Willow Lake Mine in southern Illinois to be closed

              Willow Lake Mine in southern Illinois to be closed

PR Newswire

ST. LOUIS, Nov. 27, 2012

ST. LOUIS, Nov. 27, 2012 /PRNewswire/ -- Big Ridge, Inc. today announced it
will permanently close the Willow Lake Mine near Harrisburg, Ill. The mine
has failed to meet acceptable standards for safety, compliance and operating
performance, and these ongoing issues make the operations unsustainable. 

(Logo: http://photos.prnewswire.com/prnh/20120724/CG44353LOGO) 

Worker Adjustment and Retraining Notification (WARN) letters are being
provided to approximately 400 employees. Willow Lake sold 2.2 million tons in

Peabody expects to incur a largely non-cash, one-time charge estimated at $40
to $60 million ($0.10 to $0.15 per share after tax) in the fourth quarter
primarily to write off assets, increase asset retirement obligations and
accrue severance. The company expects little effect on ongoing earnings from
the closing.

Peabody Energy is the world's largest private-sector coal company and a global
leader in sustainable mining and clean coal solutions. The company serves
metallurgical and thermal coal customers in more than 25 countries on six
continents. For further information, go to PeabodyEnergy.com and

The use of the words "Peabody," "the company" and "our" relate to Peabody, our
subsidiaries and our majority-owned affiliates.

Peabody Energy Forward Looking Statement
Certain statements in this press release are forward looking as defined in the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based on numerous assumptions that the company believes are
reasonable, but they are open to a wide range of uncertainties and business
risks that may cause actual results to differ materially from expectations as
of Nov. 27, 2012. These factors are difficult to accurately predict and may be
beyond the company's control.

The company does not undertake to update its forward-looking statements.
Factors that could affect the company's results include, but are not limited
to: global demand for coal, including the seaborne thermal and metallurgical
coal markets; price volatility, particularly in higher-margin products and in
our trading and brokerage businesses; impact of alternative energy sources,
including natural gas and renewables; impact of weather and natural disasters
on demand, production and transportation; reductions and/or deferrals of
purchases by major customers and ability to renew sales contracts; credit and
performance risks associated with customers, suppliers, co-shippers, trading,
banks and other financial counterparties; geologic, equipment, permitting and
operational risks related to mining; transportation availability, performance
and costs; availability, timing of delivery and costs of key supplies, capital
equipment or commodities such as diesel fuel, steel, explosives and tires;
integration of the newly acquired Macarthur Coal operations; successful
implementation of business strategies; negotiation of labor contracts,
employee relations and workforce availability; changes in postretirement
benefit and pension obligations and funding requirements; replacement and
development of coal reserves; access to capital and credit markets and
availability and costs of credit, margin capacity, surety bonds, letters of
credit, and insurance; effects of changes in interest rates and currency
exchange rates (primarily the Australian dollar); effects of acquisitions or
divestitures; economic strength and political stability of countries in which
we have operations or serve customers; legislation, regulations and court
decisions or other government actions, including new environmental and mine
safety requirements; changes in income tax regulations or other regulatory
taxes; litigation, including claims not yet asserted; and other risks detailed
in the company's reports filed with the Securities and Exchange Commission

Beth Sutton
(928) 522-7008

SOURCE Peabody Energy

Website: http://www.peabodyenergy.com
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