Walter Energy Provides Update on Production Curtailment at Willow Creek Mine

Walter J. Scheller III, Chief Executive Officer of Walter Energy, Inc.(NYSE: WLT), today provided an update on the Company's decisionto curtail production at its Willow Creek mine."Over the past 18 months, since I became CEO, one of my key priorities hasbeen aggressive operational management," Mr. Scheller said. "While it isnever easy to curtail operations at a facility, our commitment to idleoperations where necessary is central to the Company's operating plan. Thisplan has been developed with the full support of our Board. "We greatly regret the impact this decision will have on many of ourdedicated employees," Mr. Scheller continued. "I would like to commend themfor their work in significantly improving our productivity and costs at themine over the past year. "The current price environment for met coal dictated that we curtailproduction at Willow Creek in order to ensure we generate a sufficienteconomic return in mining the high quality met coal reserves at the site.Given the tremendous progress that has been made in the cost structure atthe mine, when we see signs of sustainable market pricing conditions wewould expect to ramp up production," Mr. Scheller concluded. The mine, which will be curtailed in April, currently employs approximately350 employees, of which approximately 250 will be affected by the decisionto curtail production. The Willow Creek mine will continue with limitedoperations to support Walter Energy's Brule mine. Willow Creek is the fifth mine Walter Energy has announced plans to curtailor idle as part of its initiatives to address underperforming assets. Lastweek the Company said it was accelerating the closure of its North Riverunderground mine in Alabama. In addition, the Company has also idled theAberpergwm mine in South Wales and the Gauley Eagle underground and surfacemines in West Virginia, and has curtailed production at its Mapleunderground mine, also in West Virginia. As previously disclosed, the Company expects to record a one-time cashcharge of approximately $7.5 million in severance costs in connection withits curtailing production of the Willow Creek operations. The Companycurrently expects that full year 2013 metallurgical coal production will bein line with production levels in 2012. The Willow Creek surface mine, located near the town of Chetwynd inNortheast British Columbia, produces metallurgical coal with productionplans of one third hard coking coal and two thirds low-volatile PCI coalover the mine's expected 20-year life. The Willow Creek mine hadapproximately 19.0 million metric tons of recoverable coal reserves as ofDecember 31, 2012.