- Adjusted EBITDA of $53.2 Million Compared with $7.7 Million in Q-1 2008

- As a Result of New Contracts Signed in 2008, CAPP Average Sales Price of $90.91 per ton Compared with $52.56 per ton in Q-1 2008

- Amended Existing CAPP Utility Contract and Priced an Additional 1,500,000 Tons of CAPP Utility Coal at $70.00 per ton

- Continuing to Adjust Coal Production to Soft Market Conditions

- Conference Call Slides Posted to Company Website

RICHMOND, Va., May 1 /PRNewswire-FirstCall/ -- James River Coal Company (Nasdaq: JRCC), a producer of steam and industrial-grade coal, today announced that it had net income of $28.2 million or $1.03 per fully diluted share for the first quarter of 2009. This is compared to a net loss of $16.7 million or $.78 per fully diluted share for the first quarter of 2008.

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.