Teck, CP reach 10-year agreement for westbound coal exports

Canadian Pacific Railway Limited and Teck Resources Limited reached a 10-year agreement to transport Teck's steelmaking coal from its five mines in southeast BC to Vancouver area ports.

"This agreement gives
Teck the certainty we need to realize our growth strategy in coal and to
deliver our increased production on a timely basis to our key markets,"
said Don Lindsay, Teck President and CEO.

The agreement reflects the
companies’ commitment to work together to achieve growth in the volume of coal
shipped through a range of economic and marketplace dynamics and provides for flexibility
over the long term. The agreement provides for investments by CP that enhance
coal-handling capacity to provide for Teck’s volume growth.

"CP is delighted to
have participated in the creation of a unique and collaborative agreement that
sets the foundation for the next decade," said CP President and CEO, Fred
Green. "Our ongoing dialogue has provided new and deeper insight into
Teck’s growth objectives. Importantly, the agreement provides the stability and
confidence to grow our business and enhance this world class supply chain for
our mutual benefit."

This is a confidential
agreement that commences April 1, 2011.