Phoenix Coal announces review of strategic alternatives
7/8/2009 1:55 PM - Canada NewsWire

LOUISVILLE, KY, Jul 8, 2009 (Canada NewsWire via COMTEX News Network) --

Phoenix Coal Inc. (TSX: PHC) ("Phoenix" or "the Company"), a leading producer and consolidator of thermal coal reserves in the Illinois Basin, announced today the Company has initiated a process to consider and respond to various strategic opportunities which may be available to the Company over the next few months including, but not limited to, asset sales, acquisitions, joint ventures and potential corporate transactions with other coal producers. Phoenix has retained Cormark Securities Inc. for the purpose of providing it with financial advice in evaluating these alternatives and executing any related transactions.

The Board of Directors of Phoenix Coal has established a Special Committee of directors to oversee the review process and make recommendations to the Board. The Company emphasized that there can be no assurance that any transaction or other alternative will ultimately be completed.

About Phoenix Coal Inc.

Phoenix Coal Inc. is an integrated mining company producing high sulphur, low chlorine, bituminous coal from the Illinois Basin. To address the increasing demand for energy in the Eastern United States as well as in the export market, Phoenix Coal is pursuing production growth through the focused acquisition, consolidation, and extraction of coal assets. Phoenix Coal currently operates surface coal mines in Muhlenberg County, Kentucky and a barge loading facility on the Green River. Development plans for additional surface operations, as well as an underground mine, are underway. The Company's executive offices are located in Louisville, KY and its operational headquarters are stationed in Madisonville, KY. For additional information, visit www.phxcoal.com.

FORWARD-LOOKING STATEMENTS

Certain information set forth in this press release contains "forward-looking statements", and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements which include management's assessment of Phoenix's future plans and operations and are based on Phoenix's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects" "anticipates", "believes", "projects", "plans", and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Phoenix's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: liabilities inherent in coal mine development and production; geological, mining and processing technical problems; Phoenix's inability to obtain required mine licenses, mine permits and regulatory approvals required in connection with mining and coal processing operations; dependence on third party coal transportation systems; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in commodity prices and exchange rates; changes in the regulations in respect to the use of coal; the effects of competition and pricing pressures in the coal market; the oversupply of, or lack of demand for, coal; currency and interest rate fluctuations; various events which could disrupt operations and/or the transportation of coal products, including labor stoppages and severe weather conditions; the demand for and availability of rail, port and other transportation services; and management's ability to anticipate and manage the foregoing factors and risks. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Phoenix undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

<< The TSX has neither approved nor disapproved of the contents of this press release. >>

SOURCE: Phoenix Coal Inc.

Joanna Longo, The Equicom Group, Investor Relations, (416) 815-0700 ext. 233, [email protected]

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