Forbes Coal Reports Election of Management Proposed Slate of Directors

TORONTO, ONTARIO -- (Marketwire) -- 09/17/12 -- Forbes & Manhattan Coal Corp. (TSX: FMC)(JSE: FMC) ("Forbes Coal" or the "Company") is pleased to announce the election of the slate of directors proposed by the management of the Company to serve Forbes Coal until their successors are elected or appointed. The slate of directors elected at today's Annual General Meeting is:

                               Stephan Theron
                                 Stan Bharti
                                 David Gower
                                 David Stein
                                 Grant Davey
                                Ryan Bennett
                               Bernard Wilson

The Company took a number of steps to ensure that the Meeting was conducted in a manner that was fair to all shareholders. In particular, the Chairman of the Meeting was advised by independent counsel, the deadline for submitting proxies was extended to the start of the Meeting and the validity of all proxies were assessed against the same standard, the Proxy Protocol of the Securities Transfer Association of Canada. This was agreed to by Resource Fund Capital V L.P and Forbes Coal in advance of the vote.

In addition, The Board also agreed to formally adopt all of the Concerned Shareholder's advisory resolutions, including the votes cast by the management proxy holders. These non-binding advisory resolutions are designed to protect all shareholders:

--  For the majority of the Board of Directors to be comprised of
    independent directors;

--  For the independent directors to review the existing compensation of all
    directors; and

--  For Forbes Coal to adopt an individual director election process by
    shareholder majority at the next annual general meeting.

Historically, Forbes Coal has always had independent directors approve compensation paid to all directors. The Board had previously undertaken to adopt an individual election process for the next annual meeting. The Company believes that formally adopting these resolutions is in the interests of all shareholders and the Company had these resolutions approved at the AGM on a simple show of hands.

Stan Bharti, Chairman of the Board of Forbes Coal, said: "We welcome Bernard Wilson to the Board and look forward to his experience on Canadian corporate governance-related matters. We are also pleased to retain the continued support and direction of Ryan Bennett and Resource Capital Fund V L.P."

Stephan Theron, President and CEO, said: "On behalf of the entire board and management team, I would like to thank the members of the board of Forbes Coal for their guidance and support over the past year. As evidenced by the fiscal second quarter 2013 production results released this morning, Forbes Coal continues to make impressive strides towards achieving our growth objectives. We remain confident in our ability to deliver profitable growth to our shareholders in the near term."

About Forbes Coal

Forbes Coal is a growing coal producer in southern Africa. It holds a majority interest in two operating mines through its 100% interest in Forbes Coal (Pty) Ltd., a South African company ("Forbes Coal Dundee") which has a 70% interest in Zinoju Coal (Pty) Ltd. ("Zinoju"). Zinoju holds a 100% interest in the Magdalena bituminous mine and the Aviemore anthracite mine in South Africa (collectively, "the Dundee Properties"). The mines have a substantial resource base and each mine has a projected life span in excess of 20 years. Forbes Coal is in the process of increasing production at both mines existing infrastructure and capacity. The Company has in-place transportation infrastructure allowing its coal to reach both export corridors and the growing domestic coal market. Forbes Coal has a strong balance sheet and an experienced coal-focused management team.

Cautionary Notes

The ability of the Company to increase production amounts has not been the subject of a feasibility study and there is no certainty that the proposed expansion will be economically feasible.

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the anticipated production results with respect to the Dundee Properties, future financial or operating performance of the Company and its projects, statements regarding the anticipated improvements in logistical support and anticipated improvements in sales, statements made with respect to prospects for the business of the Company, requirements for additional capital, government regulation of the mineral exploration industry, environmental risks, acquisition of mining licences, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, foreign operations, political and social uncertainties; a history of operating losses; delay or failure to receive board or regulatory approvals; timing and availability of external financing on acceptable terms; not realizing on the potential benefits of the proposed transaction; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral products; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Contacts:

Forbes & Manhattan Coal Corp.

Stephan Theron

President and Chief Executive Officer

+1 (416) 861-5912
stheron@forbescoal.com


Forbes & Manhattan Coal Corp.

Colinda Parent

VP Corporate Development

+1 (416) 861-5811
cparent@forbesmanhattan.com