ECR Schedules

Exhibit 1
Energy Coal Resources, Inc.

Conclusion of Value - Minority Basis
As of December 31, 2008
US Dollars
Indicated Value
Non-Operating
of Invested Capital +
Assets
Interest Bearing
-
Debt
Preferred
-
Series A
Indicated Value
=
of Equity
Weighted
Weighting
Value
Income Approach
Discounted Cash Flow Method [See Exhibit 8] (1)
Err:522
1,376,579
110,046,624
20,409,527
1,376,579
110,046,624
20,409,527
Err:522
50.0%
Err:522
Market Approach
Guideline Company Method [See Exhibit 9]
372,417,055
243,337,483
50.0%
Fair Value of Equity - Marketable Minority Interest Level

Less: Discount for lack of marketability [See Exhibit 14]
Fair Value of Equity - Nonmarketable Minority Interest Level
Number of shares outstanding (actual)
(2)
Fair Value of Equity - Nonmarketable Minority Interest Level - Per Share Basis
Notes:
(1) See the Crowe Report on the Fair Value of Series A Preferred
(2) from Consolidated Statements of Operations, unaudited Financial Statement for 2008.
121,668,742
Err:522
Err:522
Err:522
Err:522
30,312,749
Err:522
Exhibit 2A
Balance Sheets
US Dollars
CONSOLIDATED BALANCE SHEETS
December31
2006
2007
Assets
Current assets:
Cash and cash equivalents
$
Restricted cashcurrent
Accounts receivable
Accounts receivableaffiliate
Inventories
Advance royaltiescurrent
Deferred tax assetcurrent
Assets held for sale, net
Prepaid expenses and other current assets
Total current assets
Property, plant, and equipment, at cost, including mineral
reserves, mine development, and contract costs
Less accumulated depreciation, depletion, and amortization
359,691,258
35,863,385
375,841,677
70,350,598
Total property, plant, and equipment, net

Notes receivable
Assets of discontinued operation
323,827,873
473,813
101,282,852
305,491,079
2,267,779
Debt issuance costs / Financial costs, net

Goodwill
Restricted cash, long-term
Debt service reserve account
Accounts receivable, long-term
Advanced royalties, long-term
Other noncurrent assets
8,750,574
148,877,770
22,568,900
8,004,472
4,738,834
4,610,251
6,011
7,553,822
138,822,353
26,573,452
9,172,660
108,478
4,465,197
6,011
Total assets
Sources:
(1) Form S-1, SEC Filing and 2008 audited Financial Statements.
4,613,112 $
2,001,118
44,235,892
1,106,408
8,092,656
1,950,727
9,352,396
8,868,829
10,242,300
90,463,438
713,604,788
7,809,159
100,263
23,321,241
4,291
6,707,405
1,381,150
17,993,489
2,723,835
6,145,529
66,186,362
560,647,193
Exhibit 2B
(in thousands, except per ton and per share data)
CONSOLIDATED BALANCE SHEETS
December31
2006
2007
Liabilities and stockholders'equity
Current liabilities:
Accounts payable
Accounts payableaffiliate
Current portion of long-term debt
Current portion of unfavorable coal sales contracts
Current portion of asset retirement obligation
Income taxes payable
Accrued payroll, bonus, and vacation
Accrued expenses
Total current liabilities
Noncurrent liabilities, less current portion:
Long-term debt
Asset retirement obligation
Long-term portion capital leases
Long-term portion of unfavorable coal sales contracts
Postretirement medical benefit liability
Deferred income taxes
Liabilities of discontinued operations
Other noncurrent liabilities
Total noncurrent liabilities
Total liabilities
Equity of Minority Interest
Stockholders' equity:
Common stock,
Preferred stock
Paid-in capital
Other comprehensive loss
Retained earnings (deficit)
Total stockholders'equity
Total liabilities and stockholders'equity
Sources:
49,200,612 $
26,840,421
11,064,093
42,657,717
71,532,060
2,538,171
9,151,225
490,500
25,969,989
35,220,985
1,364,234
1041747
12,129,826
11,381,686
197,525,564
13,028,206
116,085,908
90,973,532
29,470,580
140,649,321
62,435,599
30,568,092
94,664,053
816,300
9,352,396
65,535,680
24,898,621
1,853,425
337,834,934
535,360,498
464,032
213,846,697
329,932,605
303,127
303,127
211,375,573
211,375,573
-33,434,410
178,244,290
-488,964
19,524,852
230,714,588
713,604,788
560,647,193
June30
2008
2,738,553 $
193
16,578,635
558
20,291,043
2,297,601
15,294,809
1,487,001
10,153,514
68,841,907
December 31
2008
6,494,777
25,165,943
9,028
9,273,966
5,432,347
11,174,115
1,498,571
6,044,249
65,092,996
392,470,106
83,359,844
440,887,069
104,378,615
309,110,262
2,245,036
336,508,454
1,376,579
6,909,608
138,822,353
27,129,598
6,282,713
307,659
4,606,416
6,011
6,065,928
138,822,353
28,539,268
2,307,755
427,716
4,501,527
6,011
564,261,563 $
583,648,587
June30
2008
December 31
2008
50,612,961 $
51,565,887
102,000
81,844,472
33,288,859
1,676,209
639247
10,549,925
34,000
67,318,273
25,921,440
3,430,842
522000
10,785,995
25,434,170
204,147,843
16,945,694
176,524,131
25,703,569
28,995,931
91,070,521
1,028,327
39,641,310
28,195,467
26,024,596
22,037,122
233,706
173,056,650
377,204,493
385,104
183,875,698
360,399,829
303,127
303,127
211,375,573
211,375,573
-488,964
-24,132,666
187,057,070
(488,964)
12,059,022
223,248,758
564,261,563 $
583,648,587
92,376,342
1,240,353
Exhibit 3
Income Statements
US Dollars
December31
2006
Revenues
Coal sales (including amounts to related parties)
Synfuel revenues
Other revenues
Six months ended
2007
$ 336,119,014
17,229,134
858,550
$ 281,267,359
974658
-1,399,971
Commissions
Total revenues
Costs and expenses
Cost of coal production
Cost of synfuel production
-2,518,980
351,687,718
-941,655
279,900,391
330,661,951
15,197,546
246,040,318
Loss on asset impairment

