BACK IN BLACK (WYNN NORTH)

Phoneic coal announced that it has entered into a definitive agreement to sell the company’s ongoing surface mining business and reserves primarily in Muhlenberg County, Kentucky, to a significant privately-owned, Ohio-based coal producer.

Phoenix Coal reported that during the first 6 months of the year Briar Hill/Radio Hill produced a total of 296,154 tons. Water inflow from portions of Radio Hill’s overburden decreased during the quarter, contributing to the production increase at this location. The Back in Black mine produced 42,583 tons in the quarter ended June 30, 2009, a decrease of 23,022 tons from 65,605 produced tons for the similar period in 2008. The mine had been idled for eight months after it had mined through its permit area in June 2008 and resumed production in February 2009. In the second quarter 2009, Back in Black encountered old works in the west end of its pit creating a shorter, less productive pit length. These conditions, coupled with permit boundary restrictions, constrained the space available for overburden removal. KO mine was originally scheduled to begin production in March 2009, but was delayed until late May due to permit issues. As production began, mining was slow as a mud slip and an eighteen inch parting were encountered limiting production to 25,162 tons in the quarter ended June 30, 2009. The Jessup mine had its highest productivity month, producing 21,882 tons in May 2009 and 61,852 tons for the quarter ended June 30, 2009, making Jessup the second highest producing mine for the second quarter 2009.

Phoenix Coal reported that during the first quarter, the company produced 492,530 tons from five mines. Briar Hill remained the largest operation, producing 241,081 tons. Back in Black, which resumed production in February 2009 after being idled for eight months due to permit delays, produced 30,007 tons. Radio Hill, a new mining area at the Briar Hill Mine, began production in January 2009 and contributed 50,025 tons. The remaining production was sourced from the Beech Creek and Jessup mines, which contributed 109,701 and 61,716 tons, respectively. Production during the quarter was impacted by a severe ice storm that crippled Western Kentucky in January and cost the company an estimated 50,000 to 60,000 tons of production.