FORBES & MANHATTAN COAL CORP - Forbes - announces new board composition

Forbes - announces new board composition

   


Forbes & Manhattan Coal Corp.
(Registration number: 002116278)
(External company registration number: 2011/011661/10)
Share code on the Toronto Stock Exchange: FMC
Share code on the JSE Limited: FMC
ISIN: CA3451171050
(“Forbes Coal” or “the Company”)


FORBES & MANHATTAN COAL ANNOUNCES NEW BOARD COMPOSITION

TORONTO, ONTARIO – October 16, 2012 : Forbes & Manhattan Coal Corp. (TSX:
FMC) (JSE: FMC) (“Forbes Coal” or the “Company”) announced today that it has
implemented an amicable reconstitution of its board of directors following discussions between
the Company and Resource Capital Fund V L.P. (“RCF”), one of Forbes Coal’s major
shareholders.

As a result of these discussions, Forbes Coal’s board has been reconstituted, as follows: Mr.
Stephan Theron, Mr. Stan Bharti, Mr. Bernard Wilson, Mr. Ryan Bennett, Mr. Mike Price, Mr.
John Dreyer and Mr. Craig Wiggill.

Mr. Stephan Theron, President and CEO of the Company said: “The new board is excited about
the opportunities that lie ahead for Forbes Coal and the Company remains focused on executing
its strategy of being a leading emerging coal producer in Southern Africa. The Company
remains focused on creating shareholder value and executing on its operating and acquisition
plans.

As part of the board reconstitution, Mr. David Stein, Mr. David Gower and Mr. Grant Davey
have resigned their board positions effective today. Mr. Theron said: “On behalf of Forbes Coal
and all its shareholders, the new board wishes to thank Mr. Stein, Mr. Gower and Mr. Davey for
their service to the Company and its shareholders.”

Biographies:

Mr. Stephan Theron (CEO, Executive Director): Mr. Theron has over thirteen years of
extensive financial management, project finance and equity analysis experience in the mining,
energy and infrastructure sectors. Prior to joining Forbes Coal in November 2009, Mr. Theron
was Sector Head, Materials and Energy at an independent investment research firm with a focus
on emerging markets from September 2007 to October 2009. He also worked on various capital
projects in Southern Africa for AMEC PLC from January 2002 to March 2004 and AMEC PLC
from June 2004 to September 2007 in North America and Europe. Mr. Theron is a Certified
General Accountant and has a Bachelor of Commerce degree from the University of
Johannesburg.

Mr. Stan Bharti (Non-Executive Director): Mr. Bharti has over 25 years of experience in
operations, public markets and finance. Over the last ten years Mr. Bharti has been involved in
acquiring, restructuring and financing various mineral companies. He is a Professional Mining
Engineer and holds a Masters Degree in Engineering from Moscow, Russia and University of
London, England. From 2002 to April 2006, Mr. Bharti was a director and past president of
Desert Sun Mining Corp. (which was acquired by Yamana Gold Inc. in 2006). Mr. Bharti is
currently the President of Forbes & Manhattan, Inc. In addition, Mr. Bharti is a director of
several public and private companies.

Mr. Ryan Bennett (Non-Executive Director): Mr. Bennett is a Senior Partner with Resource
Capital Funds, a private equity group of funds that invests in development and growth stage
mining companies. From 1992 to 1998, Mr. Bennett held various positions within NM
Rothschild & Sons in Denver and Rothschild Australia Limited in Sydney, where he was
principally responsible for the technical analysis of mining projects seeking debt finance. Prior to
joining Rothschilds, he worked as a geologist for the United States Bureau of Mines and a
private exploration company focused on Alaska, as well as a mining engineering consultant for
Caterpillar. Mr. Bennett has a Masters of Science degree in Mining Engineering from the
Colorado School of Mines and a Bachelors of Science degree in Geological Engineering and
Mathematics from the University of Wisconsin – Madison.

Mr. John Dreyer (Non-Executive Director): Mr. Dreyer is a qualified South African lawyer,
previously MD of Shell South Africa, CEO of Tavistock Coal and executive director of Anglo
American Platinum. He served as chairman of ASX listed Firestone Energy until 2011. Mr.
Dreyer currently serves on the board of ASX listed Cobar Consolidated Resources where he also
serves on the audit committee.

Mr. Craig Wiggill (Non-Executive Director): Mr. Wiggill has held management, executive and
directorship positions on several international mining and marketing companies in the coal sector
and, as CEO of Coal Americas at Anglo American plc. was responsible for all of that company’s
coal activities in North and South America. He was previously Managing Director of Anglo Coal
Marketing Ltd from 2000 to 2004 and is an engineer by profession (B.Sc. Engineering,
University of the Witwatersrand, 1984).

