Colombia Clean Power & Fuels, Inc. Completes Series A Preferred Financing Round

SAN RAFAEL, Calif., July 26, 2011 /PRNewswire-FirstCall/ -- Colombia Clean Power & Fuels, Inc. (OTCBB: CCPF, "CCPF") announced today that it has completed its Series A Convertible Preferred Stock financing round with a total of US$29.3 million in subscriptions, having previously announced its first closing of this preferred financing round on June 3, 2011.  The Company received gross cash proceeds of US$22 million and an additional US$7.3 million in debt was converted into Series A Preferred.  The Series A Preferred Stock pays a 9% dividend and is convertible into Common Stock at $2.00 per share.  The Company intends to use the net proceeds of the Offering to acquire additional coal concessions in Colombia and implement its business strategy to develop and operate coal mining, processing and marketing operations in Colombia.

James Flores, the Company's Chief Financial Officer, stated, "With the completion of this round of financing, we have the capital to continue our near-term strategy of acquiring coal properties in Colombia and funding our ongoing drilling and exploration program to prove our coal deposits.  Importantly, with this financing we have dramatically reduced our debt levels, giving us great flexibility in project financing options as we develop our commercial coal mining operations."

To date, the Company has acquired six coal mining concessions covering over 10,000 hectares (over 25,000 acres) with an estimated 150 million tons of coal and is actively negotiating additional acquisitions.

"Our drilling and exploration program is proceeding according to our business plan, consistent with international methodologies for proving coal resources in advance of bankable feasibility studies of our anticipated reserves," said Graham Chapman, Chief Operating Officer.  He added, "Recent highlights of our drilling program include the results of coking tests in Otanche coal that confirm we have a hard coking coal with excellent results, including the following: coke hardness test (Micum 40:  72.97%; Micum 10:  9.41%), vitrinite reflectance (1.11%) , low phosphorous (0.057% as received and 0.059% dry), and plastometer characteristics of 10,458 DDPM.  Boreholes continue to reveal a multi seam environment exists and our mining engineers are developing suitable mining plans that will lead to efficient operations exploiting high quality coals."

The Series A preferred shares have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

About Colombia Clean Power & Fuels, Inc.

Colombia Clean Power & Fuels, Inc. (OTCBB: CCPF.OB) is developing coal mining, coal coking and clean coal technology operations in the Republic of Colombia.  The Company plans to build mines to produce both metallurgical coal and thermal coal and implement advanced coal technologies, such as coal gasification and coal-to-liquids, to produce metallurgical coke, urea, liquid fuels, power and other clean energy solutions.  Colombia is the world's tenth largest producer and fourth largest exporter of coal, with an estimated 7 billion metric tons ("MT") of recoverable reserves and 17 billion MT of potential reserves.

The Company's current operations are focused on coal exploration and development activities. The Company has retained leading engineering and geological services firms in the U.S. and Colombia to conduct exploration work in selected concessions acquired to date and others under consideration for acquisition by the Company.  The Company's team of executives, advisors and partners is comprised of experienced entrepreneurs and business professionals in the U.S., Colombia and China that have a breadth of experience in coal mining and clean coal technologies as well as substantial industry relationships.

For more information, visit www.ColombiaCleanPower.com

This release contains forward-looking statements regarding Colombia Clean Power & Fuels 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, and other risk factors described from time to time in the Company's reports filed with the SEC.  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 Clean Power & Fuels undertakes no obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise.

Company Contact: Daniel Carlson
Email:  [email protected]
Telephone +1 (415) 460-1165
www.ColombiaCleanPower.com

SOURCE Colombia Clean Power & Fuels, Inc.