New excavator to increase production capacity

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

26 April 2010

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

New excavator to increase production capacity

Atlantic Coal plc, the AIM listed open cast coal production and processing company with activities in Pennsylvania, USA, announces that the Liebherr R9250 21-yard bucket hydraulic excavator it recently purchased for $3.5 million has arrived at its Stockton Colliery ('Stockton'). The new excavator will increase production capacity at the Stockton coal mine, which encompasses an area of approximately 900 hectares located in Hazel Creek in north-east Pennsylvania, a region renowned for anthracite.

Increasing production at the Stockton Colliery is a key focus for the Company. The site, mined at various times from the 1900s, has an abundance of high quality anthracite in close proximity to the surface, making it ideal for the Liebherr R9250 to increase production. The equipment was ordered following the implementation of a new mine plan to develop the current reserves of 4.2 million tons run-of-mine ('ROM') coal, with the intention of raising production levels to 400,000 ROM tons per annum.

Atlantic Coal Managing Director Steve Best said, "In line with our strategy of increasing production at the Stockton Colliery, we purchased the Liebherr excavator and anticipate that it will have a positive impact on our production capacity and help reduce our cost base going forward. This is a significant step for the Company especially when viewed in conjunction with our recently announced agreement with US coal marketing company Xcoal, which provides a potential buyer for up to half of our annual output, opening up international markets for our anthracite."

Photographs of the new excavator can be viewed on the Company's website at www.atlanticcoal.com.

**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.