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National Coal Corp. Recoups $1.9 Million Insurance Claim Filed As a Result of First Quarter Highwall Miner Repairs

Posted on: Tuesday, 19 September 2006, 15:00 CDT

National Coal Corp. (Nasdaq: NCOC), a Central Appalachian coal producer, announces that it will receive approximately $1.9 million from its insurance provider to cover the full cost of repair to its highwall miner, minus a $50,000 deductible, which was damaged in March as a result of a rock collapse.

During the first quarter of 2006, $1.8 million of the $1.9 million in repairs to the highwall miner were expensed. Those costs, plus the related "downtime" and lost production, significantly contributed to that period's net loss of $7.7 million. The remaining $100,000 was expensed in the second quarter 2006. The claim was initially denied, but the insurance provider has since agreed to pay the $1.9 million claim, minus the $50,000 deductible under the policy. The highwall miner has been back in service since July.

National Coal is also in discussion with a second insurance provider on a related claim pertaining to a front-end loader that was totaled in the same March 2006 rock collapse. The Company expects this second claim to be resolved in its favor before the end of the fourth quarter of 2006.

About National Coal Corp.

Headquartered in Knoxville, Tenn., National Coal Corp., through its wholly-owned subsidiary, National Coal Corporation, is engaged in coal mining in East Tennessee and Southeastern Kentucky. Currently, National Coal employs more than 250 people and produces coal from five mines in Tennessee and three mines in Kentucky. National Coal sells steam coal to electric utilities in the Southeastern United States. For more information visit www.nationalcoal.com.

Source: Business Wire

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