Cline Mining Sells Its Lossan Met-coal Deposit To Xstrata Coal For Cdn$40 Million

Cline Mining Corporation ("Cline Mining" or the "Company") (TSX:CMK) is pleased to announce that Xstrata Coal has agreed to acquire 100% of the Company's metallurgical coal deposit within Cline Mining's Lossan property ("Lossan") for CDN$40 million, subject to customary conditions. Closing is expected to occur on or about October 12, 2011.

Lossan is located in the Peace River Coalfield of north eastern British Columbia, Canada and has an NI 43-101 compliant resource of 240 million tonnes. Lossan covers an area of approximately 3,800 hectares.

Ken Bates, the President and CEO of the Company, commented "The sale of the Lossan metallurgical deposit provides Cline Mining with immediately available funds to ensure efficient ramp-up and expansion of its New Elk metallurgical coal mine and the ability to avail itself of other strategic opportunities."

About Cline: Cline has significant metallurgical coal property interests in North America with NI 43-101 compliant independent Technical Reports. Cline Mining Corporation is a mine development company focused on the exploration and development of metallurgical steel making coals in Canada and the U.S., iron ore in Madagascar and the Cline Lake Gold Mine Property in northern Ontario, Canada.

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 legislation and "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995) relating to, among other things, the magnitude or quality of mineral deposits within the Lossan property and the future operations of the Company's New Elk coal mine. Information concerning mineral reserve and resource estimates may also be deemed to be forward-looking information in that it reflects a prediction of the mineralization that would be encountered if a mineral deposit were developed and mined. Such statements are based on assumptions, estimates, forecasts and projections made in light of the trends, conditions and expected developments that are considered to be relevant and reasonable in the circumstances at the date that such statements are made. 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. A number of factors and assumptions may cause actual results, level of activity, performance or outcomes of the Company to be materially different from those expressed or implied by such forward-looking statements including, the estimation of mineral reserves and resources and the operational forecasts for the New Elk coal mine. More detailed risks are set forth in other public filings of the Company which may be accessed on the Company's profile page at www.sedar.com. Consequently, undue reliance should not be placed on such forward-looking statements. In addition, all forward-looking statements in this news release are given as of the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.

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SOURCE: Cline Mining Corporation

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