NATIONAL COAL CORP. ENTERS STOCK PURCHASE AGREEMENT
WITH ALABAMA-BASED MINING COMPANY
Knoxville, Tenn. – (June 22, 2007) –
National Coal Corp. (Nasdaq: NCOC) today announces it has entered into a stock purchase
agreement with the stockholders of Mann Steel Products, Inc. to acquire 100% of the stock of the company for $55 million. Mann Steel Products, which
is based in Birmingham, Alabama, produces steam and industrial coal for the domestic market.
The transaction is subject to a number
of conditions, including, but not limited to, completion by National Coal of its due diligence of the assets and properties to be acquired, National
Coal obtaining financing to consummate the acquisition, approval of the transaction by National Coal Corp.’s Board of Directors, and receipt
of required third party consents and approvals, including consents of National Coal’s senior secured lender and bond holders.
Accordingly, there can be no assurance that the acquisition will be completed.
National Coal’s acquisition of
Mann Steel Products is anticipated to close by the end of the third quarter. These newly acquired operations will add more than 1,000,000 tons of
capacity to National Coal’s existing annual production capacity of approximately 2,000,000 tons. Mann Steel currently has about 100 employees
and produces about 1,000,000 tons.
“Mann Steel Products operates
three surface mining facilities that are very well managed and have high quality coal reserves. This is precisely the kind of mining operation we
have been seeking to enhance our future growth prospects,” said Daniel Roling, President and CEO of National Coal. “Mann’s
management has maintained excellent relationships with its work force and customer base, and the facilities incur low production costs. If
consummated, we look forward to these properties making a meaningful contribution to our operations."
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 about 230 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.
# #
#