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Alliance Coal acquires Illinois Basin Coal Assets

5 April 2012

Alliance Resource Partners' wholly-owned subsidiary Alliance Coal has completed the acquisition of all of the coal related assets of Green River Collieries located in Kentucky, US, for an undisclosed sum.

The transaction includes an estimated 40 million tonnes of coal reserves in the West Kentucky No. 9 coal seam and the Onton No. 9 mine located near the city of Sebree.

Alliance Resource Partners president and chief executive officer Joseph W Craft III said the acquisition of Green River provides an attractive addition to ARLP's existing operations in the growing market for Illinois Basin coal.

"Ongoing expansion of scrubber capacity by US utilities supports our view that demand for Illinois Basin and northern Appalachian coal will continue to increase," Craft said.

"We remain committed to ARLP's mission of creating exceptional value for our unitholders, through sustainable cash flow growth and increases in unitholder distributions."

The underground mining complex operates three continuous mining units employing room-and-pillar mining techniques.

An air shaft is currently under construction, which would allow the addition of a fourth continuous mining unit, should market conditions warrant increased production from the mine.