Issue of Equity

Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining

5 August 2010

Atlantic Coal plc ('Atlantic' or the 'Company')

Placing to raise £1,710,000 & operational update

Atlantic Coal plc, the AIM listed open cast coal production and processing company with activities in Pennsylvania, USA, has conditionally raised £1,710,000 (before expenses) through the placing of 427,500,000 new ordinary shares (the 'Placing Shares') at a price of 0.4p per Placing Share, with certain new and existing shareholders (the 'Placing'). In addition, one warrant to subscribe for a new ordinary share is being issued to Placees for every Placing Share subscribed for (the 'Warrants'). The Warrants are exercisable at 0.65p per new ordinary share for a period of two years from the date of admission of the Placing Shares to trading on AIM. Pursuant to the Placing, three of the Company's directors, being Adam Wilson, Steve Best and Peter Chinneck, have subscribed for an aggregate of 150,000,000 Placing Shares.

The funds raised will be used to complete the last stage of infrastructure works at the Company's primary asset, the Stockton Colliery ('Stockton'), a producing surface coal mine and adjacent anthracite preparation plant, and for working capital purposes, including completion of the railway line diversion. Atlantic is committed to increasing the production of saleable washed anthracite product from 250,000 to up to 500,000 tons of run-of-mine ('ROM') coal per annum. Stockton has a current reserve of 4.2 million tons ROM coal, equating to approximately 2.1 million tons of washed anthracite product. Additionally, part of the funds raised will be used to refinance the Company's debt. 

Following the recent addition of the Liebherr excavator at Stockton, access to the high quality anthracite found in the Stockton basin has been greatly improved and the production profile at Stockton is increasing significantly with the quantity of overburden being removed on site increasing by more than 20%. To cater for the rise in ROM coal and to service the current high demand for coal in the US, Atlantic will be increasing its coal washing facility to double-shift.

Atlantic's Managing Director, Steve Best, today said, "In addition to our increased production capacity we are experiencing strong summer sales, and with this in mind, the Board is committed to maximising upon this opportunity using the funds raised in the Placing. The coal market in the US is currently buoyant, and the demand for anthracite seems to be rising and the price hardening. The Board remains centred on developing Stockton, having already effectively implemented a new mine plan to increase efficiencies at the mine, and is confident that production numbers and sales will continue to increase. 

"The process of turning around the Stockton Mine has been more difficult than originally anticipated but the recent developments demonstrate that the project has been worthwhile."

The subscription by Adam Wilson, Steve Best and Peter Chinneck (the 'Related Parties') is a related party transaction, as defined by Rule 13 of the AIM Rules for Companies. Accordingly, the independent directors (being Gregory Kuenzel and Toby Howell), having consulted with the Company's nominated adviser, Allenby Capital Limited, consider that the terms of the Placing and the Related Parties' participation are fair and reasonable in so far as the Company's shareholders are concerned. 

On completion of the Placing the following changes will occur to the beneficial interests of the directors in the ordinary share capital of the Company.

* Steve Best's participation in the Placing is being done through his spouse, Mary Best.

As part of the Placing, subscribers will receive one warrant to subscribe for a new ordinary share in the Company for every Placing Share subscribed for in the Placing. The Warrants have an exercise price of 0.65p per new ordinary shares and are valid for a two year period from the admission of the Placing Shares to AIM. 

The Placing Shares represent approximately 22% of Atlantic Coal's enlarged issued share capital. Application will be made for the admission of the Placing Shares to trading on AIM and it is expected that dealings in the new shares will commence at 8 am on 11 August 2010. The Placing Shares will, when issued, rank pari passu in all respects with the existing ordinary shares of the Company, including the right to receive dividends and other distributions declared following Admission.

Following completion of the Placing, there will be 1,913,346,350 ordinary shares of 0.07 pence each in issue.

**ENDS**

For further information on the Company, visit: www.atlanticcoal.com or contact:

Notes

Atlantic Coal Plc is an AIM listed coal production and processing company focussed predominantly on open cast mining and the processing of anthracite coal in Pennsylvania, USA. The Company's primary asset is the Stockton Colliery, a producing surface coal mine and adjacent anthracite preparation plant encompassing an area of approximately 900 hectares located in Hazel Creek in North-East Pennsylvania, which has current Proven Reserves of 4.2 million tons run-of-mine ('ROM') coal.

Atlantic Coal's strategy is to create a significant mid-tier coal company; both through the expansion of activities at the Stockton anthracite mine and identifying additional sites in Pennsylvania to build its production and resource profile, primarily by acquiring defined assets in stable, recognised, high quality coal regions. The Board has identified opportunities to expand within the region and is involved in ongoing negotiations regarding adjacent sites, with the intention of acting as a regional consolidator in the Pennsylvanian Coal Field. Expansion within the local area has the potential to minimise upfront deal costs as a result of existing and proven infrastructure, equipment, facilities and market demand.