Cline New Elk Coal Mine Approvals

Cline Mining Corporation (TSX: CMK) (“Cline” or the “Company”) is pleased to report that further to its news release of December 30, 2011, New Elk Coal Company (“New Elk”), a wholly-owned subsidiary of Cline, received the last regulatory approval required for room and pillar mining in the Blue Seam on January 3, 2012. Regulatory approval had previously been granted for mining the Allen seam.  Accordingly, all approvals are now in place for mining in both seams in accordance with the mining plan at the New Elk Coal Mine in Las Animas County, southern Colorado.

As contemplated in the previous news release, New Elk continues to implement its first phase plan with a view to bringing the New Elk Coal Mine into full commercial production of high quality metallurgical coke making coal at a rate of 3.0 million tons of saleable coal annually during its initial 20-year mine project plan period.  The full planned production rate is to be attained during the first half of 2012.  Saleable coal production during calendar year 2012 is projected at 2.5 million tons, with production in the years 2013 and annually thereafter at the rate of 3.0 million tons. These projections are subject to any unforeseen, unexpected and unanticipated delays or events, including the receipt of normal ongoing regulatory permits and approvals, which could affect production or alter timelines.