Atlantic Coal Regulatory News (ATC)

Atlantic Coal plc ("Atlantic" or the "Company")

Announcement of Results, Posting of Results and Notice of AGM

Atlantic  Coal  plc,  the AIM  listed  opencast  coal  production  and  processing  company  with activities  inStockton,  Pennsylvania,  USA  ("Stockton") is pleased to announce its results for the year ended 31 December 2013.

Highlights

· The loss of the Group for the year ended 31 December 2013 before taxation amounts to $1,478,707 (year ended 31 December 2012 - $2,661,557)

· Cash at bank at the year end $877,003 (2012: $1,902,348)

· Sales maintained at 2012 levels despite failing anthracite prices - $19,661,639 (2012: $19,657,105)

· Gross profit $3,618,233 (2012: $4,011,995)

· Gross margin 18.40% (2012: 20.41%)

· Total debt decreased by over $2 million in 2013 to $4,773,339 (2012: $6,795,468)

· Improved production capacity at our Stockton Colliery and increased coal reserves

· Restoration obligations decreased with the final completion of seeding work at Gowen

The annual  report  and financial statement for the yearended 31 December 2013 (the "Report and Accounts") has been postedto shareholders together with a notice of its annual generalmeeting ("AGM").

The Companywill be holding its AGM at 3 St Helen's Place, London, EC3A 6AB on 26 June 2014 at 2:30pm.

Copies of the Reports and Accounts and the AGM notice will be made available shortly from the Company'swebsite,  www.atlanticcoal.com, in accordance with AIM Rule 20.

**ENDS**

For further information on the Company, visit: www.atlanticcoal.com or contact:

CHAIRMAN'S REPORT

It has been a year of mixed news for Atlantic Coal. Whilst we have seen downward pressure on the prices we receive for Stockton's anthracite, we have still been able to maintain total revenues in spite of coal selling for an average of US$128 per ton. In our drive to secure profitability, we have seen some impact on our efforts to reduce cost. In 2013 Stockton's cost of clean coal per ton sold was US$105 per ton compared to US$112 per ton in 2012.

Operationally we are still mining anthracite at our flagship Stockton mine within a profitable threshold, but naturally we would like to see a return to higher anthracite prices. In the meantime we have extended our lease option on Pott & Bannon and remain on the lookout for other assets in Pennsylvania in line with our stated strategy is to continue to grow Atlantic Coal and build up our access to further high quality anthracite assets.

I take this opportunity to remind shareholders that Atlantic is firmly established as one of the top five anthracite producers in the Pennsylvanian Anthracite Coal Field Belt and where the opportunity to rise up the ranks of producers is one that we are keen to continue to try and grasp. The securing of a US$5 million loan facility by Yorkville by means of a standby equity distribution agreement, should give investors and shareholders some comfort that outside financing agencies remain positive about the growth and financial prospects of your Company as we press ahead with our development strategy.

The operational performance of the Stockton mine was also commendable, with our management team again focused on working efficiencies in the year under review, in the face of considerable external pricing pressures and where, during the winter of 2013/ 2014, we experienced some of the most difficult working conditions ever faced at Stockton, with the "Polar Vortex" delivering extreme cold temperatures that made working conditions for our employees on site the most challenging ever.

I take this opportunity to remind shareholders that it was only back in 2011 when Stockton produced just over 100,000 tons of clean coal compared to this financial period where Stockton has produced 151,265 tons of clean coal, slightly down from our record production year of 2012 where we produced 161,183 tons of clean coal.

Critical in achieving cost reductions is the ability of Stockton to improve its mine strip ratio; accordingly I am delighted to report that during the period under review we were able to reduce our mine strip ratio of overburden to clean coal by 25% from 23.1 to 17.3.

We also announced after the reporting date a major equipment order placed for six Komatsu Model HD785-7 100 ton haul trucks and two CAT D9 dozers. Purchase of the equipment will be funded through a lease purchase agreement at a total cost of US$8.5m over six years, another sign of our commitment to shareholders to continue to invest and develop our mining operations.

Although Atlantic has made a loss before tax in this financial period of US$1,478,707, we have narrowed our loss from 2012 by US$ 1.18 million, clear evidence of our commitment to drive down cost and improve efficiency.

Finally, I wish to thank all our employees for making 2013 a year of consolidation, in what has been difficult trading conditions, hampered by severe unprecedented winter weather, but where your Company has still been able to operate safely and productively without loss time injury.

STRATEGIC REPORT

Business Review

The Stockton Mine

The producing Stockton Mine is located in the Pennsylvanian Anthracite Coal Field and includes an anthracite preparation plant capable of washing 450,000 tons of ROM coal per annum. The site, which is operated by Atlantic Coal's 100% subsidiary, Coal Contractors (1991) Inc., is now benefitting from the completion of the Norfolk Southern Railroad diversion in April 2012 and the on-going implementation of operational improvements have enabled production increases.

