Eastcoal Inc.: Correction to Technical Report on Menzhinsky Coal Mine

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/27/12 -- EastCoal Inc. (TSX VENTURE: ECX) (the "Company" or "EastCoal") advises that the NI 43-101 technical report titled "Technical Report of the Menzhinsky Coal Mine, Lugansk Oblast, Ukraine" dated February 29, 2012" on the Menzhinsky Mine located in Ukraine (the "Menzhinsky Mine" or the "Mine") filed on March 15, 2012 contains errors in the economic analysis section of the report.

Wardell Armstrong International of United Kingdom, the author of the report, indicated that there were errors in its calculations contained in the economic analysis of the report. The report understated revenues from the underground operations of the Menzhinsky Mine by US$383 million or 41%. Furthermore, the report overstated revenues from the waste tips by US$89 million or 100% and this latter overstatement was also included in the net present value ("NPV") calculation of the Menzhinsky Mine, overstating the NPV by US$69 million or 22%.

The revised report, that will be filed today, concludes that the proposed expansion of the mine and waste tip washing operation has a NPV of US$247 million using a discount rate of 10% over the 12-year period. The estimated average operating cost per saleable tonne used in the technical report is US$82 and the technical report estimates that positive cash flows will be achieved within two years. The net cash flow from the waste tip washing operation is expected to be US$51 million over the first five years of operation.


The Chairman of EastCoal, Mr. John Byrne, commented:

"We strongly believe the Menzhinsky Mine is an attractive investment for the Company, both in the short term from the waste tip washing cash flows and the long term, and that the reduction in the net present value does not reduce the value of the mine to the Company."

The revised report is available on SEDAR (www.sedar.com) and the Company's website (www.eastcoal.ca). The technical content of this news release has been reviewed and approved by Colin Stocks, a Qualified Person as defined by National Instrument 43-101 who is the Technical Director of the Company.


By Order of the Board,

John Byrne
Chairman



About EastCoal Inc.

EastCoal Inc. is currently developing its 100% owned Verticalnaya anthracite mine.


This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking information. These and all subsequent written and oral forward-looking information are based on estimates and opinions on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, EastCoal assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change. Completion of the transaction described herein will be subject to numerous conditions, including the negotiation and execution of definitive agreements. There can be no assurance that the transaction will be completed as proposed or at all.

Neither 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.



Contacts:

EastCoal Inc.
John Byrne
Chairman
(604) 681-8069
(604) 685-4675 (FAX)
www.eastcoal.ca