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Fording Canadian Coal Trust 30 June 2008

Company News Alert

Significant increase in common trust unit price

Common HOLD The Fording Canadian Coal Trust (Fording) common trust unit has appreciated significantly since our
1Q 08 update report, dated 14 May 2008, driven mainly by positive investor reaction to sharp rises in
Trust Unit contract prices for the 2008 coal year. This is in line with our expectations. Therefore, as our target
price no longer supports a BUY, we downgrade the common trust unit to a HOLD.

Ticker: FDG_u.TO
Target price: C$101.01
Current price: C$94.04
We will reassess our common trust unit rating for Fording after the company releases its 2Q 08 results
Price change since on 21 July 2008.
31.3%
previous report:

NYSE BUY We continue to anticipate a positive currency impact on the NYSE trust unit over our investment
horizon. Therefore, we maintain our BUY rating.
Trust Unit
Ticker: FDG
Target price: US$106.32
Current price: US$93.75
We will reassess our NYSE trust unit rating for Fording after the company releases its 2Q 08 results on
Price change since 21 July 2008.
31.7%
previous report:

Supervisor: Bhavesh Chauhan

Analyst: Chaitali Paul Investment horizon - short term actionable trading strategies
Editor: James Smithies This report addresses the needs of strategic investors with a long term investment horizon of 6-12 months. If this
Global Research Director: report is provided to you by your broker under the Global Settlement, you may now also access (free of charge) the
Satish Betadpur, CFA short term trading outlook that we publish from time to time for this issuer, looking at the coming 5-30 days for
readers with a shorter trading horizon. These are available online only at www.researchoracle.com.
Next news due:
2Q 08 results, 21 July 2008
In our 1Q 08 update report, dated 14 May 2008, we rated the Fording common trust unit a BUY on
fundamental grounds, with a 6-12 month target price of C$101.01 and a potential upside of 41%.
Since then, the common stock has increased 31.3%, in line with our expectations, mainly driven by
positive investor reaction to sharply rising contract coal prices; these rises reflect soaring demand from
the steelmaking industry. Fording's average coal price for the 2008 coal year (which commenced on
01 April 2008) is expected to be US$275.00 per metric ton, up from US$97.70 in the 2007 coal year.
Furthermore, on 10 June 2008, Fording boosted its quarterly payment to unit holders, from C$0.5 per
unit in 1Q 08 to C$2.50 per unit in 2Q 08, following the surge in coal prices.

The rise in the common stock price is in line with our expectations. Therefore, as our current target
price no longer supports a BUY, we downgrade the common trust unit to a HOLD.

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