Cline - New Elk Coal Mine - Update

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Cline Mining Corporation ("Cline Mining" or the "Company") (TSX:CMK) Cline Mining continues on plan to ramp up metallurgical coal production at its New Elk Mine in southern Colorado to reach the initial level of 3.0 million tons annually in the first quarter 2012. On August 24, 2011 the Company commenced to drive three new rock slopes from surface down 500 feet (at 6 degrees) to access the Blue seam which lies 50 vertical feet below the level of the coal plant site.

The slopes are scheduled to be completed within 60 days at which time mining in the seam will begin with the introduction of four continuous miners in sequence from October through December this year with two additional continuous coal miners being added in the first quarter 2012. The six miners, organized as three super sections, will have the production capacity of 1.8 million tons of clean coal annually.

At the same time, current mining will continue in the Allen Mine, progressing into the Apache and Allen seams with four additional continuous miners organized into two super sections with a combined additional production capacity of 1.2 million tons of clean coal annually. The continuous miner operating in the Apache seam has now reached the ventilation shaft as scheduled enabling the mine ventilation system to be fully conformed to the mine plan. Three additional continuous miners will be gradually mobilized to complete the implementation of the two super sections and continue mining at the full rate according to plan.

As previously announced, the Company's first commercial metallurgical coal shipment was made into rail cars on August 9, 2011 from New Elk's bulk rail load-out facility. The coal met the full specification grade of New Elk's high quality metallurgical grade coal for steelmaking purposes. The New Elk metallurgical coal is a high volatile, high fluidity, high FSI and low sulfur product. An updated audio-video presentation of the mine operations, including the first rail shipment, will be available on Cline's website at www.clinemining.com.

Dennis Z. Mraz, P.Eng, Chief Operating Officer of Cline, is a Qualified Person within the meaning of National Instrument 43-101 and is responsible for the technical content of this press release.

About Cline: Cline has significant metallurgical coal property interests in British Columbia, Canada and in Colorado, U.S.A. with NI 43-101 compliant independent Technical Reports. Cline Mining Corporation is focused on the exploration and development of metallurgical steel making coals in Canada and the U.S., and on its iron ore property in Madagascar and its Cline Lake gold property in northern Ontario, Canada.

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CLINE MINING CORPORATION Ken Bates, President and Chief Executive Officer

Forward-Looking Information

This news release may contain forward-looking statements (including "forward-looking information" within the meaning of applicable Canadian securities laws), including without limitation, the magnitude or quality of mineral deposits, the economic assessment and estimates regarding the mine life of the New Elk coal mine, and the timing and completion of commercial sales and required financings. The timing of drilling and work recommended by the NI 43-101 Technical Reports are based on current internal expectations, which may prove to be incorrect. Other risk factors are discussed under "Risk Factors" in Cline's Annual Information Form for its 2010 financial year end, and include management's ability to anticipate and manage risk factors. Such forward-looking statements necessarily involve known and unknown risks and uncertainties that are common to junior mineral exploration companies. These risks and uncertainties include, among other things, the Company's need for additional funding to continue its exploration efforts, changes in general economic, market and business conditions, and competition for, among other things, capital and skilled personnel. These statements are not a guarantee of future performance and undue reliance should not be placed on them. The Company undertakes no obligation to update or revise any forward-looking statements except as required by applicable laws. Copies of the Company's public filings under applicable Canadian securities laws are available at www.sedar.com. The Company further cautions that information contained on, or accessible through, this website is current only as of the date of filing such information and may be superseded by subsequent events or filings.

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SOURCE: Cline Mining Corporation

Head office: Brookfield Place, 181 Bay Street, 3rd Floor, Clarkson Gordon Heritage Building, Toronto, ON, M5J 2T3 Contacts: Ken Bates, President and CEO Ernest Cleave, Vice-President and CFO Office: (416) 504-7600 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Website: www.clinemining.com