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CLINE MINING ANNOUNCES MODIFICATION TO MINING SCHEDULE <br />Toronto, Ontario, Canada — July 11, 2012. Cline Mining Corporation ( "Cline Mining" or the "Company ") (TSX: <br />CMK) announces today that as part of its ongoing mine plan review process, intended to maximize short-term <br />production values and ensure the viability and NPV growth of the New Elk coal mine ( "New Elk ") (see Cline press <br />release dated July 3, 2012), the Company will be temporarily suspending production at New Elk to manage costs. <br />Cost efficiency, the preservation of the Company's financial condition and achieving sustainable sales contracts <br />remain a priority for the Company. <br />This announcement reflects previous statements regarding the mine optimization process. Due to the production <br />suspension, the Company's workforce will be temporarily reduced by 78 %, with the majority of the Company's <br />personnel at New Elk receiving notice of temporary lay -off for an anticipated sixty (60) day period, which gives the <br />Company time to pursue strategic alternatives, potential financing and complete the sale of the coal in inventory as <br />part of the review process. The Company will continue to provide health, vision and dental benefits to personnel <br />who are currently eligible for, and receiving, such benefits, during this sixty (60) day period. While the Company <br />anticipates that the duration of the layoffs will last for approximately sixty (60) days, the variability of market <br />conditions and other economic factors make it impossible to project an exact personnel return date with certainty. <br />The Company currently has approximately 70,000 tons of saleable coal stockpiled at New Elk and the Company will <br />retain personnel on an as- needed basis to load stockpiled product and maintain the asset for any sales made during <br />this period. <br />New Elk Coal Company LLC's recently- appointed Chief Operating Officer, David Stone commented: "The <br />Company acknowledges it is extremely regrettable that the workforce is being temporarily laid -off, but Cline <br />believes it is in the Company's best interests to manage its cash position during the mine optimization period. The <br />combination of cash conservation from the temporary suspension of operations and reduction of our workforce will <br />enable both the plan to be properly developed and implemented efficiently and effectively. During this time, the <br />Company has a significant stockpile of quality coal product and a workforce capable of loading the coal should a <br />sales agreement be made." <br />Ken Bates, President, CEO & Director of Cline Mining commented: "The Company's Board of Directors felt it <br />prudent to make these decisions given current market conditions, which preserves the Company's financial <br />condition as we move toward completing the mine review and optimization process which we believe will make <br />certain the long term viability and NPV of the New Elk coal mine." <br />About Cline: Cline has metallurgical coal property interests in British Columbia and in Colorado, U.S.A. with NI <br />43 -101 independent Technical Reports. Cline Mining Corporation is focused on the exploration and development of <br />metallurgical steel making coals in Canada and the U.S., and on its iron ore property in Madagascar and its Cline <br />Lake gold property in northern Ontario, Canada. <br />Head office: Brookfield Place, 181 Bay Street, 3rd Floor, Clarkson Gordon Heritage Building, Toronto, ON, <br />M5J 2T3 <br />Contact: <br />Ken Bates, President and CEO <br />Office: (416) 504 -7600 <br />Email: kbates4xlinemining.com <br />Belinda Labatte <br />Greg DiTomaso <br />The Capital Lab <br />Office: (647) 438 -2193 <br />Email: investor(aclinemining.com <br />