Patriot Coal Completes Acquisition of Magnum Coal Company

ST. LOUIS, July 23 /PRNewswire-FirstCall/ -- Patriot Coal Corporation
(NYSE: PCX) today announced the completion of its acquisition of Magnum Coal
Company ("Magnum"). Under the terms of the Agreement and Plan of Merger (the
"Merger Agreement"), dated as of April 2, 2008, among Patriot, Magnum, Colt
Merger Corporation, and ArcLight Energy Partners Fund I, L.P. and ArcLight
Energy Partners Fund II, L.P., acting jointly as the Stockholder
Representative, Magnum's stockholders received approximately 11.9 million
shares of newly-issued Patriot Coal common stock. Additionally, Patriot
assumed net debt of approximately $136.5 million, bringing the total
acquisition price to approximately $695 million, based on the April 2, 2008
closing price of Patriot common stock. The company repaid the assumed net
debt in full, using the proceeds from the previously-announced convertible
debt offering.
The Magnum transaction is aligned with Patriot's strategy to grow through
synergistic, accretive acquisitions. The combination further broadens
Patriot's asset base and significantly increases the company's surface mining
capabilities. Additionally, Magnum's high-margin metallurgical coal
production will raise the company's total met production to 7.0 to 8.0 million
tons for 2008.
"We are pleased to welcome Magnum and its 1,700 skilled employees to the
Patriot family. This represents an excellent strategic fit for Patriot,
bringing together two companies that share a significant business presence in
the eastern United States, a similar operating culture and a strong commitment
to mine safety. Importantly, the Patriot and Magnum properties are
contiguous, which creates numerous synergistic opportunities," said Patriot
Chief Executive Officer Richard M. Whiting. "Going forward, as the seventh
largest coal producer in the U.S., we are poised to fully participate in very
strong coal markets."
The company's corporate headquarters will remain in St. Louis, while its
operations will be headquartered in Charleston, West Virginia. Patriot has
announced its management structure following the acquisition of Magnum.
Reporting to Richard Whiting, Chief Executive Officer, are Paul H. Vining,
President & Chief Operating Officer; Mark N. Schroeder, Senior Vice President
& Chief Financial Officer; Joseph W. Bean, Senior Vice President, General
Counsel & Corporate Secretary; Charles A. "Chuck" Ebetino, Jr., Senior Vice
President of Corporate Development; and K. Susan Billiot, Senior Vice
President of Human Resources.
Reporting to Mr. Vining are Michael V. Altrudo, Senior Vice President &
Chief Marketing Officer; John C. Hill, Vice President & General Manager,
Southern Appalachian Underground Operations; Michael D. Day, Vice President of
Appalachian Surface Operations; David L. Webb, Vice President & General
Manager, Kentucky Operations; J. Blair McGill, Vice President & General
Manager, Federal Operations; Gary W. Halstead, Vice President of Engineering
and Terry G. Hudson, Vice President of Safety.
About Patriot Coal
Patriot Coal Corporation (the "Company") is the third largest producer and
marketer of coal in the eastern United States, with 21 Company-operated mines
and numerous contractor-operated mines in Appalachia and the Illinois Basin.
The Company ships to domestic and international electric utilities, industrial
users and metallurgical coal customers, and controls approximately 1.9 billion
tons of proven and probable coal reserves. The Company's common stock trades
on the New York Stock Exchange under the symbol PCX.
Forward Looking Statements
Certain statements in this press release are forward-looking as defined in
the Private Securities Litigation Reform Act of 1995. These statements
involve certain risks and uncertainties that may be beyond our control and may
cause our actual future results to differ materially from expectations. We do
not undertake to update our forward-looking statements. Factors that could
affect our results include, but are not limited to: changes in laws or
regulations; changes in general economic conditions, including coal and power
market conditions; the outcome of commercial negotiations involving sales
contracts or other transactions; the Company's dependence on coal supply
agreements with Peabody Energy Corporation in the near future; geologic,
equipment and operational risks associated with mining; supplier and contract
miner performance and the availability and cost of key equipment and
commodities; the Company's ability to replace coal reserves; labor
availability and relations; availability and costs of transportation; weather
patterns affecting energy demand; legislative and regulatory developments;
risks associated with environmental laws and compliance; the outcome of
pending or future litigation; and the availability and costs of competing
energy resources. The Company undertakes no obligation (and expressly
disclaims any such obligation) to publicly update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise. For additional information concerning factors that could
cause actual results to materially differ from those projected herein, please
refer to the Company's Form 10-K, 10-Q and 8-K reports.
SOURCE Patriot Coal Corporation

Janine Orf of Patriot Coal Corporation, +1-314-275-3680