Fording Canadian Coal Trust, Teck Cominco Ltd., Nippon Steel Corp.(NSC) and Posco have entered into letters of intent which contemplate that NSC and Posco will enter into 10 year sales contracts covering an aggregate of 4.85 million tonnes per annum of metallurgical coal for 2005 from the Elkview and other Elk Valley mines. The contracts provide for a 6.25 million tonnes per annum increase for the 2007 coal year onwards.

In addition, each of NSC and Posco will acquire for U.S.$25 million a 2.5% equity interest in a new entity that will own and operate the Elkview metallurgical coal mine in southeastern British Columbia. The Elkview mine is currently owned by Elk Valley Coal Partnership, a general partnership between Teck Cominco and Fording. Proceeds of the NSC and Posco investment in Elkview will be used to increase the annual production capacity of the Elkview mine to seven million tonnes of coal from its current level of six million tonnes.

"The long-term nature of this agreement is of great value to Elk Valley Coal and the unitholders of Fording Canadian Coal Trust, while providing capital necessary to accelerate expansion plans at the Elkview mine," said Jim Popowich, President of Fording and CEO of Elk Valley Coal. "We are also very pleased to be strengthening our long-term relationships with NSC and Posco, who are important customers of Elk Valley Coal."

Completion of the transactions is subject to board approvals, due diligence, the negotiation and settlement of binding agreements and other customary conditions. The transactions are expected to be completed during the first quarter of 2005.

Fording Canadian Coal Trust is an open-ended mutual fund trust. Through investments in metallurgical coal and industrial minerals mining and processing operations, the Trust makes quarterly cash distributions to unitholders. The Trust, through its wholly-owned subsidiary, Fording Inc., holds a 60% interest in the Elk Valley Coal Partnership and is the world's largest producer of the industrial mineral wollastonite.

Elk Valley Coal Partnership, comprised of Canada's senior metallurgical coal mining properties, is the world's second largest exporter of metallurgical coal, capable of supplying approximately 25 million tonnes of high-quality coal products annually to the international steel industry.

Teck Cominco is a diversified mining company, headquartered in Vancouver, Canada, with assets totaling approximately $6 billion. The company is a world leader in the production of zinc and metallurgical coal and is also a major producer of copper and gold.