Royal Coal Signs Letter of Intent to Acquire River Coal Loading Terminal in Eastern Kentucky

TORONTO, Dec. 22, 2010 - Royal Coal Corp. (TSX VENTURE: RDA) ("Royal Coal" or the "Company") announced today the signing of a Letter of Intent ("LOI") to acquire 80 percent ownership of a coal loading and unloading terminal located on the Big Sandy River in Catlettsburg, Eastern Kentucky (the "River Terminal"). The purchase includes the equipment used to operate the River Terminal, which is currently in operation and has the capacity to load over 100,000 tons per month.

The total purchase price shall be the payment of US$8,250,000 of the seller's bank debt. The Company shall have an option to purchase the remaining 20% of the River Terminal for a price to be negotiated with the vendor.

Tom Griffis, Chairman of Royal Coal, commented "The River Terminal gives Royal Coal strategic positioning within the heart of the Eastern Kentucky coal district and provides us with an owner operated river loading facility where coal production from our Eastern Kentucky surface coal mines can be brought to market."

Closing of this acquisition is expected by January 31, 2011 and is subject to Royal Coal completing financing arrangements.


About Royal Coal

Royal Coal is a coal exploration and production company, headquartered in Toronto, Ontario, Canada with a regional office in Hazard, Kentucky, U.S.A. whose primary business focus is developing producing surface coal mining operations in the Central Appalachian coal producing region of the United States, which includes parts of West Virginia, Virginia, Kentucky, Ohio, and Tennessee.

This news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. The forward-looking statements contained in this press release are made as of the date hereof and Royal Coal undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.



For more information, please contact

Royal Coal Corp.
Tom Griffis, Chairman
(416) 861-8775
http://www.royalcoal.com