port access deal done

Coalspur Secures 14 Year Port Allocation for up to 8.5Mtpa with Ridley Terminals
Highlights:

Coalspur concludes port agreement with Ridley Terminals for 6.0Mtpa throughput allocation at Prince Rupert, British Columbia, Canada
Agreement includes option for additional 2.5Mtpa for a total of 8.5Mtpa
14 year term commences in January 2015 with option for an additional 7 years
Port allocation significantly de-risks development of Vista and secures port requirements for majority of production on Vista
PERTH, Western Australia, Oct. 27, 2011 /CNW/ - Coalspur Mines Limited ("Coalspur" or "Company") (ASX: CPL), (TSX: CPT) is pleased to announce that it has reached an agreement with Ridley Terminals Inc. ("Ridley Terminals") on terms for the shipment of export thermal coal from Coalspur's Vista Coal Project ("Vista"). The agreement entitles Coalspur to up to 6.0 million tonnes per year ("Mtpa") of port allocation with an option for an additional 2.5Mtpa and has been structured to reflect the expected production profile of Vista. The agreement has a 14-year term that commences in January 2015 and includes an option to extend the term for an additional seven years.

Commenting on the port agreement with Ridley Terminals, Gene Wusaty, Managing Director and CEO, said "We are exceptionally pleased to have concluded this landmark agreement. It represents a major milestone in the development of Vista as it secures port allocation for the majority of the expected production until 2035. The agreement provides Coalspur committed access to the thermal coal markets in Asia and significantly de-risks the development of Vista as it advances towards the construction phase."

Ridley Terminals

Ridley Terminals is a Canadian Federal Crown Corporation that is located in Prince Rupert, British Columbia. Ridley Terminals is the most northern deepwater port in North America and has the ability to handle capesize vessels up to 250,000 deadweight tonnage. Currently handling capacity is 12 million tonnes which is undergoing an expansion to 24 million tonnes. The facility is serviced by the Canadian National Railroad and is well positioned to handle coals from a variety of North American origins.

Bud Smith, Chairman of Ridley Terminals, said, "This agreement represents a win-win as it facilitates Coalspur's strategy to become the largest export thermal coal producer in Canada and positions Ridley Terminals to become a major gateway for Canadian thermal coal to the global markets."

About Coalspur

Coalspur Mines Limited ("Coalspur" or "Company") is a coal exploration and development company with over 33,200 hectares of coal exploration leases located within the Hinton region of Alberta, Canada. Coalspur's flagship coal project is the Vista Coal Project ("Vista") which has the potential to be the largest export thermal coal mine in Canada.

Vista covers approximately 10,000 hectares and contains over 20km of continuous gently dipping strike length and a Measured and Indicated Coal Resource base of 985 million tonnes of low sulphur, high volatile bituminous, export quality thermal coal. Vista is able to leverage off already established first world infrastructure, with CN Rail facilities located adjacent to Vista that are substantially underutilised and provide a rail track suitable for the transport of coal to deepwater ports that already service the growing demand from the Asian Pacific Rim countries, including China, Japan and Korea.

The Company is currently undertaking a Bankable Feasibility Study ("BFS") on Vista which will become the blueprint for the largest export thermal coal mine in Canada. A Pre-Feasibility Study was completed in December 2010 which defined an initial marketable coal reserve of over 260 million tonnes ("Mt") from a recoverable coal reserve of approximately 522Mt. As part of the ongoing BFS, the marketable and recoverable coal reserves are being re-evaluated and will incorporate the recently completed enhanced mine plan, increased clean coal yield and the optimization of mine infrastructure design.

The BFS is being completed by a group of internationally recognized engineering firms and is progressing on schedule for publication in early 2012 following completion at the end of 2011. The BFS is the final technical study before construction commences at Vista and is focused on an enhanced mine plan, operating and capital cost assessments and infrastructure, transport and logistics arrangements.


JORC / NI 43-101 Coal Resources
Measured Indicated Measured & Indicated Inferred
(Mt) (Mt) (Mt) (Mt)
Vista Coal Project 658.7 326.7 985.4 304.6
Vista South Coal Project 51.5 41.9 93.3 75.0
Coalspur Total Resource 710.2 368.6 1,078.7 379.6
In addition the Company holds leases directly south of Vista named the Vista South Coal Project ("Vista South"). Vista South covers over 23,000 hectares extends for over 25km on each of the northern and southern limb of the Entrance Syncline which the company believes has the potential to host a significant coal resource.

Coalspur has offices in Calgary and Hinton in Canada as well as in Australia. The Company's goal is to develop a major new thermal export coal region in Alberta to meet growing energy demands worldwide and in particular of the insatiable Asia Pacific market. The Company is dual listed on the Toronto Stock Exchange ("TSX") under the symbol "CPT" and on the Australian Securities Exchange ("ASX") under the symbol "CPL".