Coalcorp Announces Prepayment of Convertible Debenture Issued by Formation Metals Inc.

NEWS RELEASE

COALCORP ANNOUNCES PREPAYMENT OF CONVERTIBLE DEBENTURE ISSUED BY FORMATION METALS INC.

TORONTO, March 14, 2011 – Coalcorp Mining Inc. (NEX-CCJ.H) (“Coalcorp”) announces that it has completed an agreement with Formation Metals Inc. (TSX-FCO) (“Formation”) for the prepayment by Formation of the 12% unsecured convertible debenture in the principal amount of $8 million issued by Formation to Coalcorp on May 6, 2010 (the “Debenture”). Currently, the principal amount outstanding on the debenture is $7 million, and Coalcorp holds 795,638 Formation common shares. Pursuant to this agreement, Coalcorp has surrendered the Debenture to Formation against payment of $9,333,333 in cash and 400,000 common shares in the capital of Formation (the “Formation Shares”). Coalcorp now holds 1,195,638 common shares in the capital of Formation.

Steven Cresswell, interim CEO of Coalcorp stated: “Our investment in Formation is precisely in keeping with Coalcorp’s new mandate, which is to identify and invest in mining, metallurgical and mineral companies that require interim capital to advance their projects to a stage where the investee company is able to access major financing from the debt or equity markets”.

Forward Looking Statements Disclaimer

Forward Looking Statements made in this news release may be forward-looking and therefore subject to various risks and uncertainties. Such statements can typically be identified by terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “possible”, “continue”, “objective” or other similar expressions concerning matters that are not historical facts. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Coalcorp does not undertake to update any forward-looking statements; such statements speak only as of the date made.

Neither the TSX Venture Exchange nor its Regulation Services Provided (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

Steven Cresswell Interim Chief Executive Officer 416-644-1217

AC/1234688.1