An anonymous dissident shareholder reports

EXECUTIVE CHAIRMAN OF FORBES AND MANHATTAN COAL CORP. DISALLOWS PROXY VOTES SUPPORTING THE CONCERNED SHAREHOLDERS AT ANNUAL GENERAL MEETING

Forbes and Manhattan Coal Corp. held its annual general meeting Sept. 17, 2012, and the executive chairman, Stan Bharti, disallowed proxy votes that supported the concerned shareholders' board nominees by an overwhelming majority.

As a result of the technical invalidation of proxy votes which the concerned shareholders (Resource Capital Fund V LP, Terrafirma Securities Holdings LLC. and Skye Alba Pty. Ltd.) believe is improper, management's slate of directors was purportedly elected. This means the key issues of a lack of transparency and poor corporate governance at the company will not be addressed. It is disappointing the executive chairman failed to listen to the voice of the shareholders, and this has resulted in the purported election of an entrenched captive board.

The concerned shareholders will now consider all possible options to challenge the actions of the executive chairman and to ensure:

• A capable board with relevant industry and country experience;
• Strong, independent governance to restore shareholder value; the board must put corporate governance into action by actually being independent, and not just talking about it;
• Proper oversight; a board must be elected that will ensure management are working for the benefit of the shareholders;
• Your investment is protected; the board must be aligned with your interests as investors in the business.

We seek Safe Harbor.