PBS Coals Limited Announces Completion of Business Combination

Market Wire, September, 2008

Operations Update

With the demand and pricing for low-volatile metallurgical coal remaining strong PBS Coals Limited has undertaken a review to significantly increase its output beyond the plans being carried out in the present expansion activities, and preliminary engineering work has been undertaken in this respect. Progress on the present expansion plans for 7 million tons per year ROM (run of mine) production of high-grade, low-volatile metallurgical coal is progressing on schedule with:

- The new Kimberly Run drift mine now in production as planned with one super section in operation and a further single unit section due to come on line before the end of 2008. In addition, a second section is being added to the Augustus drift mine this year and the Horning drift mine is scheduled to commence operations in January 2009.

- The upgrades to the cleaning plants at Shade are completed and the Cambria wash plant is on schedule for production in January of 2009.

PBS Coals Limited is also currently undertaking exploratory drilling in a potentially large metallurgical reserve and also researching an extensive, high BTU thermal coal reserve.

Additional information relating to the ownership of or control over common shares of PBS Coals Limited by the shareholders noted in this press release will be included in reports filed by these shareholders.

The technical information in this press release has been reviewed by Tim Phillips, the Executive Vice-President of PBS Coals Limited and a director of PBS Coals Limited. Mr. Phillips is a qualified person for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Phillips has verified the data in this press release by referring to the Independent Technical Report - Coal Reserves and Mining Operations - PBS Coals, Inc. prepared for PBS Coals Corporation by John T. Boyd Company effective May 30, 2008 available at www.sedar.com . Details of quantity and grade or quality of each category of mineral resources is included in the report.

Forward-Looking Statements

Certain statements contained in this release constitute "forward-looking statements" and express views as to future events, circumstances and trends relating to the business of PBS Coals Limited. Words such as "plans," "intends," "outlook," "expects," "anticipates," "estimates," "believes," "should" and similar expressions may identify forward-looking statements. Forward-looking statements are based on management's current expectations and assumptions and entail various risks and uncertainties. There is no assurance that any forward-looking statement will materialize. Actual results may differ materially from these expectations and forward-looking statements, if known and unknown risks or uncertainties affect PBS Coals Limited's business, or if management's expectations or assumptions prove to be inaccurate. Factors that could cause actual results to differ materially from the forward-looking statements contained herein include, but are not limited to: the ability of PBS Coals Limited and the Offeror to satisfy or complete the conditions of the Offer as required by the support and purchase agreement; the availability of regulatory approvals required for completion of the Offer; PBS Coals Limited's and the Offeror's abilities to complete a second-step transaction, the ability of PBS Coals Limited to complete its current expansion plans as anticipated; the results of PBS Coals Limited's exploratory drilling program. PBS Coals Limited disclaims any obligation or intention to update or revise any forward-looking statement, whether the result of new information, future events or otherwise, except as otherwise required by applicable law. Additional information concerning risks and uncertainties affecting PBS Coals Limited is contained in the company's filings with the Canadian securities regulatory authorities available on SEDAR at www.sedar.com .