Cline New Elk Coal Mine Update

Cline Mining Corporation (TSX: CMK.TO - News) ("Cline" or the "Company") presents the following update on its development, operation, production and ongoing plans regarding its New Elk Coal Mine in Las Animas County, southern Colorado.

New Elk continues to implement its first phase mine plan referenced in the Company's May 27, 2011 Technical Report (as defined below) and is now bringing its New Elk metallurgical 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.  This production rate is expected to be attained during the first half of 2012.  Saleable coal production during calendar year 2012 is now projected at 2.5 million tons with production in the years 2013 and thereafter at the rate of 3.0 million tons annually. The projection is of course subject to any unforeseen, unexpected and unanticipated delays or events, including the receipt of normal ongoing regulatory permits and approvals, that could affect production or alter time lines.