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Alpha Natural Resources Joins Virginia Department of Transportation on Coalfields Expressway Project

Posted on: Thursday, 19 January 2006, 18:00 CST

ABINGDON, Va., Jan. 19 /PRNewswire-FirstCall/ -- Alpha Natural Resources, Inc. has agreed to join the Virginia Department of Transportation (VDOT) and others in advancing the proposed 51-mile Coalfields Expressway project, connecting southwestern Virginia counties to the West Virginia Expressway.

In a press conference jointly held in Richmond and Abingdon today, involving state transportation officials and a bipartisan delegation of local legislators, Virginia's Transportation Secretary Pierce Homer told reporters that VDOT was moving forward on the Coalfields Expressway project with Alpha Natural Resources, LLC and Pioneer Group, Inc., another southwest Virginia natural resource company.

Alpha and Pioneer will use coal recovery opportunities to lower the cost of building the base roadbed for the project.

"This is a high priority for the Commonwealth," Homer said. "We believe that the partnership with Alpha and Pioneer will help us bring down some of the cost estimates. We look forward to a real strong and viable business partnership in the coming years."

Alpha's acquisition of the Nicewonder Coal Group in October included the acquisition of a road construction and coal recovery business that is currently working on an 11-mile segment of the 90-mile King Coal Highway in southern West Virginia. Over the life of the project, Alpha expects to recover approximately 3 million tons of coal for use by electrical utilities while creating a rough-grade road base for the four-lane highway. Alpha plans to use this road construction and coal recovery business as a template for the project announced today in Virginia.

"We're going to be able to draw on the work that Don Nicewonder and the Nicewonder group initiated in West Virginia on the King Coal Highway that established a lot of the parameters we'll be able to use in Virginia," said Michael J. Quillen, president and CEO of Alpha Natural Resources. "It's a great opportunity for economic development, tourism, safe travel for residents, and also an opportunity for our employees going forward."

The planned Coalfields Expressway will be a new four-lane highway stretching 51 miles from Pound in Wise County, through Dickenson and Buchanan counties. It will link with the West Virginia Coalfields Expressway near Paynesville, West Virginia. Alpha estimates that approximately 31 miles of the planned expressway traverses land where the company controls underlying coal mineral rights.

Under Virginia's Public Private Transportation Act (PPTA), Alpha and Pioneer will work with VDOT on a new comprehensive agreement to reflect the highway being built in conjunction with the development of Alpha and Pioneer coal reserves. In addition, the parties will seek to work with the Federal Highway Administration for the use of federal funds on the project.

Kellogg Brown and Root recently completed preliminary design and engineering for Section A of the corridor. VDOT's estimate to build the project is approximately $2.3 billion.

About Alpha Natural Resources

Alpha Natural Resources is a leading producer of high-quality Appalachian coal. Approximately 92 percent of the company's reserve base is high Btu coal and 90 percent is low sulfur, qualities that are in high demand among electric utilities which use steam coal. Alpha is also one of the nation's largest producers and exporters of metallurgical coal, a key ingredient in steel manufacturing. Alpha and its subsidiaries currently operate mining complexes in four states, consisting of 69 mines feeding 11 coal preparation and blending plants. The company and its subsidiaries employ approximately 3,200 people.

ANRG Forward-Looking Statements

Certain statements in this news release are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Alpha Natural Resources, Inc. ("Alpha" or "the company") uses the words "anticipate,""believe,""could,""should,""estimate,""expect,""intend,""may,""predict,""project,""target" and similar terms and phrases, including references to assumptions, to identify forward-looking statements. These forward-looking statements are based on Alpha's expectations and beliefs concerning future events affecting the company and involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release. These factors are difficult to accurately predict and may be beyond the control of the company. The following factors are among those that may cause actual results to differ materially from our forward-looking statements: market demand for coal, electricity and steel; our ability to integrate the Nicewonder acquisition into Alpha's existing operations; our ability to maintain an adequate labor force and other employee workforce factors; weather conditions or catastrophic weather-related damage; the company's production capabilities; the company's relationships with, and other conditions affecting its customers; the timing of reductions or increases in customer coal inventories; long-term coal supply arrangements; environmental laws, including those directly affecting Alpha's coal mining and production, and those affecting its customers' coal usage; railroad, vessel and other transportation performance and costs; Alpha's assumptions concerning economically recoverable coal reserve estimates; regulatory and court decisions; future legislation and changes in regulations or governmental policies; uncertainties of pending litigation; changes in postretirement benefit and pension obligations; and Alpha's liquidity, results of operations and financial condition. These and other additional risk factors and uncertainties are discussed in greater detail in the company's Annual Report on Form 10-K, registration statement on Form S-1 (file no. 333- 129030) and other documents filed with the Securities and Exchange Commission. Forward-looking statements made by the company in this news release or elsewhere speak only as of the date made. New uncertainties and risks come up from time to time, and it is impossible for the company to predict these events or how they may affect the company. The company has no duty to, and does not intend to, update or revise the forward-looking statements in this news release after the date it is issued. In light of these risks and uncertainties, investors should keep in mind that the results, events or developments disclosed in any forward-looking statement made in this news release may not occur.

First Call Analyst: FCMN Contact: hhuie@financialrelationsboard.com

Alpha Natural Resources, Inc.

CONTACT: Ted Pile of Alpha Natural Resources, Inc., +1-276-623-2920

Source: PRNewswire-FirstCall

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