Walter Energy Prices $320 Million Offering of Senior Secured Notes

BIRMINGHAM, AL--(Marketwired - Jul 8, 2014) - Walter Energy Inc. ("Walter Energy") (NYSE: WLT) today announced the pricing of its private offering of $320.0 million aggregate principal amount of senior secured notes due 2019 with a coupon of 9.500% per annum (the "Notes"). The Notes are a follow-on issue to the $450.0 million aggregate principal amount of Walter Energy's 9.500% senior secured notes due 2019 which were issued on September 27, 2013 and Walter Energy's $200.0 million aggregate principal amount of 9.500% senior secured notes due 2019 which were issued on March 27, 2014. Walter Energy will pay interest on the Notes on April 15 and October 15 of each year, with the next interest payment being due on October 15, 2014. The Notes will be guaranteed by each of Walter Energy's current and future wholly-owned domestic restricted subsidiaries that from time to time guarantees any of Walter Energy's indebtedness or any indebtedness of any of Walter Energy's restricted subsidiaries. The Notes and related guarantees will be offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act. The Notes have not been registered under the Securities Act, and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws.

Walter Energy intends to use the net proceeds of the offering of the Notes to repay $298.1 million of indebtedness outstanding under its Revolving Credit Facility and to pay related fees and expenses.

This press release does not constitute an offer to sell, or a solicitation of an offer to sell or buy any securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Walter Energy

Walter Energy is a leading, publicly traded "pure-play" metallurgical coal producer for the global steel industry with strategic access to high-growth steel markets in Asia, South America and Europe. The company also produces thermal coal, anthracite, metallurgical coke and coal bed methane gas. Walter Energy employs approximately 2,900 employees with operations in the United States, Canada and United Kingdom.