EFI Holding GmbH entered into a letter of intent to acquire 100% of East Coal Company LLC from EastCoal Inc. (TSXV:ECX) and Gramsico Holdings Ltd. for $0.5 million in the week ending December 27, 2013. The deal is subject to approval by EastCoal's and Gramsico's Board of Directors. EFI Holding GmbH entered into an agreement into share purchase agreement to acquire 100% of East Coal Company LLC from EastCoal Inc. (TSXV:ECX) and Gramsico Holdings Ltd. on January 10, 2014.

On January 14, 2013, EFI Holding deposited $0.1 million in escrow. In a related deal, EFI Holding GmbH entered into share purchase agreement to acquire Ukraine Energy LLC from Gramsico Holdings Ltd. and EastCoal Inc. (TSXV:ECX) for $.001 million. Also, Gramsico and EastCoal entered into share purchase agreement to sell Inter-Invest Coal LLC to Strong Group Corporation.

The deal has been approved by the Board of EastCoal. The transaction is subject to approval from the court under the Bankruptcy and Insolvency Act (Canada), currently scheduled for January 10, 2014. EastCoal has applied for the conditional approval of the TSX Venture Exchange.

The cash proceeds payable to Gramsico will be distributed directly to EastCoal for use in funding any further proposal to creditors under the BIA and negotiating any further transactions. On January 16, 2014, Bankruptcy court approved the deal. Alan Stewart and Derrick Lee of Cenkos Securities plc acted as financial advisors for EastCoal.

Dentons Canada LLP acted as legal advisor to EastCoal Inc. (TSXV:ECX).