Rhino Resource Partners Announces Initial Sales Contract For Pennyrile Property, Provides An Operational Update And Announces

    Rhino Resource Partners Announces Initial Sales Contract For Pennyrile
    Property, Provides An Operational Update And Announces Conference Call

PR Newswire

LEXINGTON, Ky., Jan. 30, 2013

LEXINGTON, Ky., Jan. 30, 2013 /PRNewswire/ --Rhino Resource Partners LP
(NYSE: RNO) ("Rhino") today is pleased to announce the signing of a multi-year
coal sales contract for its Pennyrile property in western Kentucky and plans
to begin construction of the mine. For an update on the Pennyrile project,
please see a presentation posted to Rhino's investor relations website at
www.rhinolp.com.

Pennyrile

  oSigned multi-year initial sales contract with a regional utility customer
    for 800,000 tons per year and anticipate additional contracts in the near
    future, which demonstrates the high demand for this quality coal.
  oInitial earthwork development scheduled to begin in Q1 2013 with
    production targeted to commence in mid-2014.
  oLarge contiguous reserve with 32.5 million tons of fully permitted proven
    and probable reserves under lease, with opportunity to add an additional
    15 million tons.
  oLocated directly on navigable Green River in western Kentucky, which
    provides unique low cost access to large customer base, including export
    markets.
  oAnticipate cash expenditures of up to $17 million in 2013 and $22 million
    in 2014 to develop the mine to initial production of 800,000 tons per year
    by 2015. Additional capital expenditures of $23 million are expected to
    increase production to 2 million tons per year by 2017.
  oRhino anticipates this project will generate long term, stable and
    predictable cash flows similar to its Hopedale and Castle Valley
    operations.

Utica Shale Oil and Gas

  oRhino co-invested with Wexford Capital and Gulfport Energy ("Gulfport"),
    with Gulfport acting as the operator, and Rhino currently has a 5%
    interest in a portfolio of approximately 128,000 gross acres (6,400 net
    acres).
  oThree wells are currently producing and Rhino recorded its initial
    proportionate revenue in December 2012.
  oThe average initial production rate of the first nine wells drilled by
    Gulfport was 3,849 BOEPD consisting of 787 barrels of condensate per day,
    10.85 MMCF of natural gas per day and 1,253 barrels of NGLs (see note (1)
    in table below).
  oAnnounced test results of Gulfport's Utica wells are listed in the
    following table.

                                                          Production mix
Well                                 IP Rate (Boe/d) (1)  Oil  Gas  NGLs
Wagner 1-28H (active producing)      4,650                9%   50%  41%
Boy Scout 1-33H (active producing)   3,456                45%  26%  29%
Groh 1-12H                           1,935                61%  20%  19%
Shugert 1-1H                         4,913                3%   56%  41%
Ryser 1-25H                          2,914                51%  27%  22%
BK Stephens 1-14H                    3,007                41%  34%  25%
Shugert 1-12H                        7,482                4%   57%  39%
Clay 1-4H                            2,226                34%  32%  34%
Stutzman 1-14H                       4,060                -    77%  23%
Source: Gulfport Energy Corporation
(1) Assumes full ethane recovery

Operations Update and Conference Call

In addition, Rhino is providing an operational update of its fourth quarter
activities. Rhino will host a conference call and webcast for investors and
analysts to discuss its operational update for the quarter on Thursday,
January 31, 2013, at 11:00 am (ET).

Participants should call 800-573-4840 (United States/Canada) or 617-224-4326
(International) and utilize the confirmation code 57157356. A telephonic
replay will be available for anyone unable to participate in the live call. To
access the replay, call 888-286-8010 (United States/Canada) or 617-801-6888
(International) and enter confirmation code 30715486. The recording will be
available from 1:00 pm (ET) on Thursday, January 31, 2013 through Thursday,
February 7, 2013 at 11:59 p.m. (ET). A live broadcast of the earnings
conference call will also be available via the Internet at
www.rhinolp.comunder 'Investor Relations'. The webcast will be archived on
the site for one year.

