National Coal Corp. Reports First Quarter 2009 Results

* Average realized sales price increased 25% to $72.68 per ton versus $57.96 per
ton during the year ago quarter.
* Tons of coal sold decreased 23.4% to 469,012 tons, from 612,159 tons during
the year-ago quarter.
* First quarter revenues decreased to $35.1 million from $35.7 million during
the year-ago quarter.
* At March 31, 2009, the Company had cash and cash equivalents of approximately
$2.9 million and negative working capital of approximately $11.9 million. Cash
flows provided by operations were $4.5 million and $3.0 million for the three
months ended March 31, 2009, and 2008, respectively.
* On April 9, 2009, the Company executed an agreement with a lender to provide a
First Lien Credit Facility for $10.0 million which matures on December 15,
2009.

KNOXVILLE, Tenn.--(Business Wire)--
National Coal Corp. (Nasdaq: NCOC), a Central and Southern Appalachian coal
producer, reports that for the period ended March 31, 2009, it achieved total
revenues of $35.1 million based primarily on the sale of 469,012 tons of coal.
In the same prior-year period, National Coal generated revenues of $35.7 million
primarily through the sale of 612,159 tons of coal.

National Coal President and CEO, Daniel A. Roling said the decline reflects the
state of the industry over the last year. "The coal market has pulled back from
2008, when prices set record highs. Coal production also set a high of 1.17
billion tons, an increase of only 0.6% from the prior record set in 2006. The
significance of this may take some time to be fully recognized, but the
inability of the coal industry to increase production in a meaningful manner in
the short-term is quite evident."

Roling also stated, "Our ability to produce coal during the first quarter, and
thus our costs, were heavily impacted by mine closures and the transition into
new mines in Tennessee and Alabama as well as continuing poor weather at our
Alabama surface mining operations. We did not achieve our anticipated levels of
production during the quarter. However, our production levels have increased
since March and are on track to achieve anticipated levels. I believe that,
barring unforeseen events, our costs should decline going forward."

For the three months ended March 31, 2009, National Coal reported a net loss of
$7.9 million or $0.23 per share versus a net loss of $10.1 million or $0.36 per
share during the year ago quarter. The Company also reported an improved and
positive adjusted EBITDA of $0.8 million versus a negative adjusted EBITDA of
$0.4 million reported in the year-ago quarter.

For the three months ended March 31, 2009, the Company produced 0.38 million
tons of coal, 21.4% less than during the year ago quarter. However, production
during the first quarter of 2008 included about 0.1 million tons of production
from the Straight Creek mining operations, which were sold in the first quarter
of 2008. Approximately 20.8% of its production originated from underground mines
and 79.2% was produced at its surface and highwall mining operations.
"Previously anticipated levels of production are not likely given current market
conditions," said Roling, "but production is still expected at levels necessary
to meet all of our contractual commitments."

The Company realized significantly higher prices for coal sold during the first
quarter versus the year ago period. The average realized sales price increased
25.4% during the first quarter to $72.68 per ton from $57.96 during the year ago
quarter, and 11.8% from the 2008 full year average.

Looking forward, the Company has committed 1.9 million tons for the full year
2009 at an average contractual price of $76.01 per ton, 1.2 million tons for the
full year 2010 at an average contractual price of $76.74 per ton, and 0.3
million tons for the full year 2011 at an average contractual price of $77.70
per ton. At March 31, 2009, the Company`s un-priced and uncommitted future
production was approximately 0.2 million tons in 2009, 0.9 million to 1.3
million tons in 2010, and 2.6 million tons in 2011.

Roling said, "The current weak market condition has offered the Company the
opportunity to purchase coal to supplement its production, which has fallen
short of projections. This opportunity has contributed to a 41.8% increase in
accounts payable during the quarter to $19.5 million from $13.8 million at year
end 2008."

