[R]11:15AM New York – Alpha Natural Resources rose sharply after the margins improved and prices of thermal coals rose.[/R]

Alpha Natural Resources, Inc an Appalachian coal supplier today reported coal revenues for first quarter 2008 climbed 17% to $445.7 million compared with first quarter 2007 revenue of $380.2 million. Total revenues in the first quarter rose 20% over last year to $516.9 million.

Earnings and margins expand

First quarter net income was $25.5 million or $0.39 cent per diluted share compare to $8.3 million or $0.13 cent per share for the same period a year ago.

Alpha's income from operations was $42.6 million in the latest quarter, compared with $20.2 million in the first three months of 2007.

Coal margin per ton, a key profitability measure for the company, rose 22% in the quarter to $12.52, as the higher-priced metallurgical business accounted for 42% of total sales volumes versus 36% in the corresponding period last year.

Total coal sales volumes for the quarter were 6.9 million tons, compared with 6.6 million tons sold in the first quarter of 2007.

Michael Quillen, Chairman and CEO said “Coal has joined the energy commodity boom and tight supplies are having a meaningful impact on prices, for both prompt deliveries and forward commitments.""

Alpha's average cost of coal sales per ton in the most recent quarter increased 11% from the comparable period in 2007, with produced and processed costs rising 10 percent and purchased coal costs increasing 12%.

In addition, Alpha and a subsidiary have amended their credit facility to increase the amount available under the revolving line of credit from $275.0 million to $375.0 million.

After completing the above transactions, as of April 15, Alpha had available liquidity of approximately $602.5 million, including cash of $315.7 million and $286.8 million available under the revolver.

Gallatin Materials experienced start-up issues after completing construction of its lime kiln in the first quarter. Recently the kiln has achieved normal production rates of up to 750 tons per day and Gallatin continues to work toward resolving the remaining production issues.

Gallatin fully expects the kiln to achieve a normalized state of operations by no later than mid-year and expects a positive contribution in the second half of 2008.

Global demand is on the rise

Global supplies of hard coking coals for making steel have tightened considerably due to production and logistics issues in Eastern Europe and Australia. With world steel output climbing an estimated 5% in the first two months of the year, prices for metallurgical coal have risen quickly as has international demand.

Alpha, the largest exporter of metallurgical coal out of the U.S., experienced a surge of 430,000 tons in its first-quarter exports, year-over-year, which boosted metallurgical coal sales to 42% of the company's total sales volumes for the quarter.

Quillen said that after the close of the first quarter, the company secured commitments for 2008 delivery on three-quarters of a million tons of planned metallurgical production, at price levels consistent with recently announced settlements with Japanese steelmakers. ""Those prices ranged from $295 to $305 per metric ton at the port, which correlates to a realized price for Alpha of approximately $240-250 per short ton at the mine,""

Kevin Crutchfield, Alpha's president added, ""We've now established a firm benchmark on price discussions for our 2009 metallurgical sales, where we still had considerable planned production -- more than 10 million tons -- left to commit and price as of mid-April.,""

Thermal coal prices on the rise and 2009 and 2010 sales outlook

On the thermal side, the company contracted substantially all of its remaining uncommitted but planned 2008 production (approximately 340,000 tons) at an average realization of approximately $87 per ton. Commitments were reached on approximately five million tons of planned thermal production for 2009, at an average realization of approximately $79 per ton.