Fording Canadian Coal Trust 2007 Fourth Quarter Earnings Results

Fording Canadian Coal Trust (the Trust) (TSX: FDG.UN) (NYSE: FDG) today announced its fourth quarter 2007 results. Cash available for distribution for the quarter was $75 million ($0.50 per unit) compared with $147 million ($1.00 per unit) in the fourth quarter of 2006. For the year, cash available for distribution was $349 million ($2.36 per unit) compared with $618 million ($4.20 per unit) in 2006. Distributions to unitholders for the quarter were $0.53 per unit compared with $0.95 per unit in the fourth quarter of 2006. For the year, distributions were $2.43 per unit compared with $4.15 per unit in 2006.

Net income from continuing operations was $49 million for the quarter compared with $115 million in the fourth quarter of 2006. Net income from continuing operations before unusual items, future income taxes and unrealized gains or losses on foreign exchange forward contracts was $75 million for the quarter compared with $116 million in the fourth quarter of 2006. The decline primarily resulted from lower realized coal prices. For the year, net income from continuing operations was $323 million in 2007 compared with $543 million in 2006. Net income from continuing operations before unusual items, future income taxes and unrealized gains or losses on foreign exchange forward contracts was $357 million in 2007 compared with $584 million in 2006. The decline was primarily due to lower realized coal prices.

"We are pleased with our results in the fourth quarter," said Boyd Payne, President of Fording Canadian Coal Trust. "Looking ahead, the global metallurgical coal market is tight and recent flooding in Australia has further challenged the market. This provides opportunities for Elk Valley Coal for 2008; however, we will need a significant increase in the number of trains we have been receiving just to meet our current customer obligations. We will also need more trains hauling more coal to take advantage of the opportunities that exist due to the tightness in the market."

Highlights:

- The average realized coal price in the fourth quarter of 2007 was $92 per tonne (US$93), which was down from $123 per tonne (US$106) in the fourth quarter of 2006. For the year, the average realized coal price was $105 per tonne (US$98), which was down from $133 per tonne (US$113) in 2006. The decreases in realized prices reflect successive decreases in U.S. dollar coal prices for the 2006 and 2007 coal years and the effects of the stronger Canadian dollar relative to the U.S. dollar in 2007. The average realized coal prices in 2006 included realized gains on our foreign exchange forward contracts. In 2007, the realized gains on the contracts were recorded as non-operating income under new accounting standards. If the realized gains had been included in revenue in 2007, the average realized sales prices would have been $104 per tonne for the fourth quarter and $110 per tonne for the year.

- The significant strengthening of the Canadian dollar relative to the U.S. dollar during 2007 had a negative impact on the business of Elk Valley Coal. This was mitigated somewhat since the Trust uses foreign exchange forward contracts to fix the rate at which its anticipated U.S. dollar cash flows are exchanged for Canadian dollars. All of the contracts will mature during the first quarter of 2008 and the Trust will become fully exposed to the stronger Canadian dollar on April 1, 2008.

- Coal sales volumes of 3.6 million tonnes (Trust's share) for the quarter were slightly higher than in the fourth quarter of 2006. Sales volumes for the year of 13.6 million tonnes were unchanged from 2006.

- Elk Valley Coal's unit cost of product sold increased by 10% to $40.00 per tonne for the quarter compared with $36.40 per tonne in the fourth quarter of 2006. For the year, the unit cost of product sold increased by 5% to $41.30 per tonne compared with $39.20 per tonne in 2006.

- Elk Valley Coal's unit transportation costs decreased by 10% to $33.00 per tonne for the quarter compared with $36.80 per tonne in the fourth quarter of 2006. For the year, unit transportation costs decreased by 5% to $35.10 per tonne compared with $36.90 per tonne in 2006.

- In December 2007, the Trust announced that independent committees had been formed to explore and make recommendations regarding strategic alternatives for the Trust to maximize value for its unitholders. The mandate of these committees is to consider a wide range of alternatives including an acquisition of all the Trust's outstanding units by a third party, a sale of its assets, including its interest in Elk Valley Coal, a combination, reorganization or similar form of transaction, or continuing with its current business plan.

Guidance Update

Please refer to the Outlook section of this news release for partial guidance information for 2008.

Important Information Regarding News Release

The financial information in this news release is unaudited and has not been reviewed by the Trust's auditors. The Trust's management's discussion and analysis and audited consolidated financial statements for the year ended December 31, 2007 will be filed with regulators in March 2008. The Trust reports its financial information in Canadian dollars and all monetary amounts set forth herein are expressed in Canadian dollars unless otherwise stated.