NATIONAL COAL CORP.
STOCK PURCHASE AGREEMENT WITH MANN STEEL
EXPECTED TO CLOSE IN
OCTOBER
Knoxville, Tenn. – (September 28,
2007) – National Coal Corp. (Nasdaq: NCOC) anticipates it will close
its stock purchase agreement with Mann Steel Products, Inc. in mid-October 2007. In June 2007, the Company announced it had entered into this
agreement, to acquire 100% of Mann Steel’s stock for $55 million, with the expectation that it would close before the end of the third
quarter.
Daniel Roling, President and CEO of National Coal explains that the delay can be attributed to the
challenges faced in the debt market during July and August, “The debt market experienced serious dislocations over the summer as we were
arranging our financing. That turmoil slowed down the process significantly and delayed us from the third quarter close we had
originally anticipated; it is as simple as that. As a result, additional time is necessary for our financiers to complete their ongoing due diligence
process. Our expectations of this deal remain the same moving forward.”
William T. Mann, Vice President of Mann
Steel Product agrees saying, “We are working with National Coal to complete this transaction in conjunction with normal due diligence
practices and are moving forward with that in mind.”
The financing of the transaction is
subject to a number of conditions, including, but not limited to, completion of the financing company’s due diligence, negotiation of
definitive loan and security documents, and obtaining consents of National Coal’s senior secured lender. Accordingly, there
can be no assurance that the acquisition will be completed.
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.
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.
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