PHOENIX COAL INC.

Phoenix Coal Inc. announced today its financial results for the three- and nine-month periods ended September 30, 2009. On September 30, 2009, the company sold substantially all of its surface coal mining assets to a privately-owned Ohio-based coal producer, Oxford Mining Company, LLC for total consideration of approximately $32.2 million. For the three and nine months ended September 30, 2009, the Phoenix’s net loss was approximately $1.3 million and $53.0 million, respectively. The loss on the sale of the surface mining operations contributed approximately $36.2 million to the total year-to-date loss. At September 30, 2009, Phoenix had approximately $17.4 million (C$18.7 million) in cash, cash equivalents and short-term investments. The company also had restricted cash, cash equivalents and certificates of deposit as collateral for letters of credit for reclamation bonding and escrowed funds from the sale of its surface mining operations in the amount of $14.4 million (C$15.5 million).