Capital expenditures for 2009 are estimated to be in the range of $13.0 to $16.0
million. Year-to-date, National Coal has invested approximately $4.1 million in
equipment and mine development during the three months ended March 31, 2009. For
the remainder of 2009, management expects to finance $5.9 million of capital
expenditures to replace mining equipment and incur an additional $3.6 million to
maintain existing assets.

The Company executed an agreement with Next View Partners, LLC on April 9, 2009
to provide a First Lien Credit Facility for $10.0 million, as permitted by the
provisions of its Senior Secured Debt Facility that matures in December 2010.
The terms of this agreement provide up to $10.0 million to be used for general
corporate purposes at an annual rate of 13% for amounts outstanding up to $5.0
million and an annual rate of 15% for amounts outstanding greater than $5.0
million. The collateral securing the debt facility is substantially all the
assets of the Company`s Tennessee mining operations. This facility cannot be
used to fund the working capital needs of NCA. This agreement currently expires
December 15, 2009.

Outlook

Roling stated that "Both prices and volumes should continue to gradually
increase as we progress through the year, as we continue to meet our contractual
commitments. The intermediate-term future holds many challenges and
opportunities, and we believe that we are well positioned to capitalize on
them."

The demand for coal has abated as demand for electricity has declined in line
with the weak economy. In addition, the current low price for natural gas has
made it advantageous for some consumers of coal to switch fuels for their source
of energy. This has contributed to a decline in demand and prices for coal in
the intermediate-term. We remain optimistic on the outlook for coal as demand
for electricity is anticipated to recover along with the economy. National Coal
has the production capability to meet its contractual sales position, and to
participate in an anticipated stronger market when demand for coal recovers.

About National Coal Corp.

Headquartered in Knoxville, Tenn., National Coal Corp., through its wholly owned
subsidiary, National Coal Corporation, is engaged in coal mining in East
Tennessee, and through its wholly owned subsidiary, National Coal of Alabama, is
engaged in coal mining in Alabama. Currently, National Coal employs about 350
people. National Coal sells steam coal to electric utilities and industrial
companies in the Southeastern United States. For more information and to sign-up
for instant news alerts visit www.nationalcoal.com.

Information about Forward Looking Statements

This release contains "forward-looking statements" that include information
relating to future events and future financial and operating
performance.Examples of forward looking-statements include anticipated benefits
of capital improvements and new mines and an anticipated strengthening coal
market in the future.Forward-looking statements should not be read as a
guarantee of future performance or results, and will not necessarily be accurate
indications of the times at, or by which, that performance or those results will
be achieved.Forward-looking statements are based on information available at the
time they are made and/or management`s good faith belief as of that time with
respect to future events, and are subject to risks and uncertainties that could
cause actual performance or results to differ materially from those expressed in
or suggested by the forward-looking statements. Important factors that could
cause these differences include, but are not limited to: (i) the worldwide
demand for coal; (ii) the price of coal; (iii) the price of alternative fuel
sources; (iv) the supply of coal and other competitive factors; (v) the costs to
mine and transport coal; (vi) the ability to obtain new mining permits; (vii)
the costs of reclamation of previously mined properties; (viii) the risks of
expanding coal production; (ix) the ability to bring new mining properties
on-line on schedule; (x) industry competition; (xi) our ability to continue to
execute our growth strategies; and (xii) general economic conditions.These and
other risks are more fully described in the Company`s filings with the
Securities and Exchange Commission including the Company`s most recently filed
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which should be
read in conjunction herewith for a further discussion of important factors that
could cause actual results to differ materially from those in the
forward-looking statements.Forward-looking statements speak only as of the date
they are made.You should not put undue reliance on any forward-looking
statements.We assume no obligation to update forward-looking statements to
reflect actual results, changes in assumptions or changes in other factors
affecting forward-looking information, except to the extent required by
applicable securities laws.If we do update one or more forward-looking
statements, no inference should be drawn that we will make additional updates
with respect to those or other forward-looking statements.

