Westmoreland Coal Company announced that it together with Westmoreland Partners, its indirect wholly owned subsidiary as Co-Issuer, intends to offer USD 130 million principal amount of 10.75% Senior Secured Notes due 2018 as additional notes to the already outstanding USD 150 million principal amount of existing 10.75% Senior Secured Notes due 2018, in a private placement.

The terms, timing and structure of any transaction are subject to market and other conditions. There can be no assurance that any transaction will ultimately be pursued or that any transaction, if pursued, will be successful. The net proceeds from the offering of the Notes are expected to be used, together with cash on hand to finance the acquisition of the Kemmerer Mine.

The net proceeds shall be used to pay the cash consideration of USD 74.4 million approximately USD 32.0 million for reclamation bonding collateral and the remainder to fund initial Kemmerer working capital and to pay estimated transaction fees and expenses.

The Notes will be sold only to qualified institutional buyers in the United States in reliance on Rule 144A under the Securities Act of 1933, as amended and outside the United States to non-US persons in reliance on Regulation S under the Securities Act. The proposed issuance of the Notes will not be registered under the Securities Act and may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act.