Atlantic Coal Regulatory News (ATC)

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

H1 2015 positive production and sales update

Stockton mine development, wash plant and coal transportation update

Atlantic Coal, the AIM listed anthracite coal mining company operating in Pennsylvania, USA announces a positive production and sales update ahead of the close of its half year ended 30 June 2015 together with an update on the development progress at its Stockton anthracite mine ("Stockton"), located near Hazleton, Pennsylvania.

H1 2015 estimated key production:

· Clean coal production of approximately 91,000 tons (H1 2014: 83,303 tons);

· Total coal sales of approximately 103,000 tons (H1 2014: 75,761 tons) including clean coal sales of approximately 72,000 tons and run of mine (ROM) coal sales of approximately 31,000 tons;

· Clean coal stockpile of approximately 32,000 tons (H1 2014: 10,934 tons);

· Run of Mine ("ROM") production of approximately 284,000 tons (H1 2014: 191,007 tons);

· ROM stockpile of approximately 82,000 tons (H1 2014: 52,281 tons);

· Bank cubic yards ("BCY") of overburden removed of approximately 2,100,000 (H1 2014: 1,351,240) BCY); and

· Wash recovery rate of approximately 53% (2014: 41.8%).

Estimated production summary H1 2015 (% change on H1 2014):

Based on the above production data the directors of the Company (the "Directors") anticipate that the Group's revenue for the six months ended on 30 June 2015 will be in the region of $10,300,000 which compares favourably with H1 2014 revenue of $9,447,000. The Directors expect that this will translate into substantial stronger H1 2015 results as compared with those of H1 2014.

These production figures demonstrate the positive impact of both the new equipment fleet and the additional coal in the basin on the costs of production.

Stockton mine development update

The Company is pleased to announce that it has completed removing coal from the basin of the cut being worked in Q1 and that this did in fact prove to be almost solid coal in the Mammoth seam averaging 30ft thick.

The Group is now working on removing the overburden on the next cut. With the new fleet of equipment now fully operational the Directors anticipate starting to dig basin coal by the beginning of October 2015. Based on our experience of the previous cut, and on old underground mine plans, the Directors are optimistic on the prospects of this new cut both in terms of its solidity and thickness.

Stockton wash plant update

The Company has acquired and installed a Wemco 8' x 8' heavy media drum in its wash plant. This drum replaces the original smaller drum which is at the end of its service life. The Directors anticipate that the new larger drum will enable an increase in run of mine feed through the wash plant with positive clean coal production and cost benefits during H2 2015.

Coal transportation update

Coal transportation by rail has been significantly improved with the completion of a rail siding and loading platform located on the Stockton mine site. The Directors anticipate that direct access to the Stockton Mine rail stop loading facilities on the Reading Blue Mountain and Northern Railroad will enhance loading logistics and reduce costs associated with rail transportation of coal to industrial customers.

The Directors remain confident that improved H1 2015 mine operating efficiencies and production will contribute positively to the Group's performance during 2H 2015.

Atlantic Coal's Managing Director, Steve Best, commented: "I am delighted to report what we anticipate will be continued excellent performance in Q2 building on what we saw in Q1. On the basis that we expect to be in the basin on the new cut by the beginning of October we look forward with confidence to the remainder of the year."

**ENDS**

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

Steve Best Atlantic Coal plc Tel: 0191 386 6392

Nick Naylor Allenby Capital Limited Tel: 020 3328 5656

Alex Price Allenby Capital Limited Tel: 020 3328 5656