Atrum Coal NL: Announces Placement and Block Trade

Sydney - Atrum Coal NL ACN 153 876 861 ("Atrum" or the "Company") (ASX:ATU) (OTCMKTS:ATRCF) is pleased to announce that it has received irrevocable commitments for the placement to institutional and sophisticated investors which will result in the issuing of 27,000,000 new fully paid ordinary shares in Atrum at an issue price of $0.50 raising a total of $13,500,000 ("Placement").

HIGHLIGHTS

- Irrevocable commitments received for the placement of $13,500,000 at $0.50 per share from institutional and sophisticated investors

- Confirmation that the 24,000,000 shares previously owned by Russell Moran and referred to in the ASX Release of 12 December 2016 will be subject to a Block Trade

The Company had proposed to raise up to $10,000,000 but due to strong demand, Atrum agreed to increase the Placement to $13,500,000.

The funds raised by the Placement will supplement the Company's existing facilities and allow Atrum to complete significant milestones in 2017 at the Groundhog North Project. Planned activities to be funded by the Placement include delivering bulk samples to customers and further development of mining studies and permitting at Groundhog North. Working capital will also be provided to allow the commencement of anthracite exports from Atlantic Carbon Group PLC.

The issue price under the Placement represents an 8% discount to the last traded price of the Company's shares on ASX on 9 December 2016 and an 11% discount to the volume-weighted average price of the Company's shares traded on ASX over the 5 trading days up to, and including 9 December 2016.

Block Trade

On 12 December 2016, Atrum announced that it had been advised by Argonaut Equity Partners Pty Ltd ("AEP") acting in its capacity as Facility Agent and Security Trustee that it had acquired 24,000,000 shares in Atrum in accordance with the terms of a loan agreement between Russell Moran and a syndicate of lenders. AEP has today advised Atrum that these shares will be sold to institutional and sophisticated investors at $0.50 per share in a block trade executed as a Special Crossing on the ASX.

Press Article

The Company notes an article which appeared in The Australian on 13 December 2016 titled "Atrum co-founders lose control of shares" ("Article").

As Atrum is not a party to the settlements and other actions between AEP and Messrs D'Anna and Moran it cannot confirm the accuracy of the details of the Article beyond what was disclosed by the Company on 12 December 2016 and what is disclosed in this announcement.

Executive Chairman Comments

Commenting on the Placement, Executive Chairman, Mr Robert Bell stated, "We are pleased to announce that we have successfully obtained commitments to raise $13,500,000. We welcome the new investors that will join the register and thank those existing shareholders that have once again supported the Company.

We are also pleased that the major overhang associated with former directors D'Anna and Moran has now been resolved.

In 2017 we will progress development of Groundhog North, delivering samples to be tested by some of the world's largest steel mills and progress the permitting process at Groundhog North. We are also planning to begin export sales of ultra-high grade anthracite from Pennsylvanian producer Atlantic Carbon Group PLC. We are entering the seaborne market in an exciting time of rising coal and anthracite prices."

Conversion of Lenark Loan

Mr James Chisholm, Non-Executive Director of Atrum, has advised to Atrum that Lenark Pty Ltd (of which his spouse is a director) as trustee for Lenark Investment Trust, and its nominees will, subject to Atrum shareholder approval, convert $1,000,000 of the amounts owing by Atrum to Lenark Pty Ltd (and its nominees) under the Offset Loan Agreement entered into by the Company in June 2013 (and as modified in September 2013) (the Lenark Loan) into fully paid ordinary shares of the Company at the same price as the Placement, being $0.50.

The conversion of part of the Lenark Loan is to be considered by Atrum shareholders at an Extraordinary General Meeting which the Company expects to convene in the first quarter of 2017.

Other Matters

The Placement does not require shareholder approval and settlement is expected to take place on 21 December 2016. The shares to be issued in Atrum under the Placement are expected to commence trading on ASX on 23 December 2016.

An Appendix 3B will be lodged with ASX in relation to the issue of the shares in respect of the Placement. Further, Atrum will lodge a Cleansing Prospectus with ASIC and ASX under section 708A(11) of the Corporations Act 2001 (Cth) to remove any trading restrictions on the sale of the shares issued under the Placement.

The Company will provide updated details of its top 20 shareholders in the coming days.

Blackwood Capital acted as Lead Manager to the Placement and the Block Trade. Argonaut Capital Limited acted as underwriter to the Block Trade and Co-Manager to the Placement.

This announcement effectively lifts the suspension that the Company requested on 14 December 2016. Atrum is not aware of any reason why the ASX would not allow trading to recommence immediately.
To view the corporate presentation, please visit:
http://abnnewswire.net/lnk/R53S1JM7

About Atrum Coal NL:

Atrum Coal NL (ASX:ATU) is an emerging metallurgical coal explorer and developer.

The Company has a substantial coal position in British Columbia which, as a region boasts:

- Abundance of high quality PCI, coking and anthracite coals
- Well developed rail and port infrastructure with excess capacity
- Access to deep sea ports
- Competitive shipping distance to Asia
- Positive government stance on mining

The Company is building a quality portfolio of metallurgical coal assets suited to the Asian export market and the Board of Directors have a strong track record in identifying and developing world class coal assets in Australia and abroad.



Contact:

Robert W. Bell Executive Chairman M: +1-604-763-4180 E: rbell@atrumcoal.com

Theo Renard Company Secretary M: +61-430-205-889 E: trenard@atrumcoal.com

Nathan Ryan Investor Relations M: +61-420-582-887 E: nathan@atrumcoal.com