Executive Chairman of Forbes & Manhattan Coal Corp. disallows proxy votes supporting the Concerned Shareholders at Annual General Meeting

TORONTO, Sept. 17, 2012 /CNW/ - Today, Forbes & Manhattan Coal Corp. held its Annual General Meeting and the Executive Chairman, Stan Bharti, disallowed proxy votes that supported the Concerned Shareholders' Board nominees by an overwhelming majority.

As a result of the technical invalidation of proxy votes which the Concerned Shareholders (Resource Capital Fund V L.P. ("RCF"), Terrafirma Securities Holdings LL.C. and Skye Alba Pty Ltd.) believe is improper, management's slate of directors was purportedly elected.  This means the key issues of a lack of transparency and poor corporate governance at the Company will not be addressed.  It is disappointing the Executive Chairman failed to listen to the voice of the shareholders, and this has resulted in the purported election of an entrenched captive Board.

The Concerned Shareholders will now consider all possible options to challenge the actions of the Executive Chairman and to ensure:

• A capable Board with relevant industry and country experience.
  
  
• Strong, independent governance to restore shareholder value. The Board must put corporate governance into action by actually being independent, and not just talking about it.
  
  
• Proper oversight.  A Board must be elected that will ensure management are working for the benefit of the shareholders.
  
  
• Your investment is protected.  The Board must be aligned with your interests as investors in the business.

Cautionary Note Regarding Forward Looking Statements

Certain statements contained herein are "forward looking statements" within the meaning of applicable securities laws. Often, but not always, forward-looking statements may be identified by their use of forward-looking terminology such as the words "plans", "expects", "expected", "projects", "believes", "anticipates", "intends", "estimates", "scheduled" or other similar words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to known and unknown risks, uncertainties and other factors which could cause actual results, performances or achievements to differ materially from future results expressed or implied by such forward looking statements.  Factors related to such risks and uncertainties, and underlying estimates and assumptions include, among others, the Concerned Shareholders' assessment of the effect of the proposed changes on the Company and on the shareholders of the Company, the timing and prospects for the implementation thereof, general economic and market conditions, changes in law and the ability to implement business strategies and pursue business opportunities.  Shareholders are cautioned that all forward-looking statements involve risks and uncertainties, including those risks and uncertainties detailed in the Company's filings with applicable Canadian securities commissions, copies of which are available at www.sedar.com.  Accordingly, undue reliance should not be placed on forward looking statements or information. We do not expect to update forward-looking statements or information continually as conditions change, except as may be required by law.

SOURCE: Resource Capital Fund V L.P.