Penn Virginia Resource Partners, L.P. Announces Acquisition of Coal Reserves and Timber Assets in Central Appalachia

Penn Virginia Resource Partners, L.P. (NYSE:PVR) today announced the acquisition of approximately 29 million tons of coal reserves along with an estimated 56 million board feet (MMBF) of hardwood timber in western Virginia and eastern Kentucky from a private seller for $24.5 million in cash. Funding for the acquisition was provided by borrowings under PVR’s revolving credit facility.

The coal properties are located on approximately 34,000 acres in Lee County, Virginia and Harlan County, Kentucky. The high-quality reserves have been leased to and will be mined by Powdul Acquisition LLC, a subsidiary of International Coal Group, Inc. (NYSE: ICO). Deep mine production from the first mine is expected to commence in the second half of 2008. Production from these properties is expected to be sold in the steam / compliance utility market and also in the metallurgical / steel market.

The timber properties are located on approximately 20,000 acres. PVR will manage the timber operations and will employ contractors to harvest timber. Timber production is expected at an annualized rate of approximately 2.0 MMBF per year.

PVR expects cash flow from the coal royalty payments and timber sales, prior to financing costs, to be approximately $2.4 million during 2009.

Management Comment

A. James Dearlove, Chief Executive Officer of PVR’s general partner, said, “We are pleased to have expanded our coal reserve and timber asset bases in Central Appalachia, a region which has been a primary beneficiary of the recent unprecedented increase in spot coal prices. This acquisition is expected to be accretive to distributable cash flow in 2009.”

Headquartered in Radnor, PA, Penn Virginia Resource Partners, L.P. (NYSE: PVR) is a publicly traded limited partnership formed by Penn Virginia Corporation (NYSE: PVA). PVR manages coal properties and related assets and operates a midstream natural gas gathering and processing business.

For more information about PVR, visit its website at www.pvresource.com.

Certain statements contained herein that are not descriptions of historical facts are “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, the following: when and whether the acquisition will be cash flow accretive; estimated cash flow, prior to financing costs, during 2009; the projected demand for coal; the extent to which the amount and quality of actual production differs from estimated recoverable coal; potential equipment malfunction and repair delays; unanticipated geological problems; competition from other providers of timber; nonperformance by major customers; the legislative and regulatory environment; and political and economic conditions, including the impact of potential terrorist acts.

Additional information concerning these and other factors can be found in PVR’s press releases and public periodic filings with the Securities and Exchange Commission, including PVR’s Annual Report on Form 10-K for the year ended December 31, 2007. Many of the factors that will determine PVR’s future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. PVR undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise