TORONTO, ONTARIO--(Marketwire - Nov. 16, 2011) - Forbes & Manhattan Coal Corp. (TSX:FMC)(JSE:FMC) ("Forbes Coal" or the "Company"), through its subsidiary Slater Coal Proprietary Limited, has secured a ZAR230 million (approximately C$30 million) loan facility from Investec Limited ("Investec"), an international investment and private banking group. Funds from the loan facility will be used to further the Company's expansion plans.

"Forbes Coal's new loan facility, combined with current working capital, puts the Company in an even better financial position. We are now able to structure future growth in a way that is non-dilutive to shareholders," said Stephan Theron, President and CEO of Forbes Coal. "Our goal continues to be to grow the Company both organically and through acquisitions, becoming a mid-tier coal producer within the next few years."

The loan facility consists of a five year senior secured amortising term loan facility of up to ZAR200 million (approximately C$25 million) and a revolving loan facility of up to ZAR30 million (approximately C$5 million).

Both facilities are flexible in terms of drawdowns and repayments.

Forbes Coal has cash and cash equivalents of C$24.2 million as at August 31, 2011 and cumulative EBITDA of C$12.7 million for the six months ended August 31, 2011.

About Investec

Investec Limited (JSE:INL) is an international investment and private banking group. The Group provides corporate and investment banking, private banking, securities trading, asset management, property trading and management and trade finance services.

About Forbes Coal

Forbes Coal is a growing coal producer in southern Africa. It holds a majority interest in two operating mines through its 76.75% interest in Slater Coal (Pty) Ltd., a South African company ("Slater Coal") which has a 70% interest in Zinoju Coal (Pty) Ltd. ("Zinoju"). Zinoju holds a 100% interest in the Magdalena bituminous mine and the Aviemore anthracite mine in South Africa (collectively, "the Slater Properties"). The mines have a substantial combined resource of coal and each mine has a projected life span in excess of 20 years. Forbes Coal is in the process of increasing production at both mines and looks to triple production from 2010 levels in the next three years using existing infrastructure and capacity. The Company has in-place transportation infrastructure allowing its coal to reach both export corridors and the growing domestic coal market. Forbes Coal has a strong balance sheet and an experienced coal-focused management team.

Please refer to the Company's NI 43-101 compliant technical report on the Slater Coal Properties dated March 1, 2011 entitled "Technical Report on Slater Coal and Subsidiaries, KwaZulu-Natal Province, South Africa", available on the SEDAR profile of the Company at www.sedar.com. Additional information is available at www.forbescoal.com.

Cautionary Note Regarding Forward-Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the loan facility anticipated production results at the Slater Properties, future financial or operating performance of the Company and its projects, statements regarding transportation, infrastructure and the prospects for the business of the Company and requirements for additional capital. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". 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, including but not limited to: general business, economic, competitive, foreign operations, political and social uncertainties; a history of operating losses; delay or failure to receive board or regulatory approvals; timing and availability of external financing on acceptable terms; not realizing on the potential benefits of the proposed transaction; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral products; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

FOR FURTHER INFORMATION PLEASE CONTACT:
        Forbes & Manhattan Coal Corp.
        Stephan Theron
        President and Chief Executive Officer
        +1 (416) 861-5912
        This email address is being protected from spambots. You need JavaScript enabled to view it.

        Forbes & Manhattan Coal Corp.
        Sabina Srubiski
        Investor Relations Manager
        +1 (416) 309 2957
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        www.forbescoal.com