Phoenix Coal Inc a leading producer and consolidator of thermal coal reserves in the Illinois Basin announced that the completion and subsequent filing of an independent technical report on the coal reserves at the Gryphon Mining Complex which now includes the Pratt reserve, the recently acquired Petersburg reserve, and the Panama South reserve. Unless otherwise noted, all mineral reserves and mineral resources are expressed in imperial tonnes.

Highlights:

1. Phoenix controls 68.4 million tons of proven and probable coal mineral reserves at Gryphon;

2. Phoenix controls 3.7 million tonnes of underground measured and indicated coal resources and 0.2 million tonnes of inferred coal resources at Gryphon;

3. The increase in Gryphon's proven and probable reserves from the Company's previous guidance of 43.1 million tonnes to 68.4 million tonnes is due to the addition of 22.3 million tonnes from the Panama South reserve that are now contiguous to the rest of the Gryphon area.

Mr David A Wiley president and CEO of Phoenix Coal said that "Since we completed our public offering in June of 2008, we have increased our reserve base from 43.7 million tonnes to more than 80 million tonnes of proven and probable coal reserves, including our surface mining assets."

Mr Willey said that "In addition to the increase in reserves, we have significantly enhanced the value of Gryphon with our acquisition of a strategically located portal site and by the fact that it is one of the largest contiguous blocks of underground coal in Western Kentucky."