Vancouver, B.C., Canada – March 27, 2014 – Colonial Coal International Corp. (TSX-V:CAD) announces that its wholly -owned subsidiary, Watson Island Development Corporation (“WatCo”), has retained McMillan LLP to advance litigation in the British Columbia Supreme Court against the City of Prince Rupert (the “City”) to enforce WatCo’s rights in connection with the acquisition of Watson Island.

A Certificate of Pending litigation has also been filed to prevent the land from being sold to others while the litigation is outstanding.

WatCo has been working to purchase Watson Island for the last several years and has been making payments to the City of between $75,000 and $90,000 per month, under the terms of an Exclusivity Agreement. In furtherance of the Exclusivity Agreement, the City accepted a conditional offer to purchase for $5 million in 2012.