Alpha Natural Resources to Commence Work on Coalfields Expressway After Virginia Designates Funds

ABINGDON, Va., April 4, 2008 /PRNewswire-FirstCall/ -- Alpha Natural Resources, Inc. NYSE: ANR today said it was prepared to commence the first phase of road construction and coal recovery on the 51-mile section of the Coalfields Expressway (CFX) in southwestern Virginia after state officials said that funds had been approved for the project to get underway.

Virginia Governor Tim Kaine announced during a press conference this morning in Abingdon that two initial $5 million Transportation Partnership Opportunity Fund grants had been approved to start work on two sections of the expressway. One of those sections, the two-mile Hawk's Nest segment, will be where Alpha will remove coal while building a rough grade road bed for the CFX.

The funding announcement comes on the heels of the re-instatement of Special Experimental Project 14 (SEP-14) status for the CFX by the Federal Highway Administration, which considers innovative contracting methods in transportation funding decisions. The re-instatement of SEP-14 status, announced last week by Rep. Rick Boucher, enables Virginia's Department of Transportation (VDOT) to request federal matching funds for the project.

"The Coalfields Expressway comes closer to being a reality today," Governor Kaine said at the Abingdon press conference. "These two grants, coupled with potential federal funds, will allow us to advance this much-anticipated project for Virginia."

"This project has been discussed for decades and today we're taking a giant leap forward in converting this from paper to reality," said Mike Quillen, chairman and CEO of Alpha Natural Resources. "The unique public-private partnership we have with the Commonwealth of Virginia is the wave of the future for transportation projects in areas where coal can be mine synergistically with the building of roads at great savings to taxpayers."

VDOT estimates that the Hawk's Nest section that Alpha will be excavating would cost in excess of $100 million to get to rough grade using conventional highway construction techniques. By using a coal synergy option, whereby Alpha removes coal as it brings the terrain to rough grade for the highway, VDOT calculates a savings of more than $90 million.

The CFX is a proposed four-lane highway that will transverse the coalfield region of southwestern Virginia including the counties of Wise, Dickenson and Buchanan. Designated as part of the national highway system, the road will link Interstates 64 and 77 in West Virginia with Routes 23 and 460 in Virginia. It will have a design speed of 60 miles per hour.

Officials expect the entire multi-state Appalachian region will experience a boost in commerce and tourism as a result of the project, as well as easier transportation accessibility for residents of the region.

In January 2006, both Alpha and Pioneer Group Inc., another local natural resources company, entered into a Public Private Transportation Act (PPTA) agreement with VDOT to advance the CFX. Both companies completed their limited feasibility study last September evaluating possible alignments that consider areas where both companies hold rights to the underlying coal reserves. Alpha's section of the CFX is approximately 30 miles.

Alpha's Callaway Natural Resources division has completed or is currently working on similar coal-synergy road construction projects in West Virginia, including approximately 15 miles of the King Coal Highway.

About Alpha Natural Resources

Alpha Natural Resources is a leading supplier of high-quality Appalachian coal to electric utilities, steel producers and heavy industry. Approximately 89 percent of the company's reserve base is high Btu coal and 82 percent is low sulfur, qualities that are in high demand among electric utilities which use steam coal. Alpha is also the nation's largest supplier and exporter of metallurgical coal, a key ingredient in steel manufacturing. Alpha and its subsidiaries currently operate mining complexes in four states, consisting of 58 mines supplying 11 coal preparation and blending plants. The company and its subsidiaries employ more than 3,600 people.

ANRG