NATIONAL COAL CORP. SIGNS AGREEMENTS
TO SELL THREE MILLION SHARES
Proceeds of Approximately $14 Million
Will Strengthen Financial Position and Future Growth Initiatives
Knoxville,
Tenn. – (February 28, 2007) – National Coal
Corp. (Nasdaq: NCOC) today announced that it has signed definitive subscription agreements to sell three million shares of its common stock at
the February 28, 2007 closing consolidated bid price of $4.65 per share. Daniel Roling, President and CEO of National Coal, has
agreed to purchase 200,000 shares, and two institutional investors have agreed to purchase the remaining 2.8 million shares. The proceeds from the
sale will be approximately $14 million.
Mr. Roling explained, "This placement will significantly strengthen the
Company’s financial position and enable us to remain focused on future growth opportunities. My personal investment in the
Company reflects my confidence in its financial health and long term growth prospects.”
The Company will agree to register with the Securities and Exchange
Commission the resale by the investors of the shares issued in the private placement. The Company expects to complete the private
placement on or before March 2, 2007.
The shares to be sold will not be registered under the Securities Act of
1933, but will be sold in reliance upon exemptions from the registration requirements of the Securities Act pursuant to Regulation D promulgated
under the Securities Act. Unless the shares are registered, they may not be offered or sold in the United States except pursuant to an exemption from
the registration requirements of the Securities Act and applicable state laws.
This communication shall not constitute an offer to sell or the solicitation
of an offer to buy, and shall not constitute an offer, solicitation or sale of any security.
About National Coal Corp.
Headquartered in Knoxville, Tenn., National Coal Corp., through its
wholly-owned subsidiary, National Coal Corporation, is engaged in coal mining in East Tennessee and Southeastern Kentucky. Currently, National Coal
employs more than 250 people and produces coal from mines in Tennessee and in Kentucky. National Coal sells steam coal to electric utilities in the
Southeastern United States. For more information visit www.nationalcoal.com.
Information About Forward-Looking
Statements
Except for historical information contained herein, the statements in this
release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are inherently unreliable and actual results may differ materially. Examples of
forward looking statements in this news release include the closing of the acquisition transaction. Factors which could cause
actual results to differ materially from these forward-looking statements include failure or difficulty in obtaining third party approvals, our
ability to complete the acquisition transaction in a timely manner and the inability to raise the capital necessary to pay the purchase
price. These and other risks are more fully described in the Company's filings with the Securities and Exchange
Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.
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