Allegiance Coal Limited announced that Mr. Paul Vining has regrettably resigned as a director, and Chairman, of the Company. His reason for doing so is that Allegiance is taking advantage of the superior prices for thermal coal over metal urgical coal into the European utility market, currently available, by sel ing a number of thermal coal cargos. This unfortunately contradicts Mr. Vining's waiver from Westmoreland Coal where he also occupies the Chair, to join the Board of Al egiance.

Westmoreland is a significant North American producer of thermal coal.