Alliance Resource Partners, L.P. Issues WARN Notice at its Pontiki Mine in Response to Weak Coal Demand

  Alliance Resource Partners, L.P. Issues WARN Notice at its Pontiki Mine in
  Response to Weak Coal Demand

Business Wire

TULSA, Okla. -- September 27, 2013

Alliance Resource Partners, L.P. (NASDAQ: ARLP) announced today that its
subsidiary, Excel Mining, LLC (Excel), issued Worker Adjustment and Retraining
Notification (WARN) Act notices to all employees at the Pontiki mining complex
in Martin County, Kentucky. ARLP currently plans to continue operations at the
Pontiki complex until early December to fulfill commitments under existing
sales contracts at which time the mine is expected to cease production.

"For over 36 years, the Pontiki mining complex has operated safely and
profitably — providing quality jobs for our hardworking people and meeting the
needs of customers," said Joseph W. Craft III, President and Chief Executive
Officer. "When Pontiki resumed production last year, we knew the market
outlook was uncertain but were hopeful that conditions would improve.
Unfortunately, market conditions remain weak, and we have been unable to
secure new coal sales commitments for Pontiki coal beyond the existing 2013
contracts. While we are deeply saddened by the impact of this decision on our
employees, their families and their communities, we have no choice but to take
this unfortunate but necessary step to begin the process of winding down
production operations at Pontiki."

ARLP continues to execute on its growth projects in the Illinois Basin and
Northern Appalachia, and management is currently evaluating options to provide
employment opportunities to Pontiki personnel at other ARLP operations in
those regions. Information sessions will be scheduled in the near future to
allow Pontiki employees to learn more about these opportunities.

Following a closure order by the Mine Safety and Health Administration with
respect to the Pontiki coal preparation plant and associated surface
facilities, the Pontiki mining complex was temporarily idled on August 29,
2012 and resumed operations on November 25, 2012. Due to that temporary idling
of the mine, ARLP recorded in 2012 approximately $26.6 million of related
losses and charges, including a $19.0 million non-cash asset impairment
charge. ARLP does not currently expect the closure of the Pontiki mine to have
a material impact on its 2013 financial results.

The Pontiki mining complex is owned by Pontiki Coal, LLC and operated by
Excel, both wholly-owned subsidiaries of ARLP. The Pontiki mining complex
currently employs approximately 142 workers and has generated 2013
year-to-date coal sales and production volumes of approximately 613,000 tons
and 634,000 tons, respectively.

About Alliance Resource Partners, L.P.

ARLP is a diversified producer and marketer of coal to major United States
utilities and industrial users. ARLP, the nation's first publicly traded
master limited partnership involved in the production and marketing of coal,
is currently the third largest coal producer in the eastern United States with
mining operations in the Illinois Basin, Northern Appalachian and Central
Appalachian coal producing regions. ARLP operates eleven mining complexes in
Illinois, Indiana, Kentucky, Maryland and West Virginia. ARLP is also
constructing a new mine in southern Indiana and is purchasing and funding
development of reserves, constructing surface facilities and making equity
investments in a new mining complex in southern Illinois. In addition, ARLP
operates a coal loading terminal on the Ohio River at Mount Vernon, Indiana.

News, unit prices and additional information about ARLP, including filings
with the Securities and Exchange Commission, are available at
http://www.arlp.com. For more information, contact the investor relations
department of ARLP at (918) 295-7674 or via e-mail at
investorrelations@arlp.com.

The statements and projections used throughout this release are based on
current expectations. These statements and projections are forward-looking,
and actual results may differ materially. These projections do not include the
potential impact of any mergers, acquisitions or other business combinations
that may occur after the date of this release. At the end of this release, we
have included more information regarding business risks that could affect our
results.

FORWARD-LOOKING STATEMENTS: With the exception of historical matters, any
matters discussed in this press release are forward-looking statements that
involve risks and uncertainties that could cause actual results to differ
materially from projected results. These risks, uncertainties and
contingencies include, but are not limited to, the following: changes in
competition in coal markets and our ability to respond to such changes;
changes in coal prices, which could affect our operating results and cash
flows; risks associated with the expansion of our operations and properties;
legislation, regulations, and court decisions and interpretations thereof,
including those relating to the environment, mining, miner health and safety
and health care; deregulation of the electric utility industry or the effects
of any adverse change in the coal industry, electric utility industry, or
general economic conditions; dependence on significant customer contracts,
including renewing customer contracts upon expiration of existing contracts;
changing global economic conditions or in industries in which our customers
operate; liquidity constraints, including those resulting from any future
unavailability of financing; customer bankruptcies, cancellations or breaches
to existing contracts, or other failures to perform; customer delays, failure
to take coal under contracts or defaults in making payments; adjustments made
in price, volume or terms to existing coal supply agreements; fluctuations in
coal demand, prices and availability; our productivity levels and margins
earned on our coal sales; unexpected changes in raw material costs; unexpected
changes in the availability of skilled labor; our ability to maintain
satisfactory relations with our employees; any unanticipated increases in
labor costs, adverse changes in work rules, or unexpected cash payments or
projections associated with post-mine reclamation and workers′ compensation
claims; any unanticipated increases in transportation costs and risk of
transportation delays or interruptions; unexpected operational interruptions
due to geologic, permitting, labor, weather-related or other factors; risks
associated with major mine-related accidents, such as mine fires, or
interruptions; results of litigation, including claims not yet asserted;
difficulty maintaining our surety bonds for mine reclamation as well as
workers′ compensation and black lung benefits; difficulty in making accurate
assumptions and projections regarding pension, black lung benefits and other
post-retirement benefit liabilities; coal market's share of electricity
generation, including as a result of environmental concerns related to coal
mining and combustion and the cost and perceived benefits of other sources of
electricity, such as natural gas, nuclear energy and renewable fuels;
uncertainties in estimating and replacing our coal reserves; a loss or
reduction of benefits from certain tax deductions and credits; difficulty
obtaining commercial property insurance, and risks associated with our
participation (excluding any applicable deductible) in the commercial
insurance property program; and difficulty in making accurate assumptions and
projections regarding future revenues and costs associated with equity
investments in companies we do not control.

Additional information concerning these and other factors can be found in
ARLP’s public periodic filings with the Securities and Exchange Commission
("SEC"), including ARLP’s Annual Report on Form 10-K for the year ended
December 31, 2012, filed on March 1, 2013 with the SEC. Except as required by
applicable securities laws, ARLP does not intend to update its forward-looking
statements.

Contact:

Alliance Resource Partners, L.P.
Brian L. Cantrell, 918-295-7673
 
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