Colombia Energy Resources Initial NI 43-101 Resource Report Confirms Ruku Mining Complex Resources

SAN FRANCISCO, April 5, 2012 /PRNewswire/ -- Colombia Energy Resources, Inc. (OTCBB: CERX), a metallurgical coal exploration and production company operating in the Republic of Colombia, has released the initial independent resource report on its Ruku Mining Complex, which is available for download from www.colombiaenergyresources.com.

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"The completion of our first compliant resource report is a major milestone for CERX," said company CEO Ronald G. Stovash. "In addition to providing our shareholders with more information on our coal qualities and quantities, it also represents a critical step toward a dual listing in Canada later this year."

The Ruku Mining Complex is located near the village of San Pedro in the municipality of Socota, a provincial department of Boyaca, Colombia. The total area of the Ruku project is comprised of four adjacent coal mining concessions totaling approximately 91 hectares (226 acres), one of which has been producing metallurgical coal for nearly 18 years.

After acquiring the Ruku complex last year, CERX temporarily closed the mine to improve safety protocols and operating conditions. The mine was brought back into production in December and was producing 1,800 tons of coal per month until February, when mining operations were stopped due to vandalism. Maintenance and rehabilitation programs have continued, and management expects production at the mine to restart within 30 days.  

Coal produced from Ruku has been characterized as high quality, low volatile metallurgical coal with typical quality characteristics approximating 19% volatile matter, 6.5% ash, 4% moisture, <1% sulfur and 14,000 BTUs.

The resource report states that Ruku has in excess of 4 million metric tonnes of coal, with measured and indicated resources of 2.4 million metric tonnes, and 1.8 million metric tonnes inferred.

"The report demonstrates we have enough coal for a minimum of 25 year mine life at our intended production levels," said Carlos Soto, president of CERX's wholly owned subsidiary, Colombia Clean Power SAS. "We expect to eventually drill three cored holes to prove up additional resources and will update our resource report accordingly."

The company currently controls more than 25,000 acres in four distinct blocks in Colombia. The Ruku complex is the smallest of the four blocks, and is expected to eventually contribute a smaller amount of overall metallurgical coal production relative to the larger Otanche and Boavita blocks.

The company has retained J.T. Boyd to review the 43-101 report as well as conduct resource analysis on other company controlled properties. CERX expects the initial resource reports on its Boyaca properties to be completed later this year.

"Supported by this new report on Ruku, and the anticipated report from JT Boyd on our other controlled properties, we remain committed to our long term goal of producing 1 million tons per annum by 2015," added Stovash.

For additional information about Colombia Energy Resources, contact Liolios Group at 949-574-3860 or email [email protected].

About Colombia Energy Resources, Inc.
Colombia Energy Resources (OTCBB: CERX) is a metallurgical coal exploration and mining company. CERX is exploring coal deposits and developing coal mines at company controlled mining concessions. The company currently controls mining concessions underlying approximately 25,000 acres of land in the Republic of Colombia which is the world's tenth largest producer and sixth largest exporter of coal. The country also has the largest reserve base in South America with an estimated 7 billion metric tons (MT) of recoverable reserves and 17 billion MT of potential reserves.

The company plans to import international mining best practices to Colombia as it becomes a leading consolidator in the Colombian metallurgical coal market. CERX's team of executives, advisors and partners is comprised of experienced entrepreneurs and business professionals in the U.S. and Colombia with a breadth of experience in coal mining as well as substantial industry relationships.

For more information, visit www.colombiaenergyresources.com.

Forward Looking Statements

This release contains forward-looking statements regarding CERX's future plans and expected performance based on assumptions the Company believes to be reasonable. A number of risks and uncertainties could cause actual results to differ materially from these statements, including, without limitation, the success rate of business development efforts, exploration efforts and the timeliness of development activities, fluctuations in coal and energy prices, confirmation of estimated resources, and other risk factors described from time to time in the Company's reports filed with the SEC. Such risks also include the restart of mining operations at the Ruku Mining Complex, which depends on factors not under the company's control and therefore there is no assurance it will occur as anticipated. In addition, the Company operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond the Company's control. Colombia Energy Resources, Inc. undertakes no obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise.

Cautionary Note to U.S. Investors—The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "resources," that the SEC guidelines strictly prohibit us from including in our filings with the SEC.  U.S. investors are urged to consider closely the disclosure in our annual report on Form 10-K for the year ended December 31, 2010, File No. 000-32735, and in subsequent filings with the SEC. You can review and obtain copies of these filings from the SEC's website at www.sec.gov/edgar.shtml.   

Company Contact:
Daniel Carlson
Executive Vice President
[email protected]
Tel 415-460-1165

Investor Relations:
Liolios Group, Inc.
Justin Vaicek
Tel 949-574-3860
[email protected]     

SOURCE Colombia Energy Resources, Inc.