Mr. Slawek Smulewicz reports

MICROCOAL ANNOUNCES $3,000,000 PRIVATE PLACEMENT

Microcoal Technologies Inc. has arranged a non-brokered private placement of up to 10 million units of Microcoal at a price of 30 cents per unit for gross proceeds of up to $3-million.

Each unit consists of one common share of Microcoal and an equal number of five-year, non-listed, non-transferable warrants to purchase common shares exercisable at 45 cents per common share. The warrants shall have a forced-exercise provision if the common shares trade at 90 cents or higher for 10 consecutive trading days on the Canadian National Stock Exchange (or if the common shares are no longer listed on the CNSX, on such other stock exchange on which the common shares are listed). Finders' fees may be paid in accordance with CNSX policies.

Microcoal intends to use the proceeds of the private placement for general working capital expenses, international marketing expenses associated with activities in Asia, Europe and North America, and for repayment of debts. In the United States, Monarch Bay Securities has been retained as a placement agent.

We seek Safe Harbor.