XINERGY LTD. ACQUIRES MINORITY POSITION IN ELK HORN COAL COMPANY, LLC AND ANNOUNCES REDEMPTION OF BONDS

KNOXVILLE, TN, Nov. 30 /PRNewswire-FirstCall/ – Xinergy Ltd. (“Xinergy” or “the Company”)
announced today the signing of a purchase agreement to acquire
1,852,367 membership units (common equity) of Elk Horn Coal Company,
LLC (“Elk Horn”), located in eastern Kentucky.  Elk Horn is a private
entity engaged in the leasing of its coal reserves to other parties
that mine, prepare, and market the coal. Its properties consist of
mineral rights to 153,600 acres of coal bearing land. The purchase
agreement represents approximately 17.5% of the outstanding units in
Elk Horn.

Jon Nix, CEO and Chairman of Xinergy, commented, “We continue to execute
on our acquisition growth strategy with our investment in Elk Horn. We
are taking advantage of opportunities we consider to be accretive on a
near-term cash basis in the Central Appalachian region and that are
contiguous to our current operations.” 

Xinergy has retained Moelis & Company to serve as the Company’s advisor
in connection with its investment in Elk Horn.

Separately, the Company also announced that it will redeem a total of
US$2.5 million of its US$75 million senior secured note at a rate of
110% of the face amount, with the consent of its senior lenders. 
Additionally, Xinergy has agreed to similarly redeem, on a monthly
basis until February 2011, an additional US$2.5 million per month of
its senior secured note, at the same rate of 110% of the face amount. 

About Xinergy Ltd.

Headquartered in Knoxville, Tennessee, Xinergy Ltd., through its wholly
owned subsidiary, Xinergy Corp. is engaged in coal mining in eastern
Kentucky and West Virginia. Currently, Xinergy sells high quality coal
to electric utilities and industrial companies throughout the
south-eastern United States. For more information, please visit www.xinergyltd.com.

Forward-Looking Information 

This release contains “forward-looking information” that includes
information related to the acquisition of the Elk Horn membership units
and redemption of the senior secured note. Forward-looking information
should not be read as a guarantee of future performance or results and
will not necessarily be accurate indications of the times at, or by
which, that performance or those results will be achieved.
Forward-looking information is based on information available at the
time it is made and/or management’s good faith belief as of that time
with respect to future events, and such information is subject to risks
and uncertainties that could cause actual performance or results to
differ materially from those expressed in or suggested by the
forward-looking information. Important factors that could cause these
differences include but are not limited to: the business of the Company
may suffer as a result of uncertainty surrounding the acquired
membership units; the Company may be adversely affected by other
economic, business, and/or competitive factors; the worldwide demand
for coal; the price of coal; the price of alternative fuel sources; the
supply of coal and other competitive factors; the costs to mine and
transport coal; the ability to obtain new mining permits; the costs of
reclamation of previously mined properties; the risks of expanding coal
production; the ability to bring new mines on line on schedule;
industry competition; the Company’s ability to continue to execute its
growth strategies; and general economic conditions. These and other
risks are more fully described in the Company’s filings with the
Canadian Securities Administrators, including its Annual Information
Form, available on SEDAR at www.sedar.com. You should not put undue reliance on any forward-looking information.
We assume no obligation to update forward-looking information to
reflect actual results, changes in assumptions or changes in other
factors affecting forward-looking information, except to the extent
required by applicable securities laws. If we do update one or more
forward-looking information, no inference should be drawn that we will
make additional updates with respect to those or other forward-looking
information.

SOURCE Xinergy Corp.