Coal

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National Coal Corp. Signs Letter of Intent to Purchase Mining Assets of Appalachian Fuels, LLC
Thursday October 14, 8:00 am ET
http://biz.yahoo.com/bw/041014/145090_1.html

KNOXVILLE, Tenn.--(BUSINESS WIRE)--Oct. 14, 2004--National Coal Corp. (OTCBB:NLCP - News), a coal producer operating in Eastern Tennessee, is pleased to announce its wholly-owned subsidiary, National Coal Corporation, has entered into a non-binding letter of intent with Appalachian Fuels, LLC to purchase coal mining rights, leases and permits on 40,000 acres located on the Straight Creek and Pine Mountain mines in the South Eastern portion of Kentucky. National Coal expects to sign a definitive purchase agreement and close the transaction within 90 days.
National Coal would replace $6.5 million of the seller's reclamation and other bonds and will also acquire all leases, permits and mining equipment for approximately $12.5 million, plus the assumption of some current liabilities. Pending the close of the transaction, National Coal expects to immediately commence mining operations on all approved and permitted sites.

The transaction is the first acquisition National Coal has targeted outside the state of Tennessee and would assist the Company in fulfilling its growth strategy by expanding into other South Eastern states. When fully operational, the Company expects the mines to generate a substantial increase over their previous coal production rates.

"It has always been an important part of our business plan to foster sustained growth," said Jon Nix, president and CEO of National Coal. "This acquisition would be a significant step toward maintaining the success of this plan and would help in our attempt to secure and fulfill competitive contract commitments. As our mining efforts in the Southern Appalachian Region continue to grow, we will be able to better meet our customers' increasing demand for coal."

About National Coal Corp.

National Coal Corp., through its wholly-owned subsidiary, National Coal Corporation, owns coal mineral rights on approximately 70,000 acres in Eastern Tennessee. For more information, visit www.nationalcoal.com.

This release contains statements that are "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current estimates and projections about National Coal's business, which are derived in part on assumptions of its management, and are not guarantees of future performance, as such performance is difficult to predict. Examples of forward looking-statements include (i) the estimated closing date of the acquisition, and (ii) the estimated monthly coal production on the acquired property. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements due to numerous factors. Such factors include, but are not limited to, Appalachian Fuels unilaterally deciding not to close the transaction, the parties' inability to agree on the terms of a definitive agreement. National Coal's ability to rapidly and efficiently integrate the acquired operations into its existing operations, the occurrence of unanticipated delays in closing the acquisition, the demand for coal, the price of coal, the supply of coal and other competitive factors, the costs to mine and transport coal, the ability to obtain new mining permits, the costs of reclamation of previously mined properties, and the risks of expanding coal production. These and other risks are more fully described in the Company's filings with the Securities and Exchange Commission including the company's most recently filed Annual Report on Form 10-KSB and Quarterly Reports on Form 10-QSB, which should be read in conjunction herewith for a further discussion of important factors that could cause actual results to differ materially from those in the forward-looking statements.



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Contact:
National Coal Corp., Knoxville
Kearstin Patterson, 865-769-3749
or 865-207-3875 (cell)
[e-mail]
or
Cunningham & Company
Christine Pietryla, 312-334-9037
or 312-208-8776 (cell)
[e-mail]



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Source: National Coal Corp.