Coal

[mhlld]

Western Canadian Coal Corp. records fourth quarter operating profit
Tuesday June 21, 9:00 am ET


TSX: WTN and AIM: WTN
VANCOUVER, June 21 /CNW/ - Western Canadian Coal Corp. (TSX: WTN and AIM: WTN) ("WCCC" or the "Company") is pleased to provide the following corporate and operating update including a summary of results for the three and twelve months ended March 31, 2005:

Fourth Quarter Highlights:

- The Company earned an operating profit of C$1 million for the quarter
ended March 31, 2005 on the sale of 152,000 tonnes of pulverized coal
injection ("PCI") coal at an average price of C$74.65
(US$60.63 per tonne).

- The Company settled pricing for its ultra low-volatile PCI for the
year commencing April 1 2005 at slightly more than US$100 per tonne,
an increase of US$40 per tonne on the average price per tonne recorded
in the first quarter.

- WCCC has made application to the BC Government to amend its
Dillon Mine annual production limit from 240,000 tonnes per year to a
monthly rate of 80,000 tonnes. Subject to receipt of the Dillon Mine
amendment, the Company would expect to produce and sell approximately
800,000 tonnes of ultra low-volatile PCI coal for its first fully
operational fiscal year ended March 31, 2006.

- Subsequent to quarter-end, WCCC received a BC Government Mines Act
permit for its Wolverine project and immediately began construction of
a 2.4 million tonne per year coal preparation plant, rail load-out and
related facilities that are expected to cost C$180 million. The permit
allows for production of 1.6 million tonnes annually and in May the
Company made application to amend the permit to 2.4 million tonnes.
The project is being engineered for 3 million tonnes per annum.

- In February, WCCC raised C$110.3 million in net proceeds through a
private placement of 18,852,460 units at a price of C$6.10 per unit.
As at March 31, 2005, the Company had a working capital surplus of
C$119.4 million compared to a working capital deficit of C$1.3 million
as at March 31, 2004.

- Subsequent to quarter-end, on April 19, 2005, the Company's shares
commenced trading on the Toronto Stock Exchange ("TSX") under the
symbol WTN.


Operations

The Burnt River Property:


The Burnt River property, within the Company's Brazion Group of properties, incorporates the Dillon Mine and the proposed Brule mine project and is located between Chetwynd and Tumbler Ridge in northeastern British Columbia.
Full-scale production from the Company's Dillon Mine during the quarter produced approximately 284,000 tonnes, of which 152,000 tonnes was sold for aggregate sales revenue of C$11.3 million.

The Dillon Mine produces ultra low-volatile PCI coal. The Dillon product is mined and crushed and requires no washing prior to shipment. The Company has made application to the BC Government to amend its annual production limit from 240,000 tonnes per calendar year to a monthly rate of 80,000 tonnes and a decision is expected shortly.

During the quarter, the Company submitted the Brule Project Description report to the BC Environmental Assessment Office. The application for the Environmental Assessment (EA) Certificate is expected to be submitted by the third quarter of 2005. Should this certificate be granted, the Company envisages production of PCI increasing to an annual rate of 2.0 million tonnes per year by 2009.

Reflecting the strong demand for ultra low-volatile PCI and the premium quality of WCCC's product, the Company was successful in negotiating prices of in excess of US$100 per tonne for the year commencing April 1, 2005, an increase of US$40 per tonne over the fourth quarter's prices. Cash flow generated from these sales will be directed toward the development of Wolverine.

Customer response to the trial shipments has been positive and WCCC confirmed POSCO's intention to proceed in finalizing one of two long-term purchase and sale agreements for the supply of approximately 2.8 million tonnes of ultra low-volatile PCI coal over six years. Coal prices under the agreement would be negotiated annually prior to the start of each contract year. Trial PCI shipments are continuing to several other important steel mills around the world.

The Wolverine Group:

The Wolverine Group of properties covers the Perry Creek, EB and Hermann deposits and is located 23 km west of Tumbler Ridge, BC. In January, the Company received its EA certificate from the BC Government enabling the development of this group of properties to proceed. The EA Certificate covers production of 1.6 million tonnes of clean metallurgical coal per annum over a projected 11-year period. Subsequent to quarter end, the Company received its BC Government Mines Act permit for Wolverine and immediately began construction of the C$180 million, 2.4 million tonne per year, coal preparation plant, rail load-out and related facilities. In May 2005, application was made to amend the permit to allow the Company to increase the Wolverine annual coal production from 1.6 million tonnes to 2.4 million tonnes.

