Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining 13 April 2010 Atlantic Coal plc (Atlantic or the Company) Agreement with US Coal Marketing Company
Atlantic Coal plc, the AIM listed open cast coal production and processing company with activities in Pennsylvania, USA, has signed a strategic memorandum of understanding with Xcoal Energy & Resources (Xcoal), a private US coal marketing company, to supply premium anthracite from Atlantics Stockton Mine in Pennsylvania.

Prior to signing of the agreement, Xcoal, which specialises in the export of US metallurgical coal to steel makers throughout the world, has taken an initial tranche of 5,000 tons of premium anthracite.

Additionally, the two parties have mutually agreed to evaluate opportunities for Xcoals potential participation in funding the expansion of both the Stockton Mine and additional mining opportunities, which would further solidify the relationship between the two parties.
Atlantic Coal Managing Director Steve Best said, "This agreement with Xcoal, which has significant strategic supply agreements particularly with major integrated steel makers in both the Atlantic and Pacific regions, marks a positive step forward for Atlantic and is recognition of the quality of our anthracite production at Stockton.

With Xcoal indicating that it will look to take up to half of our targeted annual run-of-mine production of coal, the positive impact on sales and the resulting cash flow is clearly evident.

Xcoals participation in the future of Stockton fits well with our long term development plans, particularly given its international reach and we believe that the relationship will be highly beneficial for the future of the Company."
Xcoal is a highly active and expanding coal marketing company specialising in the export of US metallurgical coal to the Japanese, Chinese, Korean, and European metallurgical markets.

To facilitate its activities, Xcoal has contracted significant capacity at the CNX Marine Terminal in Baltimore and at Hampton Roads on the US east coast in Virginia.


Under the terms of the memorandum of understanding, Xcoal has agreed to purchase up to the greater of 150,000 tons per year or 50% of Stocktons annual anthracite coal production.


**ENDS**
For further information on the Company, visit: www.atlanticcoal.com or contact:
Steve Best Atlantic Coal plc Tel: 020 3328 5670 Greg Kuenzel Atlantic Coal plc Tel: 020 3328 5670 Nick Naylor Allenby Capital Limited Tel: 020 3328 5656 Alex Price Allenby Capital Limited Tel: 020 3328 5656 Daniel Fox Davies Fox Davies Capital Ltd Tel: 020 7936 5230 Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7236 1177 Paul Youens St Brides Media & Finance Ltd Tel: 020 7236 1177
Elisabeth Cowell St Brides Media & Finance Ltd Chaucer House 38 Bow Lane London EC4M 9AY T: +44 (0) 207 236 1177 | M: +44 (0) 7769 658 654 | F: +44 (0) 207 236 1188 | www.sbmf.co.uk
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