Patriot Coal to Further Reduce Thermal Coal Production

Patriot Coal Corporation

today announced actions to further reduce thermal coal production in response to continued weakness in market demand. The Company disclosed the planned idling of the Freedom underground mine and, pursuant to the WARN Act, gave 60-day notice today to affected employees. The Freedom mine is located in the Bluegrass complex near Henderson, Kentucky and produced 1.2 million tons of thermal coal in 2011. Following this action, Patriot will have no remaining uncommitted Illinois Basin thermal coal for 2012 delivery. "Thermal coal markets remain weak as a result of the mild winter, coupled with low natural gas prices and reduced demand for electricity related to the economic downturn. We are taking this step to align production with committed sales," stated Patriot Executive Vice President & Chief Operating Officer Bennett K. Hatfield. "Additionally, during the first quarter, we idled three smaller Central Appalachian thermal coal mines that together produced about 1.2 million tons in 2011. In total, including today's announcement and the previously announced closure of the Big Mountain complex, we have reduced Patriot's annual thermal production by more than 4 million tons compared with 2011."