In Q1 2013, Stockton produced 53,131 tons of clean coal, a 67% increase over the corresponding period of 31,729 tons in Q1 2012. Q2 2013 results were also very positive with anthracite production increased by 24% quarter on quarter to 122,616 tons (Q1 2013: 98,529 tons). Q2 2013 also saw ROM stockpiles stand at 91,599 tons, a 265% increase in comparison with Q1 2013, designed with the intention to take advantage of an anticipated improved pricing environment with the onset of the heavy winter demand period.

In Q2 and Q3 2013, Atlantic Coal chose to reduce costs by scaling back operations in response to the traditional fall off in spring and summer demand as well as in resonse to softening prices and reduced industry demand. 59,270 tons of clean coal were produced in this six-month period, a year-on-year output reduction of 29%, before mining was increased in Q4 2013, including running the mine with double shifts, for the winter season, generating 41,555 tons of clean coal.

As part of the continual push for optimal operational efficiency, Atlantic Coal's onsite management has undertaken a rigorous review of all elements of the operation. The reassessment and re-design of blasting operations has been particularly fruitful, resulting in a 45% reduction in blasting costs. At current levels (blasting and excavating approximately 4 million cubic yards of overburden per year), it is estimated that the new blasting programme would result in continued significant operational savings.

Another key operational development announced on 11 June 2013 saw Stockton's clean coal reserve base increase by 29% to 1.777 million tons from 1.375 million tons. The upgrade followed the annual audit at 31 December 2012 by the independent consultant John T. Boyd Company. The reassessment followed record production in 2012 of 161,659 tons and, therefore, if that were to be taken into account, then it would represent an effective increase of over 560,000 tons on the 31 December 2011 reserve base (equivalent to a 41% increase). We estimate that this increase will extend the life of Stockton by approximately four years from 2020 to 2024, based on the 2012 production figure. The revised estimate is subject to completion of drilling to confirm the extent of prior by-passed coal on the south wall of the mine and development of an updated mine plan for the recovery of remaining coal.

Pott & Bannon

On 21 January 2013 Atlantic Coal exercised its up to 20-year lease option over the fully permitted Pott & Bannon anthracite mining property located in New Castle Township, Schuylkill County, approximately 25 miles from the Stockton Mine. At the time of the acquisition we announced that we believed that the property could contain up to 13.6 million tons ROM coal, equating to approximately 4.1 million tons of washed, saleable anthracite based on information provided to the Company in a report commissioned by the vendor, Reading Anthracite Company, in January 1999 and prepared by John T. Boyd Company. The average strip ratio was estimated to be 3.9 ROM. As such, the site was believed to have the potential to more than treble Atlantic Coal's existing reserves. Having minimised the cash portion payable as part of the transaction (consideration of US$6 million payable in cash, coal and shares, plus the grant of US$3 million worth of warrants over Atlantic Coal new ordinary shares at 0.75 pence per share), we believe that the lease option represents good value for shareholders.

During the year, we have progressed the mine planning and engineering process for Pott & Bannon with a view to accelerating resource definition and moving closer to mine operation. A qualified person is currently undertaking a reserve reassessment together with mine planning. We look forward to making further announcements regarding reserves and operational planning, including potential synergies with Stockton, at the appropriate time.

A separate option agreement to acquire additional anthracite mining assets in Pennsylvania, originally entered into on 15 February 2012, did not reach a successful outcome. The option, which was exercisable entirely at the Company's discretion at an exercise price of US$35 million, expired on 31 March 2013. Atlantic Coal subsequently held a number of discussions with the vendor in connection with the further extension of the option exercise period. However, following these discussions, the Board determined that an agreement on principal terms could not be achieved that would be acceptable to the Company and in the best interests of the Company's shareholders. Accordingly, discussions with the vendor were terminated, as announced on 13 May 2013.

Strategic Development China

In November 2013, we announced that we had entered into a joint venture agreement with China based CIC Brancepeth Coal Limited. We consider the agreement to be a useful strategic development, in that it opens up an option for Atlantic to sell up to 100,000 tons of coal into China a year at prices that would ensure the export transaction remains profitable to the Group. The joint venture agreement runs for an initial three-year period following which it may be extended by mutual agreement. We are yet to finalise the agreement and will keep shareholders posted on developments

Outlook

Despite continuing issues relating to overcapacity and significant cost pressures throughout the global steel production sector, total global demand for steel continues to increase, resulting in increased demand for metallurgical quality coal (including anthracite). However, the metallurgical coal market is also facing a low point with oversupply resulting in lower prices. Between June and August 2013, for example, the Australian hard coking coal price fell to below US$140 per ton, the lowest since 2010. Strong new supply coming online from Australia and Indonesia has been a key driver of the current low point in the market with high cost producers and those producing a less appealing semi-soft product face considerable challenges, particularly in the near-term. Recent and impending supply curtailments are expected to offset increased production elsewhere, contributing to closer supply-demand fundamentals.