Production from Wolverine will be hard coking coal, the international price for which in the current financial year has been settled at around US$120 per tonne.

Drilling of the Hermann deposit will be carried out in the current year with a view to bringing on this mining production to supplement that of Perry Creek and enabling the Company to achieve its objective of producing 3 million tonnes of metallurgical coal per annum at Wolverine, and 5 million tonnes company-wide by 2009.

WCCC and NEMI Joint Venture:

In March 2005, WCCC and NEMI Northern Energy and Mining Inc. ("NEMI") completed the documentation to formalize the Belcourt Saxon Coal Limited Partnership. The 50-50 joint venture was formed to further explore and develop the Saxon and Belcourt coal properties, also located in northeastern British Columbia. The companies have committed a combined C$20 million to advance the properties to feasibility. WCCC considers the Belcourt Saxon joint venture as a vehicle through which it will continue to expand its production beyond 5 million tonnes per annum. Initial studies center on determining the economics for the development of a series of large scale mines. The pre-feasibility study is expected to be complete by the third quarter of 2006.



Financial Summary - unaudited:



(In thousands of Canadian dollars, March 31, 2004
except per share data) March 31, 2005 (As restated)
-------------------------------------------------------------------------
Cash $ 115,186 $ 97
Other current 7,041 151
Inventory 8,831 -
Total Assets 149,802 2,042

Current liabilities 11,682 1,584
Long-term liabilities 966 -
Shareholders' equity 137,154 144


Three months Twelve months
ending ended
March 31, 2005 March 31, 2005
-------------------------------------------------------------------------
Revenue $ 11,347 $ 11,347
Cost of goods sold 10,309 10,772
Operating profit 1,038 575
Other expenses 4,388 11,547
Net loss (3,350) (10,972)

Loss per share, basic and fully diluted $ (0.05) $ (0.22)
-------------------------------------------------------------------------


Included in the above balances and results are the Company's
proportionate share of its interest in and results from the Belcourt Saxon
joint venture, as follows:

(In thousands of Canadian dollars) March 31, 2005
--------------------------------------------------------
Cash $ 4,829
Due from the Company 3,000
Due from NEMI 2,000
Total Assets 10,908

Current liabilities 56
Equity 10,852

Three months and year
ended March 31, 2005
--------------------------------------------------------
Expenses $ (74)
--------------------------------------------------------

News Release

This news release is prepared as at June 21, 2005 and should be read in
conjunction with the Company's 2004 Annual Report and the audited financial
statements and notes contained therein, as well as the interim unaudited
financial statement and MD&A's for the three, six and nine months ended
June 30, September 30, and December 31, 2004. This news release does not
constitute Management's Discussion and Analysis as contemplated by relevant
securities rules. Western Canadian Coal Corp.'s 2005 Annual Report and MD&A
will be released at a later date in conjunction with its audited financial
statements for the year ended March 31, 2005 and will be available on SEDAR at
www.sedar.com.

Revenue

The fourth quarter of the fiscal year ended March 31, 2005 marked the
commencement of commercial sales for the Company with the first ship loading
at Ridley Terminals on January 13, 2005. The Company realized production of
approximately 284,000 tonnes and FOB sales of 152,000 tonnes for total
revenues of C$11.3 million. The average selling price realized on the
four trial shipments made during this period was C$74.66 or US $60.93 at an
average foreign exchange rate of 1.2253. Selling prices during the quarter
reflect commitments made by the Company prior to commercial production based
on spot prices of PCI coal.

