Q2 2015 Production and Sales Update

Atlantic Coal plc ("Atlantic Coal")

Q2 2015 Production and Sales Update and

Stockton Mine Development Update

Atlantic Coal, the AIM listed anthracite coal mining company operating in Pennsylvania, USA, is pleased to provide a positive production and mine update for the quarter ended 30 June 2015. Atlantic Coal owns and operates the Stockton Anthracite Mine ("Stockton") which is located near Hazleton, Pennsylvania.

Highlights

· 12% increase in Run of Mine ("ROM") anthracite production of 160,583 tons, an increase on Q1 2015 (136,981 tons) and reflecting a total production of approximately 300,000 tons of high quality ROM from the last basin cut in the Mammoth seam mined in the period from December 2014 to May 2015.

· Clean coal production remained strong at 45,129 tons, despite 16 days of downtime for improvements to the washing plant (Q1 2015: 45,669 tons).

· Clean coal stockpile of 24,463 tons compared to 12,210 tons in Q2 2014.

· 120% increase in ROM stockpile, at 103,047 tons (Q2 2014: 46,367 tons).

· Overall sales were up considerably on last year due to the commencement of ROM sales in Q1 2015. The combined sales figure was 61,684 tons (this included 38,851 tons of clean coal and 22,833 tons of ROM coal, and compares to clean coal sales of 39,298 tons in Q2 2014).

· Combined ROM and clean coal sales showed an increase of 39% on last quarter (Q1 2015: 44,356 tons).

· Overburden removal during the period increased by 129% year on year, with the removal of 1,131,460 bank cubic yards primarily due to the new Komatsu PC-3000 excavator and fleet of dump trucks (Q2 2014: 494,986).

Production Summary Q2 2015:

Atlantic Coal's Managing Director Steve Best said: "Despite the usual fall in demand during the spring, we have managed to achieve a healthy level of coal sales levels thanks to the decision by the Board to start selling ROM coal in addition to our usual clean coal sales. We have also built on our stockpile levels ready for the winter season - both our clean coal and ROM stockpiles are double the level they were at this time last year (Q1 2015: 103,047 tons ROM and 24,463 tons of clean coal compared to Q2 2014: 46,367 tons ROM and 12,210 tons of clean coal).

 "The new Komatsu machinery we took delivery of in 2014 and early in 2015 and improved mining conditions in the Mammoth seam are having a positive effect on production. ROM anthracite production increased by 63% year on year, and overburden removal increased by an impressive 129%. Clean coal production remained strong at 45,129 tons but was lower than would otherwise have been the case due to 16 days of downtime at the washing plant for refurbishment and improvements, notably the installation of a new larger capacity barrel. I would also like to commend the hard work of our engineering team at Stockton for minimising the downtime on the washing plant and ensuring that the equipment improvements were quickly and effectively operational. Indeed, early indications on the washing performance are very encouraging with wash recovery rates now in excess of 60%.

With our production capability, improved mining conditions and a healthy clean coal and ROM inventory the Directors look forward with confidence to the second half of the year and the winter season when we anticipate an increase in both sales volumes and prices."

**ENDS**

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