Coalspur Mines Limited - June 2011 Quarterly Report

PERTH, Western Australia, July 29, 2011 /CNW/ --
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS
AGENCIES

PERTH, Western Australia, July 29, 2011 /CNW/ - Coalspur Mines Limited ('Coalspur' or 'Company') (ASX: CPL) (TSX: CPT) is pleased to present its quarterly report for the period ending June
30, 2011.

Highlights:

    --  After an extensive selection process, commenced the Bankable
        Feasibility Study ('BFS') in early April 2011 on the Vista Coal
        Project ('Vista'). The BFS is being completed by a number of
        internationally recognized engineering firms and is on schedule
        for completion in December 2011.

    --  Coalspur was granted a historical Mine Permit and Processing
        Plant Approval which further de-risks the development of Vista
        and allows the Company to advance the permitting, public
        consultation and mine licensing required to start construction
        on Vista.

    --  Completed a public offering and private placement, both at
        $C1.85 per share, to North American and strategic investors to
        raise C$55.5 million. Haywood Securities Inc., BMO Capital
        Markets and RBC Capital Markets acted as lead agents for the
        public offering.

    --  Acquired additional coal leases from the Alberta Government
        which increased the Company's land position to over 33,200
        hectares.

    --  Increased the Company's total Measured and Indicated Resources
        to 1,078.7 Million tonnes ('Mt') of which 710.2Mt is in the
        Measured Coal Resource category.

    --  Completed additional drilling on the Vista South Coal Project
        ('Vista South') which confirmed additional mineralization
        beyond the existing resource model and indicated significant
        cumulative coal intercepts of up to 28m.

    --  The Company further strengthened its management team with the
        appointment of additional executives who will perform key
        operational and corporate functions.

    --  Initiated drilling programs which will include geotechnical and
        hydrological investigation and coal quality confirmation on
        Vista for the BFS and further exploration of the Northern Limb
        of the Entrance Syncline on Vista South.

Following the completion of the C$55.5 million placement, the Company
had cash reserves of approximately A$66 million with no debt. The
Company is sufficiently funded to complete the BFS, pursue exploration
and development activities and finalize all permitting required to
begin construction of Vista.

Importantly, going forward Coalspur has maintained 100% of the off-take
and marketing rights on Vista which will benefit the Company during
future negotiations with potential off-take and joint venture partners
as it progresses financing for the construction of Vista.

Going Forward

The Company has a significant amount of initiatives underway that are
focused on completing the BFS and furthering the delineation of Vista
South's potential. Activities in the coming months are expected to
include:

    --  Determining the ultimate pit design and productive capacity of
        Vista;

    --  Completing coal quality testing and updating the resource
        estimate on Vista South;

    --  Geotechnical drilling on Vista and additional exploration
        drilling on Vista South;

    --  Commencing project financing discussions with potential joint
        venture and off-take partners;

    --  Progressing studies focused on the underground longwall mining
        potential at Vista;

    --  Advancing discussions with potential rail and port providers;
        and

    --  Continuing to advance the permitting, public consultation and
        mine licensing on Vista.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful. The securities to
be offered have not been registered under the U.S. Securities Act of
1933, as amended, or any state securities laws and may not be offered
or sold in the United States absent registration or in accordance with
an applicable exemption from the registration requirements.

The full version of this news release is available on the Company's
website at www.coalspur.com and SEDAR at www.sedar.com.

Regulatory Disclosures

For further information regarding the Vista Coal Project and Vista South
Project, including a description of Coalspur's quality assurance
program, quality control measures, the geology, samples collected and
testing procedures in respect of the projects, please refer to the
technical report on the Vista Coal Project titled 'Vista Coal Project
Prefeasibility Study' dated January 25, 2011 and the technical report
on the Vista South Project titled 'Resource Estimate for the Vista
South Coal Property' dated December 15, 2010 , which are compliant with
National Instrument 43-101 - 'Standards of Disclosure for Mineral
Projects' ('NI 43-101') and are available for review on SEDAR at sedar.com.

Competent Person / Qualified Person Statements

The information in this news release that relates to Coal Resources is
based on information compiled by Mr. Robert J. Morris, who is a Member
of the Association of Professional Engineers, Geologists and
Geophysicists of Alberta.  Mr. Morris is a full-time employee of Moose
Mountain Technical Services, who are consultants to Coalspur. Mr.
Morris has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity he is undertaking to qualify as a 'Competent Person' as
defined in the 2004 Edition of the 'Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves' ('JORC Code'), and a 'Qualified Person' under NI 43-101. Mr. Morris consents to the
inclusion of such information in this news release in the form and
context in which it appears.

The information in this news release that relates to Coal Reserves is
based on information compiled by Mr. Robert Fong, who is a Member of
the Association of Professional Engineers, Geologists and Geophysicists
of Alberta. Mr. Fong is an associate of Moose Mountain Technical
Services, who are consultants to Coalspur. Mr. Fong has sufficient
experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity he is undertaking to
qualify as a 'Competent Person' as defined in the 2004 Edition of the
JORC Code, and a 'Qualified Person' under NI 43-101. Mr. Fong consents
to the inclusion of such information in this news release in the form
and context in which it appears.

All other scientific and technical information in this news release is
based on information compiled by Mr. Eugene Wusaty, who is a Member of
the Association of Professional Engineers and Geoscientists of Alberta.
Mr. Wusaty is a full-time employee of Coalspur.  Mr. Wusaty has
sufficient experience which is relevant to the style of mineralisation
and type of deposit under consideration and to the activity which he is
undertaking to qualify as a 'Competent Person' as defined in the JORC
Code, and a 'Qualified Person' under NI 43-101. Mr. Wusaty consents to
the inclusion of such information in this news release in the form and
context in which it appears.

Forward Looking Statements

This news release contains 'forward-looking information' that is based
on the Company's expectations, estimates and projections as of the date
on which the statements were made.  This forward-looking information
includes, among other things, statements with respect to the Public
Offering and Private Placement, the Company's permits and approvals,
business strategy, plans, development, objectives, performance,
outlook, growth, cash flow, projections, targets and expectations,
mineral reserves and resources, scoping, pre-feasibility, feasibility
and other studies, results of exploration and related expenses. 
Generally, this forward-looking information can be identified by the
use of forward-looking terminology such as 'expect', 'potential',
'outlook', 'anticipate', 'project', 'target', 'likely', 'believe',
'estimate', 'intend', 'may', 'would', 'could', 'should', 'scheduled',
'will', 'plan', 'forecast', 'evolve' and similar expressions. Persons
reading this news release are cautioned that such statements are only
predictions, and that the Company's actual future results or
performance may be materially different.

Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the Company's actual
results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking information.  Forward-looking information is developed
based on assumptions about such risks, uncertainties and other factors
set out herein, including but not limited to the risk factors set out
in the Company's Annual Information Form.  This list is not exhaustive
of the factors that may affect our forward-looking information.  These
and other factors should be considered carefully and readers should not
place undue reliance on such forward-looking information.

The Company disclaims any intent or obligation to update or revise any
forward-looking statements whether as a result of new information,
estimates or options, future events or results or otherwise, unless
required to do so by law.

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/July2011/29/c8298.html

Gene Wusaty 
Managing Director and CEO
Telephone: 1 403 975 7901