Cline extends loan agreement with Mitsui

Friday, Jul 23, 2010

Cline Mining Corporation
(TSX: CMK) ("Cline" or the "Company") is pleased to announce that it has
agreed with Mitsui Matsushima International Pty. Ltd.
("Mitsui") to a one year extension of the Cline-Mitsui Loan Agreement dated
July 18, 2008 for CDN$19 million. The extended principal repayment will be
subject to an interest rate of 12% per annum calculated annually and will
mature on July 25, 2011 ("Maturity Date"). Cline will pay the interest
accrued to July 25, 2010 in accordance with terms of the July 18,
2008 Loan Agreement.

The main terms of the Extension Agreement include the following: firstly,
Cline has the right to prepay the loan and any accrued and unpaid interest
at any time from time to time, without penalty, before the Maturity Date;
additionally, Mitsui has the option to convert up to CDN$19 million of the
principal balance of the loan into shares of Cline Mining Corporation at the
price of CDN$1.50 per share, subject to the approval of the Toronto Stock
Exchange; further, Cline will repay Mitsui $2.0 million of the Principal
amount of the Debt by December 31, 2010, and commencing in January 2011, the
Company will repay Principal amounts of the Debt in amounts equal to ten
percent (10%) of the proceeds from the sale of coal from its New Elk Coal
Mine each month.

The proceeds from the Mitsui loan for CDN$19 million were used for the
acquisition of the New Elk Coal Mine, located in Las Animas County,
Colorado, U.S.A. The mine is now in development, on schedule and on budget
for first production of high quality metallurgical coking coal in Q4 of
2010, proceeding to 3 million tons annually. Cline's New Elk Coal Mine has a
measured and indicated coal resource of 315 million tons of in-place coal as
documented in the 2008 Behre Dolbear independent NI 43-10 Technical Report.
The initial Behre Dolbear report was referenced and relied upon by Agapito
Associates, Inc. in its Preliminary Assessment dated March 13, 2010, which
assessment was supported by a NI 43-101 compliant Technical Report. Both
reports are available on SEDAR and Cline's website at www.clinemining.com.

In addition to its coal resource the coal mine assets include a coal
preparation plant, product coal silos, buildings, surface real estate,
conveyor systems, electrics, underground workings with mine portal access
from the plant site, mine permit and a permitted coal refuse disposal site.
For an update on mine progress and permitting, please see Cline's News
Release dated July 14, 2010.

The New Elk Coal Mine is accessed directly by paved highway from the town of
Trinidad, southern Colorado. Employment levels at the mine have reached 60
people, at least half of which have been hired locally. A video, which was
shown at the Annual and Special Meeting of Shareholders of the Company on
Friday June 11, 2010 is available showing the progress and key people
interviews in Trinidad and at the New Elk Coal Mine and can be viewed on
Cline's website (www.clinemining.com).

Source: Canada Wire