Mr. Bernard Wilson (Non-Executive Director): Mr. Bernard Wilson is a senior financial
professional with a wide array of working relationships with business executives in Canada, the
United States and internationally. Mr. Wilson serves as an advisor in corporate finance and
investment banking and has extensive experience in major financial restructurings and
international trade and commerce issues. Some of Mr. Wilson’s more notable leadership roles
include serving as the Chairman of the Canadian Chamber of Commerce, the largest Canadian
business organization with 175,000 members, Chairman of the Canadian Council for
International Business, Chairman of the International Chamber of Commerce, as a member of
the Canada/US Trade Committee and Chairman Founders Board of the Institute of Corporate
Directors.

Mr. Mike Price (Non-Executive Director): Mr Price has more than 35 years experience in
mining and mining finance. He has BSc and Phd qualifications in mining engineering from
University College Cardiff, UK, a Mine Managers Certificate of Competency (Coal Mines)
South Africa and he is a European Engineer (FEANI) and Chartered Mining Engineer (CEng).
After working for BP Coal, BP Minerals and BP Exploration in various mine management and
business development roles Mr Price moved into mining finance with NM Rothschild & Sons,
Societe Generale and Barclays Capital where he structured, arranged and advised on the
financing of mining projects worldwide. Mr Price is now a Non-Executive Director of several
mining companies and he is an independent adviser on mining finance as well as the London
Representative of Resource Capital Funds.


About Forbes Coal

Forbes Coal is a growing coal producer in southern Africa. It holds a majority interest in two
operating mines through its 100% interest in Slater Coal (Pty) Ltd., a South African company
("Slater Coal") which has a 70% interest in Zinoju Coal (Pty) Ltd. ("Zinoju"). Zinoju holds a
100% interest in the Magdalena bituminous mine and the Aviemore anthracite mine in South
Africa (collectively, “the Slater Properties”). The mines have a substantial resource base and
each mine has a projected life span in excess of 20 years. Forbes Coal is in the process of
increasing production at both mines and looks to triple production from 2010 levels in the next
three years using existing infrastructure and capacity. The Company has in-place transportation
infrastructure allowing its coal to reach both export corridors and the growing domestic coal
market. Forbes Coal has a strong balance sheet and an experienced coal-focused management
team.

Please refer to the Company's NI 43-101 compliant technical report on the Slater Properties
dated March 1, 2011 entitled "Technical Report on Slater Coal and Subsidiaries, KwaZulu-Natal
Province, South Africa", available on the SEDAR profile of the Company at www.sedar.com.
Additional information is available at www.forbescoal.com.

Cautionary Notes

Johan Odendaal, B.Sc.(Geol.), B.Sc.(Hons)(Min. Econ.), M.Sc. (Min. Eng.), a director of
Minxcon and an independent Qualified Person, as defined in National Instrument 43-101 has
reviewed and approved the scientific and technical information contained in this release.

The ability of the Company to increase production amounts has not been the subject of a
feasibility study and there is no certainty that the proposed expansion will be economically
feasible.

This press release contains “forward-looking information” within the meaning of applicable
Canadian securities legislation. Forward-looking information includes, but is not limited to,
statements with respect to the anticipated production results with respect to the Slater Properties,
future financial or operating performance of the Company and its projects, statements regarding
the anticipated improvements in logistical support and anticipated improvements in sales,
statements made with respect to prospects for the business of the Company, requirements for
additional capital, government regulation of the mineral exploration industry, environmental
risks, acquisition of mining licences, title disputes or claims, limitations of insurance coverage
and the timing and possible outcome of pending litigation and regulatory matters. Generally,
forward-looking information can be identified by the use of forward-looking terminology such as
“plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such
words and phrases or state that certain actions, events or results “may”, “could”, “would”,
“might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to
known and unknown risks, uncertainties and other factors that may cause the actual results, level
of activity, performance or achievements of the Company to be materially different from those
expressed or implied by such forward-looking information, including but not limited to: general
business, economic, competitive, foreign operations, political and social uncertainties; a history
of operating losses; delay or failure to receive board or regulatory approvals; timing and
availability of external financing on acceptable terms; not realizing on the potential benefits of
the proposed transaction; conclusions of economic evaluations; changes in project parameters as
plans continue to be refined; future prices of mineral products; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes and other risks of the mining
industry; and, delays in obtaining governmental approvals or required financing or in the
completion of activities. Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in forward-looking
information, there may be other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking information. The
Company does not undertake to update any forward-looking information, except in accordance
with applicable securities laws.

FOR FURTHER INFORMATION PLEASE CONTACT:

Stephan Theron                                          Colinda Parent
President and Chief Executive Officer                   VP Corporate Development
+1 (416) 861-5912                                       +1 (416) 861-5811
Email: stheron@forbescoal.com                           Email: cparent@forbesmanhattan.com

16 Octobert 2012
Johannesburg

Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)

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