Colonial Coal International Corp. (TSX VENTURE:CAD) (the "Corporation" or
"Colonial Coal") announces that its wholly-owned subsidiary, Watson Island
Development Corporation ("WatCo"), has retained McMillan LLP to advance
litigation in the British Columbia Supreme Court against the City of Prince
Rupert (the "City") to enforce WatCo's rights in connection with the acquisition
of Watson Island.


A Certificate of Pending litigation has also been filed to prevent the land from
being sold to others while the litigation is outstanding.


WatCo has been working to purchase Watson Island for the last several years and
has been paying the City between $75,000 and $90,000 per month under the terms
of an Exclusivity Agreement.


In furtherance of the Exclusivity Agreement, the City accepted a conditional
offer to purchase for $5 million in 2012 which provided for a definitive
agreement to be entered into upon settlement of claims by Sun Wave Forest
Products Ltd. relating to the title to Watson Island and certain asset located
thereon.


The City settled with Sun Wave in August, 2013 and the parties subsequently
negotiated until February of this year to settle the terms of a definitive
agreement.


WatCo eventually accepted all of the terms of the definitive agreement proposed
by City and the City then advised that it would not proceed with the sale of
Watson Island to WatCo. 


WatCo Director and Company President, David Austin, stated that he was extremely
disappointed at the sudden change in direction by the City's Mayor and Council,
precipitating the need for WatCo to commence litigation. "WatCo continues to be
committed to the people of Prince Rupert, and to the purchase of Watson Island
and the significant remediation and redevelopment work required to ensure that
this important local asset is productive again and contributing to local
employment and the tax base in Prince Rupert," said Austin, noting that, "We did
not take the step of commencing litigation lightly, but we decided we needed to
do so to protect our right to complete this transaction."


WatCo Chief Executive Officer, Perry Braun, noted that "WatCo has paid in good
faith millions of dollars to the City over the past two years and now we must
take legal steps to protect our shareholder's interests."


WatCo was originally formed by a unique collaboration of the Lax Kw'alaams and
Metlakatla First Nations with the Corporation to purchase the former Skeena
Cellulose pulp mill lands near Prince Rupert, B.C., and redevelop the property
on Watson Island into a seaport terminal and industrial park.


About Colonial Coal International Corp.

Colonial Coal is a publicly traded pure-play coking coal corporation in British
Columbia. The northeast Coal Block of British Columbia, within which our
Corporation's projects are located, hosts a number of proven deposits and has
been the subject of M&A activities by Xstrata, Walter Energy, Anglo-American and
others.


Additional information can be found on the Corporation's website www.ccoal.ca or
by viewing the Corporation's filings at www.sedar.com.


Forward-Looking Information

Information set forth in this news release may involve forward-looking
statements. Forward-looking statements are statements that relate to future, not
past, events. In this context, forward-looking statements often address a
company's expected future business and financial performance, and often contain
words such as "anticipate", "believe", "plan", "estimate", "expect", and
"intend", statements that an action or event "may", "might", "could", "should",
or "will" be taken or occur, or other similar expressions. By their nature,
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause our actual results, performance or achievements,
or other future events, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Such factors include, among others, the following risks: risks
associated with marketing and sale of securities; the need for additional
financing; reliance on key personnel; the potential for conflicts of interest
among certain officers or directors with certain other projects; and the
volatility of common share price and volume. Forward-looking statements are made
based on management's beliefs, estimates and opinions on the date that
statements are made and except as required by law, the Corporation undertakes no
obligation to update forward-looking statements if these beliefs, estimates and
opinions or other circumstances should change. Investors are cautioned against
attributing undue certainty to forward-looking statements.


THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE
EXPECTATIONS OF THE CORPORATION AS OF THE DATE OF THIS NEWS RELEASE AND,
ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE
UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS
INFORMATION AS OF ANY OTHER DATE. WHILE THE CORPORATION MAY ELECT TO, IT DOES
NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS
REQUIRED IN ACCORDANCE WITH APPLICABLE SECURITIES LEGISLATION.


Neither the 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Colonial Coal International Corp.
Perry Braun
604.568.4962
pbraun@ccoal.ca


Colonial Coal International Corp.
Shane Austin
604.568.4962
saustin@ccoal.ca
www.ccoal.ca

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