New Equipment to Boost Coal Production in US

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

13 April 2011

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

New Equipment to Boost Coal Production in US

Atlantic Coal plc, the AIM listed open cast coal production and processing company with activities in Pennsylvania, USA, is pleased to announce that in order to continue to increase the run-of-mine ('ROM') production profile at its Stockton Colliery, a producing opencast anthracite operation in Pennsylvania ('Stockton'), it has ordered a second Liebherr R9250 19-yard bucket hydraulic excavator ('Liebherr'). The new Liebherr will cost US$3.75 million and this will be funded through a conventional lease purchase agreement.

The first Liebherr, purchased in 2010, has made a significant impact on production at Stockton, as highlighted by the recent update on 7 April 2011 which saw 120.85kt of ROM coal produced and 658.785k bank cubic yards of overburden removed during the quarter. The second Liebherr, which will significantly enhance excavation capacity and facilitate the increase of ROM tons supplied to the wash plant, is due at Stockton by the end of 2011 and the Board plan to have it operational during the first quarter of 2012. Its arrival will coincide with the completion of restoration work at the Company's Gowan site, 20 km from Stockton, which will free two Cat 777 trucks and provide additional haul truck capacity for the two Liebherr excavators. Working capital resources devoted to Gowan's reclamation will also be redirected. The Company remains on target to produce its estimated 450-500,000 ROM tons per annum.

Atlantic Managing Director Steve Best said, "The first Liebherr R9250 has bolstered our production profile considerably since its delivery a year ago and I am confident that we will benefit from another excavator on site to increase our efficiency and excavation capacity. This will allow us to increase our production of ROM coal to the wash plant and maximise the 4.2 million tons defined anthracite reserves at Stockton. Furthermore we continue to assess additional opportunities as we look to increase our critical mass and become a leading coal producer in the Pennsylvania Anthracite Field."

**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 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.