Audley Capital Urges Stockholders to Support Important Change at Walter Energy and Vote for New Directors on April 25, 2013

  Audley Capital Urges Stockholders to Support Important Change at Walter
  Energy and Vote for New Directors on April 25, 2013

             Urges Stockholders to vote the GOLD Proxy Card TODAY

Business Wire

NEW YORK -- April 22, 2013

Audley Capital Advisors LLP (including certain related funds and investment
vehicles, “Audley Capital”) today urged stockholders to vote the GOLD proxy
card to elect its five highly-qualified experienced nominees for election to
the Board of Directors of Walter Energy, Inc. (NYSE: WLT) (TSX: WLT) (“Walter
Energy” or “the Company”) at the Company’s upcoming 2013 Annual Meeting of
Stockholders on April 25, 2013. In addition, Audley Capital reminds
stockholders of some of the decisions of the current Board that it believes
have proven extremely harmful to stockholder value. Audley Capital urges
stockholders to vote to remove certain Walter Energy Board members, including
Chairman Michael T. Tokarz, Jerry W. Kolb, Joseph B. Leonard, Bernard G.
Rethore and A.J. Wagner, to restore confidence in the direction of the
Company.

We remind stockholders of some of the recent Board decisions that we believe
have damaged shareholder value:

                         We believe that the structure of the Western Coal
                         transaction – in large part to avoid a stockholder
                         vote on the matter – was disadvantageous to the
                         Company. The structure saddled Walter Energy with
                         unprecedented levels of debt that it continues to
STRUCTURE OF THE         struggle with today. If stockholders of Walter Energy
WESTERN COAL            had had the opportunity to vote on the transaction,
TRANSACTION              we believe it is likely that a higher proportion of
                         shares would have been provided as consideration
                         rather than the reduced number of shares that were
                         issued. Do you trust that the Company would not
                         pursue such value-destructive transactions in the
                         future without consulting stockholders?
                         
                         Even before the Company’s recently announced issuance
                         of $450 million of new high yield debt, we believed
                         Walter Energy was significantly overleveraged with
                         $2.3 billion of debt. A net debt to book value of
                         equity ratio of 228% for a mining company with a high
                         level of operational risk and a high level of
                         commodity price risk is unacceptable in our view,
INEFFECTIVE FINANCIAL    particularly when the Company’s peers’ net
MANAGEMENT               debt/stockholders’ equity ratios range from 47% to
                         144%. We believe stockholders would prefer to invest
                         in a mining company with a net debt to book value of
                         equity ratio of less than 100% given the commodity
                         price risk in the current macro environment. Do you
                         trust in the Company’s ability to manage its
                         burdensome debt load and avoid a highly dilutive
                         capital raise?
                         
                         The Company has been pushing a plan that is entirely
                         predicated on the recovery of met coal pricing in the
                         very near future. We believe that the Company has
                         grossly miscalculated expectations for met coal
                         pricing recovery, as demonstrated by the downward
                         pressure on met coal pricing and recently disclosed
                         Chinese growth data, and that there is a very real
STRATEGIC PLAN           possibility that prices will fall further. We think
PREDICATED ON MET COAL   the Company is out of touch with market realities. We
RECOVERY                 believe that the current Board is ill-prepared to
                         respond to continued price deterioration, and
                         consequently, could face a liquidity crisis in the
                         foreseeable future that could force the Board to
                         pursue financing that could severely impact
                         stockholders. Do you trust that the Company's
                         apparent reliance exclusively on the uncertain
                         possibility of increasing met coal prices is sound
                         strategic planning?
                         
                         We believe the current Board’s use of cash is
                         wasteful, misguided and detrimental to shareholder
                         value. For example, the Company has spent
MISGUIDED CAPEX          approximately $500 million on capital expenditures in
ALLOCATION               Western Canada with very little effect on production.
                         This is on top of the $1.1 billion write-down that
                         the Company took on the assets in October 2012. Do
                         you trust that the Company can deliver an appropriate
                         return on invested capital?
                         
                         We believe that there is a substantial lack of mining
                         and public market experience among the current Board
                         members. We believe the five directors we seek to
                         replace have been on the Board for too long, with an
                         average tenure of 12 years, and lack independent
BOARD MEMBERS LACKING    views. Notably, Mr. Tokarz has served on the Walter
INDUSTRY AND MARKET      Energy Board for 26 years. Furthermore, four of these
EXPERIENCE AND           five directors are members of a group of interlocking
INDEPENDENT VIEWS        directors with Mueller Water Products, Inc. We
                         believe these longstanding Board members’ on-going
                         inability to reverse the serious loss of stockholder
                         value must come to an end. Do you trust that the
                         current Board members have the necessary skills to
                         navigate a further deterioration of met coal prices
                         and unlock additional value?

Julian Treger, Managing Partner of Audley Capital Advisors, said, “We believe
the current Board lacks the overall qualifications and relevant experience to
effect constructive and positive changes at the Company. We think the track
record of poor financial, operational and strategic decisions speaks for
itself. With a market capitalization nearing $1 billion and a debt load of
approximately $2.5 billion, Walter Energy is starting to look to us like a
leveraged buyout gone awry. There are significant problems, but there can be
solutions. Once elected, our director nominees will bring to bear all of their
knowledge and experience in managing multi-jurisdictional coal operations and
their financing in an effort to reduce risk in the near-term. They will work
with the reconstituted Board and current management to put forth new
innovative ideas and provide immediate independent and sophisticated oversight
of the Company.”

Mr. Treger concluded, “As a group, our nominees have created billions of
dollars of realized value for investors and stockholders. Although their past
accomplishments in other situations are no guarantee, they will work hard to
do the same for the long-suffering stockholders of Walter Energy. We urge
stockholders to vote for important change on the gold proxy today.”

Audley Capital urges stockholders to vote FOR its five director nominees by
immediately completing and returning the GOLD proxy card or by submitting
proxies by telephone or through the Internet. Investors that have any
questions or need assistance voting their shares should call Audley Capital’s
proxy solicitor, Okapi Partners LLC, at (877) 208-8903.

Additional Information

Further information regarding the director nominees and other persons who may
be deemed participants, and other matters, are set forth in a definitive proxy
statement filed with the Securities and Exchange Commission (“SEC”).
SHAREHOLDERS OF THE COMPANY ARE STRONGLY ADVISED TO READ THAT PROXY STATEMENT,
BECAUSE IT INCLUDES IMPORTANT INFORMATION. THE PROXY STATEMENT IS BEING SENT
TO SHAREHOLDERS BY OR ON BEHALF OF PARTICIPANTS, AND IS ALSO AVAILABLE AT NO
CHARGE ON THE SEC’S WEBSITE AT http://www.sec.gov.

Contact:

Investors:
Audley Capital Advisors LLP
Julian Treger, Managing Partner
+44 20 7529 6900
or
Okapi Partners LLC
Bruce Goldfarb/Charles Garske/Patrick McHugh
212-297-0720
or
Media:
Sard Verbinnen & Co
Dan Gagnier/Brian Shiver
212-687-8080
 
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