Northern Appalachia

  oNorthern Appalachia operations produced 461 thousand tons of steam coal
    during the fourth quarter. Coal sales were 468 thousand tons and
    limestone sales totaled 96 thousand tons.
  oRhino's Hopedale sales remain fully contracted through 2014.
  oRhino's Sands Hill operation has reduced its production schedule to align
    2013 production with committed sales.

Central Appalachia

  oRhino has completed contract negotiations with its metallurgical coal
    customers for delivery of approximately 380 thousand met coal tons during
    2013.
  oDuring the quarter, Central Appalachia operations produced 384 thousand
    tons of steam coal and 79 thousand tons of met coal. Met coal sales
    totaled 122 thousand tons and steam coal sales were 349 thousand tons.
  oDuring the fourth quarter, lessees at Rhino's Elk Horn operation produced
    approximately 576 thousand tons from its properties.
  oOne of Rhino's operations in eastern Kentucky received a reclamation award
    sponsored by the Kentucky Department for Natural Resources and the
    Kentucky Coal Association in recognition of the best reclamation in their
    respective region.

Rhino Western

  oRhino's Castle Valley operation produced 230 thousand tons and sold 242
    thousand tons during the fourth quarter.
  oCastle Valley's sales remain fully contracted through 2014.

Eastern Met

  oRhino Eastern produced 54 thousand tons of met coal during the fourth
    quarter and sales were 33 thousand tons.
  oNormal operations have continued at the Rhino Eastern joint venture with
    Patriot Coal Corporation, although weak market conditions have negatively
    affected met coal sales from this operation.

Guidance

  oBased on currently contracted sales, Rhino anticipates the following for
    the full year 2013, with additional sales providing potential upside:

                                  2013
                                  Coal Operations  Oil and Gas  Total
For:                              (in millions)
Adjusted EBITDA (1)               $50 - $60        $10 - $20    $60 - $80
Maintenance Capital Expenditures  $10 - $15        -            $10 - $15
Expansion Capital Expenditures    $16 - $19        $15 - $20    $31 - $39
Interest Expense                  -                -            $7
Cash Available for Distribution   -                -            $43 - $58
Production*                       3.7 - 4.3        -            3.7 - 4.3
Sales*                            3.7 - 4.3        -            3.7 - 4.3

 * Guidance for production tons and sale tons includes 51% of expected
        activity from Rhino Eastern

  oRhino is also providing updated guidance for the full year 2012:

                                  Updated 2012  Previous 2012
For:                              (in millions)
Revenue                           $348 - $353   $320 - $340
Net Income                        $38 - $42     $33 - $43
Adjusted EBITDA (1)               $85 - $90     $80 - $90
Maintenance Capital Expenditures  $16 - $18     $15 - $18
Production                        4.5 - 4.7     4.2 - 4.5
Sales                             4.5 - 4.7     4.3 - 4.6

(1) Refer to "Reconciliations of Adjusted EBITDA" included later in this
release for reconciliations to the most directly comparable GAAP financial
measures

About Rhino Resource Partners LP

Rhino Resource Partners LP is a growth-oriented limited partnership. Rhino
produces metallurgical and steam coal in a variety of basins throughout the
United States, it leases coal through its Elk Horn subsidiary, and it owns oil
and gas acreage in the Utica and Cana Woodford plays.

