10 year sales arrangement between Elk Valley Coal, Nippon Steel and Posco Agreement Provides Long-Term Sales and Additional Capital for Elkview Expansion CALGARY, Dec. 20 /PRNewswire-FirstCall/ -- Fording Canadian Coal Trust (Fording), Teck Cominco Limited (Teck Cominco), Nippon Steel Corporation (NSC) and POSCO today announced that they 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, increasing to 6.25 million tonnes per annum 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 which 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. The 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 Chief Executive Officer 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. About Fording 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. The Trust's shares are traded on the Toronto Stock Exchange under the ticker symbol FDG.UN and on the New York Stock Exchange under the symbol FDG. About Teck Cominco Teck Cominco is a diversified mining company, headquartered in Vancouver, Canada with assets totalling approximately $6 billion. Shares are listed on the Toronto Stock Exchange under the symbols TEK.MV.A and TEK.SV.B. The company is a world leader in the production of zinc and metallurgical coal and is also a major producer of copper and gold. Further information can be found at http://www.teckcominco.com/. Forward-looking Information Certain information included in this document is of a forward-looking nature. Forward-looking information is subject to known and unknown risks, as well as uncertainties and other factors. Accordingly, actual results may differ materially from those expressed or implied in forward-looking information. Some of the risks, uncertainties and other factors affecting Fording Canadian Coal Trust are discussed in our public filings with the securities regulatory authorities in Canada and the United States. Copies of Fording Canadian Coal Trust's Canadian filings, including our most recent management information circular, annual information form, annual report, quarterly reports, material change reports and news releases, are available online at http://www.sedar.com/, and copies of our U.S. filings, including our most recent annual report on Form 40-F as supplemented by filings on Form 6-K, are available at http://www.sec.gov/. Information in this document is presented as of December 20, 2004 and is subject to change after this date. However, Fording Canadian Coal Trust disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. DATASOURCE: Fording Canadian Coal Trust CONTACT: Ron Millos, Chief Financial Officer, Fording Canadian Coal Trust, (403) 264-1063

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