Westmoreland Agrees in Principal to Purchase San Juan Mine and Enter into Long-Term Coal Supply Agreement

Westmoreland Coal Company (NasdaqGM:WLB) today announced that it has agreed in principal to purchase the San Juan Mine in Farmington, New Mexico from BHP Billiton and enter into a new long-term coal supply agreement with the owners of the San Juan Generating Station (“SJGS”). The contemplated new coal supply agreement states that Westmoreland will take over operations at the beginning of 2016. The new coal supply agreement expires in 2022, but SJGS owners can extend the agreement beyond 2022, to coincide with the SJGS owners’ plans for operation of the plant after 2022. The new coal supply agreement and the agreement in principal for Westmoreland to purchase San Juan Mine will not be final or binding until all parties have secured internal approvals.

"Westmoreland is delighted to establish a new relationship with the San Juan Generating Station," said Keith E. Alessi, Westmoreland Coal Company’s CEO. "We look forward to working with the ownership of San Juan and BHP Billiton in assuring a smooth transition on or about January 1, 2016. The San Juan mine is a well-run operation with an excellent workforce that fits extremely well with our mine mouth, contracted business model. We look forward to welcoming the International Union of Operating Engineers workforce along with all San Juan Coal Company employees into the Westmoreland family and are certain that they will embrace our culture of safe production.”

About Westmoreland Coal Company

Westmoreland Coal Company is the oldest independent coal company in the United States. Westmoreland’s coal operations include sub-bituminous and lignite surface coal mining in the Western United States and Canada, an underground bituminous coal mine in Ohio, a char production facility, and a 50% interest in an activated carbon plant. Westmoreland also owns the general partner of and a majority interest in Westmoreland Resource Partners, LP, formerly Oxford Resource Partners, LP, a publicly-traded coal master limited partnership with six mining complexes. Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina. For more information, visit www.westmoreland.com.

Contacts:

Westmoreland Coal Company
Kevin Paprzycki, 855-922-6463

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