JW Resources, Inc. Acquires Kentucky Thermal Coal Mining Operations from Xinergy Ltd.

  JW Resources, Inc. Acquires Kentucky Thermal Coal Mining Operations from
  Xinergy Ltd.

Business Wire

KNOXVILLE, Tenn. -- February 11, 2013

JW Resources, Inc., (“JW Resources” or the “Company”), a privately held
management and holding company formed by Bayside Capital, Inc. ("Bayside") and
Lawrence M. Clark, Jr., announced today that through certain wholly-owned
subsidiaries it has completed the acquisition of the Straight Creek and Red
Bird thermal coal mining operations (the “Straight Creek Operations”) of
Xinergy Ltd. (TSX:XRG) (“Xinergy”), located in Bell, Clay, Harlan, Knox and
Leslie Counties, Kentucky, for $47.2 million in cash (the “Transaction”). The
Straight Creek Operations are located in the Central Appalachian (“CAPP”) coal
basin in eastern Kentucky and consist of approximately 48,000 acres containing
an estimated 42 million tons of proven and probable high-quality thermal coal

Assets acquired in the Transaction include all permits, contracts, real
property leases and mining equipment associated with the Straight Creek
Operations, as well as all related infrastructure, including two CSX unit
train load-out facilities, a 500 ton/hour preparation plant, and two fully
permitted refuse impoundment facilities with significant remaining useful
lives. The Company’s diverse mix of surface, highwall, and underground mining
operations will continue to be managed by seasoned mining executive William R.
“Bill” Snodgrass, who has been responsible for the Straight Creek Operations
under Xinergy and will assume the role of Chief Operating Officer of JW

JW Resources is a newly-created management and holding company focused on
identifying, acquiring and operating thermal and metallurgical coal mining and
related assets in the United States. The Company is majority-owned by
affiliates of Bayside and was formed and capitalized in partnership with Mr.
Clark, an experienced institutional investor with a proven track record
investing in the coal and natural resources industries. Clark will serve as
Chief Executive Officer of JW Resources and will be focused on both guiding
the strategic direction of the Straight Creek Operations as well as
identifying and executing acquisitions of additional premier coal industry

Mr. Clark commented: "Given recent challenges in the thermal coal industry, it
is an attractive time to acquire low-cost producers with substantial reserve
life. We are excited to be partnering with Bayside, as its large and flexible
capital base provides for an ideal sponsor to both support the Straight Creek
Operations and capitalize on additional acquisition opportunities through the
JW Resources platform."

“We established JW Resources in partnership with Larry to acquire premier
assets that are positioned to participate in the strong long-term global
utility and industrial demand environment,” said Sean Ozbolt, Managing
Director at Bayside Capital. “We identified the Straight Creek Operations as
an attractive platform due to its low-cost, high-quality CAPP coal assets and
its world class operating team led by Bill Snodgrass.”

About JW Resources, Inc.

Headquartered in Knoxville, Tennessee, JW Resources, Inc. is focused on
identifying, acquiring and operating thermal and metallurgical coal mining and
related assets in the United States.

About Bayside Capital

Bayside Capital is an affiliate of H.I.G Capital, a leading global private
investment firm with more than $10 billion of equity capital under management.
Bayside Capital is focused on providing capital solutions to address complex
situations, and has the ability to provide capital through a broad range of
debt and equity securities with an emphasis on long term returns. With eight
offices throughout the United States and Europe and over 250 investment
professionals to draw upon, Bayside has the experience, resources, and
flexibility required to provide capital solutions quickly, and the strategic
and operational expertise to provide value enhancing support to its portfolio
companies. For more information, please refer to the Bayside Capital website
at www.bayside.com or contact:

Sean Ozbolt
Managing Director

Josh Porter


JW Resources, Inc.
Lawrence M. Clark, Jr.
Chief Executive Officer
Chris Halouma, 865-388-9915
Chief Financial Officer
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