James River Coal Completes $172.5 Million Debt Financing

Placement made to Institutional Buyers

December 3, 2009 - James River Coal Co. (Nasdaq GS: JRCC), a Virginia-based producer of steam and industrial-grade coal, has announced the completion of an offering of $172.5 million of 4.5% convertible senior notes due 2015.  The placement was made to qualified institutional buyers pursuant to Securities and Exchange Commission (SEC) Rule 144A.

The Company expects to use approximately $58.5 million of the proceeds in connection with the termination of its letter of credit facility, and the remainder for working capital and general corporate purposes, , which may include acquiring or investing in businesses or other assets or repayment of outstanding debt.

James River Coal Company mines, processes and sells, steam and industrial-grade coal primarily to electric utility companies. The Company's mining operations are managed through five operating subsidiaries located throughout eastern Kentucky and one subsidiary in southern Indiana.