal coal and
continue to meet our customer commitments," said Tom Lewis, Vice President of
BCC. "In addition, the acquisition of the Kilgore property will save us time and
money as we avoid having to undertake a major bridge project." 


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 coal operations in
Alabama 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. 


Forward-Looking Information and Statements

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


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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