Phoenix Coal Inc announced that the Company has received a permit granted by the US Army Corps of Engineers under Section 404 of the Clean Water Act for its KO Mine. The issuance of the 404 Permit authorizes Phoenix to commence mine development and coal production on the KO property, effective immediately.
Prior to the 404 Permit, the Company received the other required permits for the KO Mine: the Kentucky Department of Natural Resources state mining permit and the permit required under Section 401 of the Clean Water Act.

Mr David Wiley president and CEO of Phoenix Coal Inc said that "Receiving the final KO permit is an important milestone for our Company. We have now received all of the necessary permits we need to execute our 2009 production and sales plan. The KO mine is expected to contribute over 400,000 saleable tonnes this year and is expected to reach full production levels by late June."

Due to the issuances of the delayed permits, the Company will be lifting its force majeure declaration following the ramp-up of production at the KO Mine. Phoenix expects to notify its customers of the end of the force majeure period and ramp up schedule immediately.