NATIONAL COAL CORP.
CALCULATION OF EBITDA
(UNAUDITED)

EBITDA is defined as net loss plus (i) other (income) expense, net, (ii)
interest expense, (iii) depreciation, depletion, accretion and amortization
minus (iv) interest income, (v) income tax benefits, and (vi) income from joint
ventures. We present Adjusted EBITDA, including stock compensation expense, to
enhance understanding of our operating performance. We use Adjusted EBITDA as a
criterion for evaluating our performance relative to that of our peers,
including measuring our cost effectiveness and return on capital, assessing our
allocations of resources and production efficiencies and making compensation
decisions. We believe that Adjusted EBITDA is an operating performance measure
that provides investors and analysts with a measure of our operating performance
and permits them to evaluate our cost effectiveness and production efficiencies
relative to competitors. In addition, our management uses Adjusted EBITDA to
monitor and evaluate our business operations. However, Adjusted EBITDA is not a
measurement of financial performance under accounting principles generally
accepted in the United States of America ("GAAP") and may not be comparable to
other similarly titled measures of other companies. Adjusted EBITDA should not
be considered as an alternative to cash flows from operating activities,
determined in accordance with GAAP, as indicators of cash flows. The following
reconciles our net loss to Adjusted EBITDA:

Three Months Ended
March 31,
2009 2008
Net loss $ (7,890,415 ) $ (10,102,905 )
Income tax benefit (434,336 ) (76,010 )
Other (income) expense, net (23,162 ) 682,976
Income from joint venture (80,677 ) (202,016 )
Interest income (101,186 ) (228,910 )
Interest expense 4,016,384 4,607,568
Depreciation, depletion, amortization and 4,919,519 4,691,847
accretion
EBITDA 406,127 (627,450 )
Stock compensation expense 425,091 241,076
Adjusted EBITDA $ 831,218 $ (386,374 )

NATIONAL COAL CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

March 31, 2009 December 31, 2008

Assets
Current Assets:
Cash and cash equivalents $ 2,884,727 $ 4,624,511
Restricted cash 2,776,239 2,771,445
Accounts receivable, net 7,103,523 5,738,137
Inventory 2,968,899 3,690,162
Prepaid and other current assets 1,034,530 1,550,873
Total Current Assets 16,767,918 18,375,128

Property, plant, equipment and mine development, net 102,347,407 102,446,696
Deferred financing costs 4,741,406 4,779,439
Restricted cash 19,904,483 19,916,320
Other non-current assets 2,295,160 2,291,634
Total Assets $ 146,056,374 $ 147,809,217

Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable $ 19,545,432 $ 13,782,871
Accrued expenses 4,714,506 2,586,312
Current maturities of long - term debt 2,391,807 3,616,338
Current installments of obligations under 2,200,073 1,943,968
capital leases
Current portion of asset retirement 371,347 259,607
obligations
Deferred revenue - 2,224,880
Total Current 29,223,165 24,413,976
Liabilities

Long - term debt, less current maturities, net of 105,795,238 103,499,899
discount
Obligations under capital leases, less current 314,389 1,419,099
installments
Asset retirement obligations, less current portion 7,553,003 7,150,091
Deferred revenue 1,241,117 1,303,655
Other non-current liabilities 1,944,860 2,138,235
Deferred tax liability 1,959,191 2,393,527
Total Liabilities 148,030,963 142,318,482

Stockholders' Equity (Deficit):
Common Stock, $.0001 par value; 80 million
shares authorized;
34,184,824 shares
issued and outstanding
at March 31, 2009
and December 31, 2008 3,418 3,418
Additional paid - in capital 115,196,038 114,770,947
Accumulated deficit (117,174,045 ) (109,283,630 )
Total Stockholders' (1,974,589 ) 5,490,735
Equity (Deficit)
Total Liabilities and $ 146,056,374 $ 147,809,217
Stockholders' Equity
(Deficit)

NATIONAL COAL CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

For the Three Months Ended
March 31,
2009 2008
Revenues:
Coal sales $ 34,087,025 $ 35,483,441
Other revenues 990,715 185,306
Total 35,077,740 35,668,747
revenues

