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James River Coal Company to Sell 3,000,000 Shares of Common Stock

Posted on: Wednesday, 19 March 2008, 06:00 CDT

RICHMOND, Va., March 19 /PRNewswire-FirstCall/ -- James River Coal Company announced today that it has agreed to sell 3,000,000 shares, with an over-allotment option to sell up to an additional 450,000 shares, of its common stock in a public offering through UBS Investment Bank.

Peter T. Socha, Chairman and Chief Executive Officer of James River Coal Company, commented: "The proceeds of this offering will be used, in part, to accelerate the development of several smaller internal projects that we have delayed for the past couple of years due to conditions in the capital markets and soft coal prices. The projects include the recovery of waste coal from an existing JRCC site and several smaller projects to reduce operating costs from current mine production."

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities. A written prospectus may be obtained, when available, from sales representatives of UBS Securities LLC at 299 Park Avenue, New York, NY 10171, Attn: Prospectus Department; (212)-821-3884.

After this offering there will be approximately 24,911,465 shares of common stock outstanding (25,361,465 shares if the over-allotment option is exercised in full).

James River Coal Company mines, processes and sells bituminous steam and industrial-grade coal primarily to electric utility companies and industrial customers. The Company's mining operations are managed through six operating subsidiaries located throughout eastern Kentucky and in southern Indiana.

FORWARD-LOOKING STATEMENTS: Certain statements in this press release, and other written or oral statements made by or on behalf of us are "forward- looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, the following: consummation of the contemplated offering; changes in the demand for coal by electric utility customers; the loss of one or more of our largest customers; inability to secure new coal supply agreements or to extend existing coal supply agreements at market prices; failure to diversity our operations; failure to exploit additional coal reserves; increased capital expenditures; encountering difficult mining conditions; increased costs of complying with mine health and safety regulations; our dependency on one railroad for transportation of a large percentage of our products; bottlenecks or other difficulties in transporting coal to our customers; delays in the development of new mining projects; increased costs of raw materials; lack of availability of financing sources; our compliance with debt covenants; the effects of litigation, regulation and competition; and the other risks detailed in our reports filed with the Securities and Exchange Commission (SEC). Management believes that these forward-looking statements are reasonable; however, you should not place undue reliance on such statements. These statements are based on current expectations and speak only as of the date of such statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.

CONTACT: James River Coal Company Elizabeth M. Cook Director of Investor Relations (804) 780-3000

James River Coal Company

CONTACT: Elizabeth M. Cook, Director of Investor Relations of JamesRiver Coal Company, +1-804-780-3000

Web site: http://www.jamesrivercoal.com/

Source: PRNewswire-FirstCall

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