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America West Resources Awarded $18 Million Coal Supply Contract

Posted on: Tuesday, 10 November 2009, 08:36 CST

SALT LAKE CITY, Nov. 10 /PRNewswire-FirstCall/ -- America West Resources, Inc. (OTC Bulletin Board: AWSR), a domestic compliant coal producer with mining operations in Central Utah, today announced that the Company has received a five-year coal supply contract from a major U.S. commodity producer and refinery. The contract, valued at $18 million, provides for America West to supply the company with compliant coal mined from its Horizon Mine. The new customer has also been granted the right to purchase additional tons of coal each year over the life of the contract, which if fully exercised could yield a total of $36 million of revenues to America West.

Commenting on the new supply contract, Dan Baker, Chief Executive Officer of America West, noted, "Now that we have stabilized coal production at Horizon and are currently producing approximately 30,000 tons per month from a single mining section, we are in active negotiations with a number of new potential customers who are seeking clean compliant coal to fuel their respective energy needs. To that end, we are very pleased to welcome this new client to our growing customer base and look forward to further expanding the number of domestic and international companies we supply as coal production from Horizon continues to ramp up."

About America West Resources, Inc.

Headquartered in Salt Lake City, Utah, America West Resources is an established domestic coal producer focused on the mining of compliant (low-sulfur) coal and its sale primarily to U.S. utility companies for use in generating electricity. The Company operates the Horizon Mine, which has recoverable compliant coal reserves under lease of approximately 19 million tons. For more information, please visit www.AmericaCoal.com.

Forward-Looking Statements

This news release contains forward-looking statements Please refer to the Company's Form 10-K and other filings with the United States Securities and Exchange Commission (the "SEC") for additional information regarding risks and uncertainties, including, but not limited to, the risk factors listed from time to time in such SEC reports. Copies of these filings are available through the SEC's electronic data gathering analysis and retrieval system (EDGAR) at www.sec.gov. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, statements regarding current or future mining output, ability to obtain necessary equipment, personnel and permits to mine coal, production capabilities, management's strategy, plans and objectives for future operations, plans and objectives for production, plans and objectives for present and future production, plans and objectives for regulatory approval, and anticipated results, constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, including, without limitation, risks associated with coal production, mining in general and in our mines in particular, ability to achieve the coal output anticipated, ability to obtain permits, ability to hire and retain the necessary personnel, as well as other risks detailed in our filings with the SEC. We assume no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

FOR ADDITIONAL INFORMATION, PLEASE CONTACT: ELITE FINANCIAL COMMUNICATIONS GROUP Dodi B. Handy, President & CEO (Twitter: dodihandy) For Media Inquiries: Kathy Addison, VP, Elite Media Group (Twitter: kathyaddison) 407-585-1080 or via email at AWSR@efcg.net

SOURCE America West Resources, Inc.

Source: PR Newswire

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