Operating expenses:
Cost of coal sales (exclusive 31,487,106 34,471,575
of depreciation, depletion,
amortization and accretion)
Cost of services 942,379 -
Depreciation, depletion, 4,919,519 4,691,847
amortization and accretion
General and administrative 2,242,128 1,824,622
Total 39,591,132 40,988,044
operating
expenses

Loss from operations (4,513,392 ) (5,319,297 )

Other income (expense):
Interest expense (4,016,384 ) (4,607,568 )
Interest income 101,186 228,910
Income from joint venture 80,677 202,016
Other 23,162 (682,976 )
Other (3,811,359 ) (4,859,618 )
income
(expense),
net

Loss before income taxes (8,324,751 ) (10,178,915 )

Income tax benefit 434,336 76,010

Net loss (7,890,415 ) (10,102,905 )

Preferred stock dividend - (39,889 )

Net loss attributable to common shareholders $ (7,890,415 ) $ (10,142,794 )

Basic net loss per common share $ (0.23 ) $ (0.36 )

Diluted net loss per common share $ (0.23 ) $ (0.36 )

Weighted average common shares outstanding 34,003,824 28,383,513

NATIONAL COAL CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

For the Three Months Ended
March 31,
2009 2008

Operating Activities
Net loss $ (7,890,415 ) $ (10,102,905 )
Adjustments to reconcile net loss to net cash provided by
operating activities:
Depreciation, depletion, amortization and accretion 4,919,519 4,691,847
Deferred income tax benefit (434,336 ) (76,010 )
Amortization of deferred financing costs 247,706 366,815
Amortization of debt discount 557,362 524,404
Gain on disposal of assets (13,161 ) -
Loss on sale of Straight Creek properties - 381,247
Loss on extinguishment of debt - 454,811
Income from joint venture (80,677 ) (202,016 )
Bad debt expense 222,712 -
Settlement of asset retirement obligations (35,772 ) (93,461 )
Stock option expense 425,090 241,076
Changes in operating assets and liabilities:
Accounts receivable (1,588,098 ) 1,718,281
Inventory 503,330 415,649
Prepaid and other current 511,549 (519,952 )
assets
Other non - current 119,252 88,083
assets
Accounts payable and 9,436,765 5,232,266
accrued expenses
Deferred revenue (2,224,880 ) (62,538 )
Other non - current (193,375 ) (56,321 )
liabilities
Net cash flows provided by operating activities 4,482,571 3,001,276

Investing Activities
Capital expenditures (4,058,402 ) (953,735 )
Proceeds from sale of equipment - 5,661,399
Decrease (increase) in restricted cash 11,837 (362,686 )
Additions to prepaid royalties (42,100 ) (389,294 )
Net cash flows (used in) provided by investing activities (4,088,665 ) 3,955,684

Financing Activities
Repayments of debt (1,075,412 ) (1,806,053 )
Repayment of Term Loan Credit Facility - (5,000,000 )
Repayments of capital leases (719,492 ) (21,781 )
Payments for deferred financing costs (338,786 ) (16,212 )
Net cash flows used in financing activities (2,133,690 ) (6,844,046 )

Net (decrease) increase in cash and cash equivalents (1,739,784 ) 112,914
Cash and cash equivalents at beginning of period 4,624,511 9,854,351
Cash and cash equivalents at end of period $ 2,884,727 $ 9,967,265

Supplemental Cash Flow Information
Cash paid during the year for interest $ 636,012 $ 1,139,183
Non-cash investing and financing activities:
10.5% Senior Secured Notes exchanged for common $ - $ 2,719,596
stock
Financed equipment acquisitions 42,848 73,832
Asset retirement obligations incurred, acquired or 324,332 158,300
recosted
Interest and fees paid in-kind 2,100,000 -

for National Coal Corp.
Christine Pietryla, 865-690-6900, ext. 150
(Investor Relations)

Copyright Business Wire 2009