Peter T. Socha, Chairman and Chief Executive Officer commented: "This was an excellent quarter for James River Coal Company. We have begun shipping on the new sales contracts that we signed in 2008. In the operations area, the mines had a very good quarter in both CAPP and the Illinois Basin. In the contracting area, we worked with one of our long-time utility customers to amend an existing contract to address important needs of both parties. In the transportation area, we were very pleased with our train service this quarter. We had a great start to 2009."

QUARTERLY RESULTS

The following tables show selected operating results for the quarter ended March 31, 2009 compared to the quarter ended March 31, 2008 (in 000's except per ton amounts).

       Total Results                   Three Months Ended March 31,                                     2009                      2008                               Total     Per Ton         Total     Per Ton    Company and contractor    production (tons)          2,866                     2,802   Coal purchased from    other sources (tons)          37                       133   Total coal available    to ship (tons)             2,902                     2,935    Coal shipments (tons)       2,631                     2,922   Coal sales revenue       $192,121       73.02      $138,188        47.29   Cost of coal sold         132,707       50.44       125,730        43.03   Depreciation, depletion,    & amortization            14,473        5.50        17,290         5.92   Gross profit (loss)        44,941       17.08        (4,832)       (1.65)   Selling, general &    administrative             9,287        3.53         7,334         2.51    Adjusted EBITDA (1)       $53,194       20.22        $7,655         2.62    (1) Adjusted EBITDA is defined under "Reconciliation of Non-GAAP       Measures" in this release.  Adjusted EBITDA is used to determine       compliance with financial covenants in our senior secured credit       facilities.               Segment Results              Three Months Ended March 31,                                     2009                      2008                                CAPP     Midwest          CAPP      Midwest    Company and contractor    production (tons)          2,041         825         2,087          715   Coal purchased from other    sources (tons)                37           -           133            -   Total coal available    to ship (tons)             2,077         825         2,220          715    Coal shipments (tons)       1,844         787         2,197          725   Coal sales revenue       $167,635      24,486      $115,479       22,709   Average sales price    per ton                    90.91       31.11         52.56        31.32    Cost of coal sold        $111,484      21,223      $104,110       21,620   Cost of coal sold    per ton                    60.46       26.97         47.39        29.82        Cost Bridge                                 Q-4 2008 vs. Q-1 2009                                                   CAPP       Midwest    Beginning cash costs (Q-4 2008)              $56.15        28.59   Royalties and sales related costs              4.23            -   Variable costs (diesel, explosives, etc.)         -        (1.07)   Other                                          0.08        (0.55)   Ending cash costs (Q-1 2009)                 $60.46        26.97    

C.K. Lane, Senior Vice President and Chief Operating Officer commented: "Both our CAPP and Midwest operations had an excellent quarter. The first quarter safety results continue to be very positive. The tight labor market continues to improve. We are seeing both an increase in experienced applicants and reduced turnover. I am very pleased with both our CAPP and Midwest cash costs."

Mr. Lane continued: "In response to the weak coal markets, we are continuing to adjust our production through small changes to our work schedules for the remainder of 2009. Our strong contract position for the next several years and flexible mine operations give us the option to decline low-priced offers and wait for the market to properly reflect our costs and the value of our coal."

LIQUIDITY

As of March 31, 2009, the Company had available liquidity of $25.8 million calculated as follows (in millions):

   Cash and Cash Equivalents             $9.8   Availability under the Revolver       35.0   Drawn under the Revolver              (9.0)   Minimum Liquidity Reserve (1)        (10.0)    Available Liquidity                  $25.8    (1) In accordance with our Loan Facilities the Minimum Liquidity Reserve       of $10.0 million will no longer apply when the Company's Adjusted       EBITDA exceeds $75.0 million  for any twelve month period ended on       the last day of the quarter.    

As of March 31, 2009 the Company's actual twelve month Adjusted EBITDA was $63.1 million compared to the covenant requirement of $54.1 million. The Company was in compliance with all of the covenants in its senior secured credit facilities as of March 31, 2009.