Mr. Perry Braun reports

COLONIAL ANNOUNCES RECEIPT OF WORK PERMIT FOR ITS FLATBED PROPERTY

The B.C. Ministry of Energy and Mines has issued a work permit to Colonial Coal International Corp. to conduct phase 1 of its notice of work application on its Flatbed property. This phase encompasses a total of 48 drill holes and 12.2 kilometres of access trail. The permit is valid until Oct. 30, 2018. MEM is proceeding with its review of phase 2 of the NoW application.

The Flatbed property is composed of seven coal licences that cover a total of 9,077 hectares. Colonial Coal has also applied for three additional coal licences covering an area of 2,400 hectares with respect to this property.

The Flatbed property borders portions of the Quintette (Teck), Trend (Peace River Coal) and Duke Mountain (Teck) properties. The company previously announced that, based upon a review of various data from in and around the Flatbed property, the company's geological consultant identified three targets worthy of future exploration aimed at the location of underground minable metallurgical coal deposits for seams targeted at depths between 200 metres and 600 metres.

The company is reviewing its options to finance exploration of the Flatbed property, including the possibility of joint venturing the property.

This press release has been reviewed by John Perry, a director of the company and a qualified person as defined in National Instrument 43-101.

We seek Safe Harbor.