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 Rhino expects, believes or anticipates will or may
occur in the future are forward-looking statements. These forward-looking
statements are based on Rhino's current expectations and beliefs concerning
future developments and their potential effect on Rhino's business, operating
results, financial condition and similar matters. While management believes
that these forward-looking statements are reasonable as and when made, there
can be no assurance that future developments affecting Rhino will be those
that Rhino anticipates. Whether actual results and developments in the future
will conform to expectations is subject to significant risks, uncertainties
and assumptions, many of which are beyond Rhino's control or ability to
predict. Therefore, actual results and developments could materially differ
from Rhino's historical experience and present expectations and what is
expressed, implied or forecast in these forward-looking statements. Important
factors that could cause actual results to differ materially from those in the
forward-looking statements include, but are not limited to, the following:
decline in coal prices, which depend upon several factors such as the supply
of domestic and foreign coal, the demand for domestic and foreign coal,
governmental regulations, price and availability of alternative fuels for
electricity generation and prevailing economic conditions; increased
competition in global coal markets and declines in demand for coal; current
and future environmental laws and regulations which could materially increase
operating costs or limit Rhino's ability to produce and sell coal; extensive
government regulation of mine operations, especially with respect to mine
safety and health, which imposes significant actual and potential costs;
difficulties in obtaining and/or renewing permits necessary for operations; a
variety of operating risks, such as unfavorable geologic conditions, natural
disasters, mining and processing equipment unavailability and failures and
unexpected maintenance problems and accidents, including fire and explosions
from methane; fluctuations in transportation costs or disruptions in
transportation services could increase competition or impair Rhino's ability
to supply coal; a shortage of skilled labor; increases in raw material costs,
such as steel, diesel fuel and explosives; Rhino's ability to acquire
replacement coal reserves that are economically recoverable; inaccuracies in
Rhino's estimates of coal reserves and non-reserve coal deposits; existing and
future laws and regulations regulating the emission of sulfur dioxide and
other compounds could affect coal consumers and as a result reduce demand for
coal; federal and state laws restricting the emissions of greenhouse gases;
Rhino's ability to acquire or failure to maintain, obtain or renew surety
bonds used to secure obligations to reclaim mined property; Rhino's dependence
on a few customers and its ability to find and retain customers under
favorable supply contracts; changes in consumption patterns by utilities away
from the use of coal, such as resulting from low natural gas prices;
disruption in supplies of coal produced by contractors operating Rhino's
mines; defects in title in properties that Rhino owns or losses of any of
Rhino's leasehold interests; increased labor costs or work stoppages; the
ability to retain and attract senior management and other key personnel; and
assumptions underlying reclamation and mine closure obligations are materially
inaccurate.

Other factors that could cause Rhino's actual results to differ from its
projected results are described in its filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K.

Readers are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date hereof. Rhino undertakes no
obligation to publicly update or revise any forward-looking statements after
the date they are made, whether as a result of new information, future events
or otherwise.

Reconciliations of Adjusted EBITDA

The following tables present reconciliations of Adjusted EBITDA to the most
directly comparable GAAP financial measures for each of the periods indicated
(note: DD&A refers to depreciation, depletion and amortization). Rhino
management believes the presentation of Adjusted EBITDA that includes the
proportionate share of DD&A and interest expense for Rhino Eastern is
appropriate since the Partnership's portion of Rhino Eastern's net income that
is recognized as a single line item in its financial statements is affected by
these expense items. Since Rhino does not reflect these proportionate expense
items of DD&A and interest expense in its consolidated financial statements,
management believes that the adjustment for these expense items in the
Adjusted EBITDA calculation is more representative of how management reviews
the results of the Partnership and provides investors with additional
information that they can use to evaluate Rhino's results.

                                Year Ending    Updated 2012   Previous 2012
($ in millions)                 2013
                                                (est midpoint)  (est midpoint)
                                (est midpoint)
Net income (loss)               $         $         $      
                                22.0           40.0           38.0
Plus:
Depreciation, depletion and     40.0            40.0            39.0
amortization (DD&A)
Interest expense                7.0             7.0             6.5
EBITDA                          $         $         $      
                                69.0           87.0           83.5
Plus: Rhino Eastern DD&A-51%    1.0             1.0             1.5
Plus: Rhino Eastern interest    -               -               -
expense-51%
Adjusted EBITDA                 $         $         $      
                                70.0           88.0           85.0





SOURCE Rhino Resource Partners LP

Website: http://www.rhinolp.com
Contact: Investor Contact: Scott Morris, +1-859-519-3622, smorris@rhinolp.com