Longer-term, these fundamentals suggest that prices have reached, or are close to reaching, the bottom of the market. Prices have yet to make a strong and sustained recovery. Indeed, in March 2014, Goldman Sachs cut its metallurgical coal price estimate for this coming year to US$141 per metric ton from US$150 and lowered projections for next year and 2016, citing oversupply and sluggish Chinese demand growth. On the other hand, the global steel industry is expected to make a recovery this year, led by a rebound of production in Europe and the rest of the world, offsetting the Chinese slowdown, and both ArcelorMittal and Tata Steel have recently noted modest improvements in demand for steel, offering grounds for cautious optimism for a price recovery.

Most importantly, while China and other Asian markets continue to increase steel production, demand for metallurgical quality coal is expected to remain strong. The brighter global economic outlook, with developed countries emerging more strongly than expected from the current downturn, can be expected to support consistent demand and, possibly, to drive demand more strongly than currently expected. Anthracite is the most versatile and high-quality metallurgical coal, and represents just 1% of the world's coal reserves. There are few new high-quality deposits in mining-friendly jurisdictions, which suggests a future supply imbalance, supporting future high prices.

Atlantic Coal is confident that demand for its products will continue across key domestic markets and anticipates a rebound in sales prices achieved over the near-term.

Results and Financial Review

The loss of the Group for the year ended 31 December 2013 before taxation amounts to $1,478,707 (year ended 31 December 2012 - $2,661,557).

Key financial highlights for the year to 31 December 2013 are:

· The Group's cash position during 2013 continued to decrease as we used existing cash balances to repay debt and finance leases. The Group also used cash to complete the Gowen mine reclamation and to pursue opportunities to acquire additional anthracite mining assets. We have again improved the production capacity at our Stockton Colliery and increased coal reserves.

· We have maintained turnover in spite of falling anthracite prices.

· Total debt decreased by over $2 million in 2013.

· Restoration obligations decreased with the final completion of seeding work at Gowen.

STATEMENT OF FINANCIAL POSITION

As at 31 December 2013

CONSOLIDATED INCOME STATEMENT

For the year ended 31 December 2013

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 December 2013

Significant Non Cash Transactions

Equipment totalling $468,592 was acquired under finance lease in 2013.

Exploration assets of $6,000,000 acquired in the year are being settled through the supply of coal to the vendor. An amount of $3,890,034 remains outstanding at the year end.

Also see "Significant Non Cash Transactions" of the Company Cash Flow Statement on page 20.

The Accounting Policies and Notes on pages 21 to 53 form part of these Financial Statements.

COMPANY CASH FLOW STATEMENT

For the year ended 31 December 2013

Significant Non Cash Transactions

In July and October 2013, the Company drew down $750,000 and $500,000 respectively, of its $5m loan facility with YA Global Masters SPV Limited (Note 28). Total proceeds received from the two drawdowns were $680,000 and $383,360, respectively, net of legal and administrative expenses due to YA Global Masters SPV Limited.

In November and December 2013, the Company issued 104,275,286 and 689,491,200 ordinary shares for total proceeds of $326,960 and $2,390,760. An amount of $2,472,492 was received by the Company, net of deductions for: share issue costs of $131,355; loan interest due of $8,873; and loan repayments of $105,000.

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2013

Basis of Preparation of Financial Statements

The Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and International Financial Reporting Interpretations Committee (IFRIC) interpretations and the parts of the Companies Act 2006 applicable to companies reporting under IFRS. The Financial Statements have also been prepared under the historical cost convention as modified by the revaluation of certain financial assets to fair value through the profit or loss.

The Financial Statements are presented in US Dollars rounded to the nearest dollar.

Atlantic Coal Plc, the legal parent, is domiciled and incorporated in the United Kingdom. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's Accounting Policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the Financial Statements are disclosed in Note 2.

The financial information set out above does not constitute the Company's statutory accounts within the meaning of Section 435 of the Companies Act 2006. The figures therein are based on the audited financial statements for the year ended 31 December 2013 which contain an unqualified audit report and are being despatched to shareholders today.

Segmental Information

Management has determined the operating segments based on reports reviewed by the Board of Directors that are used to make strategic decisions. During the year the Group had interests in two geographical segments, the United Kingdom and the United States of America ("USA"). Activities in the UK are mainly administrative in nature whilst the activities in the USA relate to coal production and sale of coal.

The reportable operating segments derive their revenue from the sale of prepared coal to industrial and retail customers.

A reconciliation of operating loss to loss before taxation is provided as follows:

Information about major customers

Revenues of approximately $2.197 million (2012: $3.056 million) were derived from a single external customer. These revenues were all generated in the USA.

Cash and Cash Equivalents

Earnings per Share

The calculation of the basic loss per share of 0.03cents (31 December 2012 loss per share: 0.07 cents) is based on the loss attributable to ordinary shareholders of $$1,478,707 (31 December 2012 loss: $2,661,557) and on the weighted average number of ordinary shares of 3,881,348,728 (31 December 2012: 3,868,772,016) in issue during the year.

The basic and diluted loss per share is the same, as the effect of the exercise of share options and warrants would be to decrease the loss per share.