CALGARY, Sept. 21 /PRNewswire-FirstCall/ -- Fording Canadian Coal Trust (TSX: FDG.UN, NYSE: FDG) today announced that the Trustees have declared a third quarter cash distribution of C$0.80 per unit to be paid on October 13, 2006 to unitholders of record on September 29, 2006. The ex-distribution date is September 27, 2006. This distribution is for the period from July 1, 2006 to September 30, 2006. Guidance Update The Trust is updating its 2006 guidance for sales volumes and capital expenditures. Elk Valley Coal has narrowed its 2006 sales volume estimate to be in the range of 22-23 million tonnes (of which the Trust's share is 60%), from its previous guidance of 22-25 million tonnes. This reflects customer shipping performance driven by the substitution of lower priced semi-soft coking coals by some steel mills and generally good metallurgical coal production worldwide, as well as competition from other hard coking coal producers in Canada and Australia who are increasing production. Capital expenditures for the Trust are now expected to be about 20% less than previously estimated, at approximately $40 million for the year, due to the deferral of some capital projects. Consistent with previous guidance the 2006 calendar year cost of product sold is estimated to be in the range of $38 to $39 per tonne, and transportation costs are expected to be in the range of $37 to $38 per tonne. The average calendar year and coal year sales prices remain unchanged at approximately US$112 per tonne and US$107 per tonne respectively. Tax Information for Cash Distributions The information below is provided to assist unitholders in understanding the tax treatment of distributions paid by the Trust. For unitholders resident in Canada, income distributed by the Trust will generally be treated as Trust income except where the income is sourced from capital gains realized by the Trust or from dividends received by the Trust. In these cases, the Trust intends to make appropriate designations in its tax returns so that the capital gains or dividends will retain their character when distributed to unitholders and will be subject to income tax accordingly. Distributions to unitholders made in a year that are greater than the net income of the Trust for the year will not be included in unitholders' income but will be considered a return of capital and a reduction of the cost base of the units. Income distributed by the Trust to non-residents of Canada will be subject to Canadian withholding tax of 25% subject to reduction under the provisions of any applicable tax treaty or conventions. Canadian withholding tax is generally 15% for U.S. holders. The Trust is taxed as a corporation for U.S. tax purposes. Accordingly, distributions by the Trust will be considered foreign-source dividend income to the extent paid out of current or accumulated earnings and profits of the Trust, determined under U.S. income tax principles. Assuming that applicable unitholder-level requirements are met, these distributions are "qualified dividends," eligible for taxation at reduced rates under recent U.S. federal income tax legislation. Payments in excess of current or accumulated earnings and profits will be applied first to reduce the cost base of the units and then as a capital gain should the cost base of the units be reduced to zero. The Trust will issue a statement after the close of its fiscal year (December 31) that will provide information for Canadian and U.S. resident investors about the final characterization of the 2006 Trust distributions for income tax purposes. Unitholders should consult their own tax advisors for advice with respect to the income tax consequences based on their particular circumstances. 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 subsidiaries, holds a 60% interest in the Elk Valley Coal Partnership and is a leading 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, supplying high-quality coal products 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. 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 September 21, 2006 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: Paul Armstrong, Director, Investor Relations, (403) 260-5215; Catherine Hart, Investor Relations Analyst, (403) 260-9817; Email: ; Website: http://www.fording.ca/

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