TEXT-S&P says American Gilsonite rtgs unchanged with add-on

(The following statement was released by the rating agency)

Sept. 14 - Standard & Poor's Ratings Services today said that its 'B' issue rating and '4' recovery rating on Bonanza, Utah-based American Gilsonite Co.'s senior secured notes due 2017 remain unchanged after the company announced it will seek to add $10 million to its existing $260 million senior secured notes due 2017, bringing the total issue amount to $270 million. American Gilsonite is a specialty miner and the only producer of Gilsonite in the U.S. The company will use the proceeds from the additional issuance to fund a dividend to its owners. The '4' recovery rating indicates our expectation of average (30% to 50%) recovery for lenders in the event of a payment default. The 'B' corporate credit rating takes into account American Gilsonite's relatively small size, scope, and reliance on a single end market; though the company is the only producer of Gilsonite in the U.S. and has consistently generated positive cash flow. We view the company's business risk profile as "vulnerable", reflecting our opinion of the company's lack of diversity given its single product and mine complex, dependence on the volatile oil and gas industry, and the threat that a substitute option for Gilsonite in drilling fluids could be developed. Our financial risk profile score of "aggressive" reflects American Gilsonite's small size (with 2012 anticipated revenues of around $100 million), as well as its financial policy, which incorporates our perspective that the company will likely use excess cash flow to pay dividends to its private equity ownership. These factors are balanced by American Gilsonite's history of generating positive free cash flow and our assessment of adequate liquidity, stemming primarily from availability under the revolving credit facility given that the company holds minimal cash balances. American Gilsonite mines uintaite, or Gilsonite, a naturally occurring asphalt whose resin-like properties are used as a stabilizing agent in oil and gas drilling fluids, as a binding element in inks and paints, and in a variety of asphalt and foundry-related applications. For the latest corporate credit rating rationale, see Standard & Poor's research update on American Gilsonite Co. published Aug. 15, 2012, on RatingsDirect. For the complete recovery analysis, see Standard & Poor's recovery report on American Gilsonite published on RatingsDirect on Aug. 16, 2012 RELATED RESEARCH AND CRITERIA

-- Criteria Methodology: Business Risk/Financial Risk Matrix Expanded, May 27, 2009

-- Corporate Ratings Criteria 2008, published April 15, 2008.

-- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008 RATINGS LIST American Gilsonite Co. Corporate credit rating B/Stable/-- $270 mil sr secured notes due 2017 B

Recovery rating 4 Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column. Primary Credit Analyst: Gayle M Bowerman, New York (1) 212-438-1706;

gayle_bowerman@standardandpoors.com Secondary Contact: Megan L Johnston, New York (1) 212-438-7257;

megan_johnston@standardandpoors.com (Reporting By Hilary Russ)