Coal sales prices realized by ARLP in the 2012 Quarter were lower compared to both the 2011 and Sequential Quarters, primarily due to reduced metallurgical export sales from our Mettiki complex in Northern Appalachia.

Total Segment Adjusted EBITDA Expense per ton in the 2012 Quarter increased 1.9% compared to the 2011 Quarter, primarily as a result of reduced sales and production due to the idling of Pontiki discussed above and higher coal inventory costs. Partially offsetting these increases, Segment Adjusted EBITDA Expense per ton benefited from increased production at Tunnel Ridge, reduced roof control expenses per ton, lower outside coal purchases and favorable workers’ compensation reserve adjustments during the 2012 Quarter compared to both the 2011 and Sequential Quarters. In the Illinois Basin, Segment Adjusted EBITDA Expense per ton increased in the 2012 Quarter compared to the 2011 Quarter, primarily due to increased costs per ton due to adverse geological conditions at the Hopkins County mine and at the Dotiki mine related to its transition into the West Kentucky No. 13 coal seam and the addition of the Onton No. 9 mine. Sequentially, Segment Adjusted EBITDA Expense per ton improved in the Illinois Basin primarily due to increased recoveries at various operations, particularly our River View, Gibson and Pattiki mines, and improved operating performance at our Onton mine. In Central Appalachia, the idling of the Pontiki mining complex drove Segment Adjusted EBITDA Expense per ton higher in the 2012 Quarter compared to both the 2011 and Sequential Quarters. Segment Adjusted EBITDA Expense per ton improved in Northern Appalachia during the 2012 Quarter, compared to both the 2011 and Sequential Quarters, as the ramp of longwall production reduced costs at Tunnel Ridge and at our Mettiki mining complex costs were lower due to changes in sales mix. (For a definition of Segment Adjusted EBITDA and Segment Adjusted EBITDA Expense per ton and related reconciliations to comparable GAAP financial measures, please see the end of this release).

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