Blackhawk Mining to Restructure, No Disruption to Employees or Operations.

Lexington, KY — Blackhawk Mining, LLC has announced that it has reached an agreement with over 90% of its lenders on the terms of a financial restructuring. The transformative transaction will eliminate over 60% of the Company’s total debt and provide over $150 million of incremental liquidity. The transaction will be effectuated through a “pre-packaged” bankruptcy filing that will allow the process to move swiftly to completion within 60 days and with no disruption to the Company’s employees, customers, or vendors. Blackhawk has entered into a Restructuring Support Agreement with over 90% of its lenders and more than 80% of its equity holders and has commenced solicitation on a plan of reorganization. To facilitate the restructuring, Blackhawk and substantially all of its wholly owned subsidiaries will file voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court of Delaware. The Company, its lenders, and its equity holders have agreed to the terms of the plan of reorganization, which will be subject to approval by the Bankruptcy Court. “Today’s announcement represents a significant step in our ongoing efforts to position Blackhawk for long-term success,” said Jesse Parrish, Chief Financial Officer. “After carefully evaluating our options, we determined that implementing these agreements through a court supervised process represents the best way to solidify our financial position while ensuring no disruption to our employees, customers, or vendors. We are equipped with low-cost, well capitalized assets and an industry-leading team of coal miners and industry professionals. We are excited about the future at Blackhawk and look forward to continuing our valued relationships with customers and suppliers for the long term.” Blackhawk Mining, LLC will file various first day motions with the Bankruptcy Court in support of its reorganization. The Company will continue to pay employee wages and provide healthcare and other benefits without interruption in the ordinary course of business and to pay suppliers and vendors in full under normal terms for goods and services provided both prior to and after the Chapter 11 filing date. The Company expects to receive Bankruptcy Court approval for these requests.