Oxford Resource Partners, LP Suspends Distributions for Fourth Quarter 2012 to Further Preserve Liquidity

Oxford Resource Partners, LP Suspends Distributions for Fourth Quarter 2012 to
                          Further Preserve Liquidity

PR Newswire

COLUMBUS, Ohio, Jan. 29, 2013

COLUMBUS, Ohio, Jan. 29, 2013 /PRNewswire/ --Oxford Resource Partners, LP
(NYSE: OXF) (the "Partnership" or "Oxford") determined, based upon continued
weakness in the coal markets, to suspend the cash distributions on both its
common and subordinated units for its fourth quarter ended December 31, 2012.
In making this decision, the Board concluded that it was in the best interests
of the Partnership to further preserve liquidity.

Despite the challenging environment, the Partnership continues to benefit from
its low-cost production profile and strategic importance to its customers.
The Partnership's sales book is 98 percent committed and priced for 2013 based
on currently anticipated levels of production.

The Partnership continues to pursue opportunities to enhance its liquidity,
including the sale of certain excess Illinois Basin equipment. The
Partnership is also pursuing the refinancing of its credit facility, and plans
to provide an update on that effort when it announces its financial results
for the fourth quarter of 2012, which the Partnership intends to do in early
to mid-March 2013.

Under the Partnership's partnership agreement, arrearage amounts resulting
from suspension of the common units distribution accumulate. Arrearage
amounts resulting from suspension of the subordinated units distribution do
not accumulate. In the future as distributions are made for any quarter, the
first priority is to pay the then minimum quarterly distribution to common
unitholders. Any additional distribution amounts paid at that time are then
paid to common unitholders until their previously unpaid accumulated arrearage
amounts have been paid in full.

About Oxford Resource Partners, LP

Oxford Resource Partners, LP is a low-cost producer of high value steam coal
in Northern Appalachia and the Illinois Basin. Oxford markets its coal
primarily to large electric utilities with coal-fired, base-load scrubbed
power plants under long-term coal sales contracts. The Partnership is
headquartered in Columbus, Ohio.

For more information about Oxford Resource Partners, LP (NYSE: OXF), please
visit www.OxfordResources.com. Financial and other information about the
Partnership is routinely posted on and accessible at www.OxfordResources.com.

This announcement is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b), with 100% of the Partnership's distributions
to foreign investors attributable to income that is effectively connected with
a United States trade or business. Accordingly, the Partnership's
distributions to foreign investors are subject to federal income tax
withholding at the highest applicable tax rate.

FORWARD-LOOKING STATEMENTS: Except for historical information, statements made
in this press release are "forward-looking statements." All statements, other
than statements of historical facts, included in this press release that
address activities, events or developments that the Partnership expects,
believes or anticipates will or may occur in the future are forward-looking
statements.

These statements are based on certain assumptions made by the Partnership
based on its management's experience and perception of historical trends,
current conditions, expected future developments and other factors the
Partnership's management believes are appropriate under the circumstances.
Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the Partnership's control, which may
cause actual results to differ materially from those implied or expressed by
the forward-looking statements. These risks, uncertainties and contingencies
include, but are not limited to, the following: productivity levels, margins
earned and the level of operating costs; weakness in global economic
conditions or in customers' industries; changes in governmental regulation of
the mining industry or the electric power industry and the increased costs of
complying with those changes; decreases in demand for electricity and changes
in coal consumption patterns of U.S. electric power generators; the
Partnership's dependence on a limited number of customers; the Partnership's
inability to enter into new long-term coal sales contracts at attractive
prices and the renewal and other risks associated with the Partnership's
existing long-term coal sales contracts, including risks related to
adjustments to price, volume or other terms of those contracts; difficulties
in collecting the Partnership's receivables because of credit or financial
problems of major customers, and customer bankruptcies, cancellations or
breaches to existing contracts or other failures to perform; the Partnership's
ability to acquire additional coal reserves; the Partnership's ability to
respond to increased competition within the coal industry; fluctuations in
coal demand, prices and availability due to labor and transportation costs and
disruptions, equipment availability, governmental regulations, including those
pertaining to carbon dioxide emissions, and other factors; significant costs
imposed on the Partnership's mining operations by extensive and frequently
changing environmental laws and regulations, and greater than expected
environmental regulations, costs and liabilities; legislation and regulatory
and related judicial decisions and interpretations including issues pertaining
to climate change and miner health and safety; a variety of operational,
geologic, permitting, labor and weather-related factors, including those
pertaining to both our mining operations and our underground coal reserves
that we do not operate; limitations in the cash distributions the Partnership
receives from its majority-owned subsidiary, Harrison Resources, LLC, and the
ability of Harrison Resources, LLC to acquire additional reserves on
economical terms from CONSOL Energy Inc. in the future; the potential for
inaccuracies in estimates of the Partnership's coal reserves, which could
result in lower than expected revenues or higher than expected costs; the
accuracy of the assumptions underlying the Partnership's reclamation and mine
closure obligations; liquidity constraints, including those resulting from the
cost or unavailability of financing due to current capital markets conditions;
risks associated with major mine-related accidents; results of litigation,
including claims not yet asserted; the Partnership's ability to attract and
retain key management personnel; greater than expected shortage of skilled
labor; the Partnership's ability to maintain satisfactory relations with
employees; and failure to obtain, maintain or renew security arrangements,
such as surety bonds or letters of credit, in a timely manner and on
acceptable terms.

The Partnership undertakes no obligation to publicly update or revise any
forward-looking statements. Readers should not place undue reliance on
forward-looking statements, which reflect management's views only as of the
date hereof. Further information on risks and uncertainties is available in
the Partnership's periodic reports filed with the U.S. Securities and Exchange
Commission or otherwise publicly disseminated by the Partnership.

SOURCE Oxford Resource Partners, LP

Website: http://www.oxfordresources.com
Contact: Partnership Contact:Bradley W. Harris, +1-614-643-0314,
ir@OxfordResources.com
 
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