- Completes acquisition of Triad Mining, Inc.

     - Completes equity and debt offerings

     - Completes refinancing of debt facilities

    RICHMOND, Va., May 31 /PRNewswire-FirstCall/ -- James River Coal Company
(Nasdaq: JRCC), a producer of steam- and industrial-grade coal, today
announced that it had completed the acquisition of Triad Mining, Inc., for a
purchase price of $75 million, consisting of $64 million in cash and shares of
the Company's common stock with a market value equal to $11 million.  The cash
portion of the purchase price was financed with proceeds from the Company's
offerings.  Triad owns and operates six surface mines and one underground mine
in Southern Indiana.
    The Company also announced that it had simultaneously completed its
concurrent offerings of 3,500,000 shares of common stock and $150,000,000 of
9.375% senior notes due 2012.  Of the total equity offering, 1,500,000 shares
were sold by the Company and 2,000,000 shares were sold by certain
shareholders of the Company.  The Company received proceeds of approximately
$191 million from those offerings, after underwriting discounts and
commissions.
    In addition, the Company announced that it had entered into a new $100
million senior secured credit facility with PNC Bank, National Association;
Morgan Stanley Senior Funding, Inc.; and its lending syndicate.  The facility
consists of a $75 million letter of credit facility and a $25 million
revolving credit facility.  In connection with entering into the new facility,
the Company repaid in full its previously existing Senior Secured Credit
Facility and its Term Credit Facility.

    FORWARD-LOOKING STATEMENTS: Certain statements in this press release, and
other written or oral statements made by or on behalf of us, are "forward-
looking statements" within the meaning of the federal securities laws.
Statements regarding future events and developments and our future
performance, as well as management's expectations, beliefs, plans, estimates
or projections relating to the future, are forward-looking statements within
the meaning of these laws. These forward-looking statements are subject to a
number of risks and uncertainties. These risks and uncertainties include, but
are not limited to, the following: a change in the demand for coal by electric
utility customers; the loss of one or more of our largest customers; inability
to secure new coal supply agreements or to extend existing coal supply
agreements at market prices; failure to exploit additional coal reserves,
including contiguous reserves to those currently held by Triad; inability to
sell the coal from Mine 15 into the metallurgical coal market; failure to
diversify our operations; increased capital expenditures; encountering
difficult mining conditions; increased compliance costs; bottlenecks or other
difficulties in transporting coal to our customers; lack of availability of
financing sources; the effects of regulation and competition; additional
turnover of employees and independent contractors; the risk that the Company
is unable to successfully integrate the Triad business; and the risk factors
detailed in our S-1 registration statement initially filed with the Securities
and Exchange Commission on April 19, 2005, which factors are incorporated
herein by reference. Management believes that these forward-looking statements
are reasonable; however, you should not place undue reliance on such
statements. These statements are based on current expectations and speak only
as of the date of such statements. We undertake no obligation to publicly
update or revise any forward-looking statement, whether as a result of future
events, new information or otherwise.
    Additional information concerning these and other factors can be found in
James River Coal Company's public filings with the Securities and Exchange
Commission.

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