Westmoreland Savage Enters into New Long-Term Supply Agreement

  Westmoreland Savage Enters into New Long-Term Supply Agreement

Business Wire

ENGLEWOOD, Colo. -- January 29, 2013

Westmoreland Coal Company (NasdaqGM:WLB) today announced that its Westmoreland
Savage Corporation subsidiary, which owns the Savage Mine in Sidney, Montana,
has amended its lignite supply agreement with one of its long-time customers
Montana-Dakota Utilities Co., a division of MDU Resources Group, Inc. The
amendment extends the term of the original agreement for the supply of lignite
to the Lewis & Clark Station through December 31, 2017. The contract provides
that the Savage Mine will continue to provide Lewis & Clark Station its
lignite requirements on an annual basis, which has historically been
approximately 300,000 tons a year.

“Westmoreland is pleased that we were able to work collaboratively with our
long-time customer at the Savage Mine to extend the term of the contract for
another five years,” commented Robert P. King, President and Chief Operating
Officer. “This extension is significant for the Savage Mine and provides for
increased profitability for this operation and improved quality for the
customer.”

About Westmoreland Coal Company

Westmoreland Coal Company is the oldest independent coal company in the United
States. The Company’s coal operations include coal mining in the Powder River
Basin in Montana, sub-bituminous mining in Wyoming, and lignite mining
operations in Montana, North Dakota and Texas. Its power operations include
ownership of the two-unit ROVA coal-fired power plant in North Carolina. For
more information, visit www.westmoreland.com.

Contact:

Westmoreland Coal Company
Kevin Paprzycki, 855-922-6463
 
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