The Company has reached agreement with a customer that previously requested deferral of a portion of contracted shipments. The customer has now confirmed its commitment to purchase volumes as originally contracted for the remainder of 2009 and has agreed to make a cash payment to compensate for shortfalls in contracted purchases in the first half of 2009, primarily in the second quarter. The cash payment will be received in June and recognized as revenue during the second quarter. Patriot's EBITDA for the second quarter is expected to be largely driven by this contractual arrangement.

"Coal producers continue to deal with customer requests to defer shipments, especially customers in the steel industry. We have successfully restructured a coal supply agreement that is integral to our financial results, solidifying Patriot's earnings relative to this contract, while addressing our customer's needs. As changing circumstances warrant, we will continue to work toward mutually beneficial arrangements with our customers that maintain the full value of our contracts," noted Patriot Chief Executive Officer Richard M. Whiting.

Separately, Patriot has filed a demand for arbitration against a metallurgical coal customer to enforce the Company's contractual rights and recover damages for failure to perform under two legacy-priced coal supply agreements during 2009. The customer's failure to perform has caused disruptions in operating and shipping schedules.

As of June 15, the Company's 2009 production is substantially committed, and the Company expects sales to total 33.5 to 35 million tons for the full year. Average selling prices of currently priced tons scheduled for shipment in the second half of 2009 are as follows:

   (tons in millions)                     2H 2009                                  Tons        Price per ton                                  ----        -------------    Appalachia - thermal           11.1                  $58   Illinois Basin - thermal        3.8                  $37   Appalachia - met                2.5                  $105                                   ---        Total                     17.4                                  ====    About Patriot Coal   

Patriot Coal Corporation is the third largest producer and marketer of coal in the eastern United States, with 14 current mining complexes in Appalachia and the Illinois Basin.