Cost of goods sold

Cost of goods sold during the three months ended totaled C$10.3 million
or C$67.83 per tonne with cost of goods sold for the year ended March 31, 2005
being slightly higher at C$10.8 million or C$70.88 per tonne. Cost of goods
sold include cost of product, transportation and other, and depletion,
amortization and accretion charges as presented in the table below:

(In thousands of 4th Fiscal
Canadian dollars) quarter 2005 $/tonne Year 2005 $/tonne
-------------------------------------------------------------------------

Cost of product $ 3,258 $ 21.44 $ 3,258 $ 21.44
Transportation and other 6,140 40.40 6,140 40.40
Depletion, amortization
and accretion 911 6.02 1,374 9.04

Total cost of goods sold $ 10,309 $ 67.83 $ 10,772 $ 70.88
-------------------------------------------------------------------------


Operating profit

Operating profit for the fourth quarter totaled C$1.0 million or 9.1% of
fourth quarter revenues and C$0.6 million or 5.0% of revenues for the year
ended March 31, 2005.

Other expenses

Other expenses for the quarter and year ended March 31, 2005 amounted to
C$4.4 million and C$11.5 million, respectively. Other expenses include
general, administration and selling costs, coal exploration expenses and other
expenses/(income) as presented in the table below:


4th Fiscal
(In thousands of Canadian dollars) quarter 2005 Year 2005
-------------------------------------------------------------------------

General, administration and selling $ 2,421 $ 6,703
Coal exploration (see change in
accounting policy below) 2,148 5,242
Other expense (income) (181) (398)

Total other expenses $ 4,388 $ 11,547
-------------------------------------------------------------------------


General, administration and selling costs include non-cash charges for
stock-based compensation expense of C$0.6 million and C$1.9 million for the
quarter and year ended March 31, 2005, respectively.

Change in accounting policy

Accounting for exploration costs within the mining industry in Canada
varies. Junior mining companies generally capitalize all exploration costs,
while more mature companies typically expense such costs as incurred. With the
commencement of commercial production at Dillon on December 1, 2004, the
Company transitioned from a development stage company into a producing mining
company. Accordingly, the Company changed its accounting policy on exploration
costs to that more commonly used by operating mining companies, effective
April 1, 2004, and applied the new policy retroactively.
Exploration costs are charged to earnings in the period in which they are
incurred, except where these costs relate to specific properties for which
economically recoverable reserves have been established, in which case they
are capitalized. Upon commencement of commercial production, these capitalized
costs are charged to operations on a unit of production method based upon the
proven and probable coal reserves to which they relate. If the coal properties
are abandoned or otherwise impaired, the related capitalized costs are charged
to operations in the period in which the property becomes impaired or is
abandoned.

Net loss

Net loss for the quarter and year ended March 31, 2005 was C$3.4 million
and C$11.0 million, respectively. The losses reflect operating profits of
C$1.0 million and C$0.6 million for the quarter and year ended March 31, 2005,
respectively, offset by other expense of $4.4 million and $11.5 million,
respectively, as described above.

Forward-Looking Information

This release may contain forward-looking statements that may involve
risks and uncertainties. Such statements relate to the Company's expectations,
intentions, plans and beliefs. As a result, actual future events or results
could differ materially from those suggested by the forward-looking
statements. Readers are referred to the documents filed by the Company on
SEDAR. Such risk factors include, but are not limited to, changes in commodity
prices; strengths of various economies; the effects of competition and pricing
pressures; the oversupply of, or lack of demand for, the Company's products;
currency and interest rate fluctuations; various events which could disrupt
operations; the Company's ability to obtain additional funding on favourable
terms, if at all; and the Company's ability to anticipate and manage the
foregoing factors and risks. Additionally, statements related to the quantity
or magnitude of coal deposits are deemed to be forward-looking statements. The
reliability of such information is affected by, among other things,
uncertainties involving geology of coal deposits; uncertainties of estimates
of their size or composition; uncertainties of projections related to costs of
production; the possibilities in delays in mining activities; changes in plans
with respect to exploration, development projects or capital expenditures; and
various other risks including those related to health, safety and
environmental matters.



WESTERN CANADIAN COAL CORP.

"Gary K. Livingstone"

President and Chief Executive Officer


For further information

please contact: Gary K. Livingstone, President & CEO or Fausto Taddei, CFO & Corporate Secretary, Western Canadian Coal Corp., 900 - 580 Hornby Street, Vancouver, B.C. V6C 3B6, Phone [phone], Fax [phone], Email [e-mail], www.westerncoal.com

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