Dr. James Young reports

MICROCOAL TECHNOLOGIES TO RAISE UP TO US$10 MILLION BY WAY OF A NON-BROKERED PRIVATE PLACEMENT

Microcoal Technologies Inc. intends to carry out a non-brokered private placement of up to 50 million units of the company at 20 cents per unit for aggregate gross proceeds of up to $10-million (U.S.).

Each unit will comprise one common share of the company and one common share purchase warrant. Each warrant will entitle the holder thereof to acquire one common share at an exercise price of 30 U.S. cents for up to 12 months following the date of issuance, subject to the terms thereof. Closing of the private placement may occur in one or more tranches and is subject to the receipt of all necessary approvals, including the approval of the Canadian Securities Exchange.

The company intends to use the net proceeds from the private placement to advance construction on the company's first commercial facility in Indonesia for upgrading low-rank coals, and for general corporate purposes and working capital. The company may pay a finder's fee to one or more arm's-length parties in connection with the private placement, in accordance with the policies of the CSE. All units, common shares and warrants issued under the private placement will be subject to a four-month hold period from the closing date(s), in accordance with the rules and policies of the CSE, and applicable Canadian securities laws and such other restrictions as may apply under foreign securities laws.

We seek Safe Harbor.