Black Diamond Files Plan to Emerge from Chapter 11 and Announces Withdrawal of Chapter 7 Conversion Motion

PRESTONSBURG, Ky.--(Business Wire)--
Black Diamond Mining Company, LLC and its affiliates ("Black Diamond" or the
"Company"), a producer of steam and stoker coal in Central Appalachia, announced
that it has filed a restructuring plan and disclosure statement with the United
States Bankruptcy Court for the Eastern District of Kentucky (the "Bankruptcy
Court") that outlines how Black Diamond proposes to emerge from Chapter 11.

The Company`s plan has the support of the Company`s senior lenders, its accounts
receivable lender and several entities affiliated with the estate of Ross Harris
that are Black Diamond`s largest mineral rights lessors.

In addition, the Company is pleased to announce the withdrawal of the previously
filed motion to convert the Black Diamond case from a Chapter 11 restructuring
to a Chapter 7 liquidation.

"The filing of the plan and disclosure statement, and the withdrawal of the
conversion motion, represent significant steps forward in our efforts to emerge
from Chapter 11," said Ira J. Genser, Managing Director of Alvarez and Marsal
and the Bankruptcy Court-appointed Chief Restructuring Officer. Under the terms
outlined in the plan and disclosure statement, the Company`s senior lenders will
submit a bid for substantially all of the Company`s assets. If successful, the
senior lenders would own a significant majority of the Company`s equity upon
emergence. As required by the Bankruptcy Code, the bid will be subject to higher
and better offers. The Company intends to conduct a Bankruptcy Court-supervised
auction within the next two months. Black Diamond anticipates that additional
information regarding the plan and auction process will be filed with the
Bankruptcy Court in the next two weeks.

Larry W. Hull, Chief Executive Officer and President of Black Diamond, added,
"Thanks to the loyalty of Black Diamond`s customers and the dedication of its
employees, we have made significant progress toward emerging from Chapter 11
despite challenging market conditions. Further, the withdrawal of the conversion
motion should resolve any concerns about liquidation or doing business with
Black Diamond long term. I am optimistic that Black Diamond will exit bankruptcy
as a going concern during the first half of 2009."

About Black Diamond

Black Diamond, headquartered in Prestonsburg, Kentucky, produces and markets
Central Appalachian steam and stoker coal for consumption by electric utilities
and industrial concerns in the central and southeastern United States. Black
Diamond`s annual production is approximately 1.5 million tons.

Inquiries should be directed to Richard W. Morgner of Miller Buckfire & Co.,
LLC, the Company's financial advisor, at (212) 895-1833.

Miller Buckfire & Co., LLC
Richard W. Morgner, 212-895-1833

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