N E W S R E LE A S E
Alpha Natural Resources, Inc.
FOR IMMEDIATE RELEASE
Contact: Ted Pile (276) 623-2920
Alpha Natural Resources Substantially Completes Previously Announced OTC
Review; Expects to File Second-Quarter Form 10-Q by August 21
ABINGDON, Va., August 14, 2006
Alpha Natural Resources, Inc. (NYSE: ANR), a leading
Appalachian coal producer, today announced that it intends to file a Form 12b-25 with the U.S.
Securities and Exchange Commission providing for a five calendar-day extension for submitting its
quarterly report on Form 10-Q for the quarter ended June 30, 2006. Alpha intends to file the 10-Q
no later than Monday, August 21, 2006. At that time, Alpha also intends to issue its full
second-quarter 2006 earnings release, including summary financial statements and related analysis.
The company reported preliminary second quarter 2006 financial results on August 1, 2006 and held a
conference call for investors and analysts at that time.
As previously announced, Alpha and its independent auditors have undertaken a review of the manner
in which the company accounts for certain purchases and sales on the over-the-counter (OTC) coal
market under SFAS No. 133 Accounting for Derivative Instruments and Hedging Activities. This
review is now substantially complete, and Alpha expects to record accounting adjustments related to
these OTC transactions in the second quarter of 2006 that are expected to increase net income by
approximately $2.7 million, or approximately $0.04 per diluted share. Alpha expects to record
these adjustments, as well as future mark-to-market gains or losses on purchase and sales
transactions in the OTC coal market that meet the definition of a derivative, in Coal revenues
and Cost of coal sales, as applicable. These adjustments will only affect the timing of the
recognition of income or losses on the relevant contracts and will not affect the underlying
economics or cash flow of those transactions. The company has assessed the impact of these
adjustments and does not believe these amounts are material to any previously issued financial
statements or to its expected full year results for 2006.
In connection with the delay in filing the Form 10-Q report, certain subsidiaries of Alpha have
requested and received a waiver from lenders under the companys credit facility of the
second-quarter reporting deadline and related provisions under the credit facility while the
company completes its filing obligations. Under the credit facility, certain subsidiaries of Alpha
are required to furnish quarterly financial statements to the lenders within 45 days after the end
of each of the first three fiscal quarters of each year (or by
August 14, 2006 for the second quarter of 2006).