Patriot Coal Announces Proposed Selenium Settlement

             Patriot Coal Announces Proposed Selenium Settlement

PR Newswire

ST. LOUIS, Nov. 15, 2012

ST. LOUIS, Nov. 15, 2012 /PRNewswire/ -- Patriot Coal Corporation (OTC: PCXCQ)
today announced that it has reached a proposed settlement agreement with the
Ohio Valley Environmental Coalition, Inc., the West Virginia Highlands
Conservancy, Inc. and the Sierra Club regarding claims under the Clean Water
Act relating to surface mining activities in West Virginia.

As a result of the proposed settlement, the deadline for compliance with
selenium effluent limitations at outfalls under the Hobet 22 permit will be
extended from May 2013 until August 2014. Additionally, compliance schedules
under the global consent decree announced in January 2012 will be extended by
12 months. In exchange, Patriot will agree to certain restrictions on
large-scale surface mining activities.

"This settlement agreement allows Patriot to defer up to $27 million of
compliance-related cash outlays from 2012 and 2013 into 2014 and beyond, which
improves our liquidity as we reorganize our company and increases the
likelihood that we will emerge from the Chapter 11 process as a viable
business," stated Patriot President & Chief Executive Officer Bennett K.
Hatfield. "Importantly, this proposed settlement allows Patriot to continue
mining according to existing permits and is consistent with our long-term
business plan to focus capital on expanding higher-margin metallurgical coal
production and limiting thermal coal investments to selective opportunities
where geologic and regulatory risks are minimized."

The settlement remains subject to approval by the Federal District Court for
the Southern District of West Virginia following a public comment period, as
well as approval by the Bankruptcy Court for the Southern District of New
York.

About Patriot Coal
Patriot Coal Corporation is a producer and marketer of coal in the eastern
United States, with 12 active mining complexes in Appalachia and the Illinois
Basin. Patriot ships to domestic and international electricity generators,
industrial users and metallurgical coal customers, and controls approximately
1.9 billion tons of proven and probable coal reserves.

Forward-Looking Statements
Certain statements in this press release are forward-looking as defined in the
Private Securities Litigation Reform Act of 1995. These statements involve
certain risks and uncertainties that may be beyond our control and may cause
our actual future results to differ materially from our current expectations
both in connection with the Chapter 11 filings Patriot announced on July 9,
2012 and our business and financial prospects. No assurance can be made that
these events will come to fruition. We undertake no obligation (and expressly
disclaim any such obligation) to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise. Factors that could affect our results include, but are not limited
to: (i) the ability of Patriot and its subsidiaries to continue as a going
concern, (ii) the ability of Patriot and its subsidiaries to operate within
the restrictions and liquidity limitations of the post-petition credit
facilities authorized by the Bankruptcy Court, (iii) the ability of Patriot
and its subsidiaries to obtain Bankruptcy Court approval with respect to
motions in the Chapter 11 cases, (iv) the ability of Patriot and its
subsidiaries to successfully complete a reorganization under Chapter 11 and
emerge from bankruptcy, which is dependent upon, among other things, the
ability to implement changes to wage and benefit programs and postretirement
benefit obligations consensually or pursuant to Sections 1113 and 1114 of the
Bankruptcy Code, to minimize liabilities upon emergence and to obtain
post-bankruptcy financing, (v) the effects of the bankruptcy filing on Patriot
and its subsidiaries and the interests of various creditors, equity holders
and other constituents, (vi) Bankruptcy Court rulings in the Chapter 11 cases
and the outcome of the cases in general, (vii) the length of time Patriot and
its subsidiaries will operate under the Chapter 11 cases, (viii) risks
associated with third-party motions in the Chapter 11 cases, which may
interfere with the ability of Patriot and its subsidiaries to develop one or
more plans of reorganization and consummate such plans once they are
developed, (ix)the potential adverse effects of the Chapter 11 proceedings on
Patriot's liquidity or results of operations, (x) the ability to execute
Patriot's business and restructuring plans, (xi)increased legal costs related
to Patriot's bankruptcy filing and other litigation, and (xii) the ability of
Patriot and its subsidiaries to maintain contracts that are critical to their
operation, including to obtain and maintain normal terms with their vendors,
customers, landlords and service providers and to retain key executives,
managers and employees. In the event that the risks disclosed in Patriot's
public filings and those discussed above cause results to differ materially
from those expressed in Patriot's forward-looking statements, Patriot's
business, financial condition, results of operations or liquidity, and the
interests of creditors, equity holders and other constituents, could be
materially adversely affected. For additional information concerning factors
that could cause actual results to materially differ from those projected
herein, please refer to Patriot's Form 10-K and Form 10-Q reports.

SOURCE Patriot Coal Corporation

Website: http://www.patriotcoal.com
Contact: Media, Michael Freitag, or Jonathan Keehner, or Aaron Palash, Joele
Frank, Wilkinson Brimmer Katcher, +1-212-355-4449; or Investor Contact, Janine
Orf, +1-314-275-3680, jorf@patriotcoal.com
 
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