Cost of operations
Depreciation, depletion, and amortization
13,957,655
359,817,152
39,704,113
194,649
246,234,967
44,311,498
Sales contract (accretion)
-59,246,287
-75,433,329
Selling, general, and administrative
26,483,982
39,795,082
Total costs and expenses

(Loss) income from operations
366,758,960
-15,071,242
254,908,218
24,992,173
Other (expense) income

Interest expense
Interest income
Gain (loss) on sale of assets
-18,644,285
1,327,821
1,062,919
-24,371,512
1,646,410
1,214,138
-2,839,312
-3,768,148
Total other expense

(Loss) earnings from continuing operations before taxes
Income tax provision
-19,092,857
-34,164,099
-2,666,730
-25,279,112
-286,939
573,996
(Loss) earnings from continuing operations

Earnings (loss) from discontinued operations
-31,497,369
4,000,095
-860,935
377,764
53,442,433
Other, net
Gain on sale of discontinued operations, net of taxes

Net (loss) earnings
$ -27,497,274
Sources:
52,959,262
June30, 2008
$
Resources, Inc.
Six months ended December31
June30, 2008
2008
117,510,374
-558,869
$ 412,581,416
17,229,134
-1,250,531
-622,120
116,329,385
-1,092,083
427,467,936
126,068,538
341,058,469
191,523
126,260,061
16,423,212
272916
341,331,385
37,676,744
-5,525,659
-11,587,256
15,247,567
42,889,433
152,405,181
-36,075,796
410,310,306
17,157,630
-4,444,134
752,289
-98,019
-14,659,223
1,300,957
-468,375
32,797
10,453,535
-3,757,067
-3,373,106
-39,832,863
3,824,655
13,784,524
4,021,220
-43,657,518
9,763,304
-43,657,518
9,763,304
Exhibit 4A
Comparable Financial Ratios
In Millions of USD, Except for Ratios
2008
Energy
Coal
Resources,
Inc.
LTM 12 months Sep-30-2008
Arch Coal
Inc.
Foundatio
n Coal
Holdings
Inc.
ANR
ACI
FCL
Alpha
Median of
Natural
GPCS
Resources
ECR
Profitability
Return on Assets %
Return on Equity %
1.71%
4.30%
5.90%
0.85%
10.17%
30.72%
7.47%
23.39%
0.82%
(6.65%)
20.15%
13.29%
21.12%
16.92%
20.14%
16.92%
26.38%
25.15%
21.12%
15.33%
EBIT Margin %
4.16%
9.57%
9.57%
15.31%
1.57%
Net Income Margin %
2.37%
0.28%
7.12%
12.88%
(1.29%)
Margin Analysis
Gross Margin %
EBITDA Margin %
Asset Turnover
Total Asset Turnover
Fixed Asset Turnover
0.7x
1.3x
0.8x
1.4x
1.7x
3.9x
0.8x
1.1x
0.8x
4.1x
Accounts Receivable Turnover
17.0x
11.3x
11.3x
12.7x
13.7x
Inventory Turnover
51.6x
19.8x
24.5x
13.4x
29.8x
0.4x
1.6x
3.5x
1.0x
1.1x
0.2x
21.5
1.1x
32.3
2.9x
32.3
0.4x
28.9
0.7x
26.7
7.1
18.5
14.9
27.4
12.3
Total Debt/Equity
47.91%
80.22%
70.51%
76.70%
207.27%
LT Debt/Equity
17.76%
78.82%
70.48%
54.66%
204.38%
Total Liabilities/Total Assets
61.75%
61.18%
57.18%
55.61%
84.75%
Short Term Liquidity

Current Ratio
Quick Ratio
Avg. Days Sales Out.
Avg. Days Inventory Out.
Long Term Solvency
EBIT / Interest Exp.

EBITDA / Interest Exp.
n.m.
4.1x
4.7x
7.4x
5.4x
9.6x
5.7x
9.3x
0.5x
5.0x
Total Debt/EBITDA
2.0x
2.4x
1.3x
1.8x
2.4x
Total Asset
SG&A / Total Revenues
Working Capital
WC/Sales
Working Capital, Debt Free
584
0.10x
(111)
1,898 $
0.04x
95
1,725
3,942
1,898
0.03x
699
0.04x
(19)
0.05x
23
1.42%
-26.07%
9.11%
28.37%
-0.67%
(21.26)
40.24
138.76
325.10
7.41
Notes:
[1] n.m. = Non-meaningful.
[2] Comparable companies' LTM 12 months information as of Sep. 30 2008 was based on Capital IQ.
[3] The 2008 information for Energy Coal Resources, Inc. was based on ECR's unaudited financial statements.
p-30-2008
Massey
Internationa
Energy
l Coal Group Company
ICO
MEE
(0.35%)
(19.63%)
5.90%
0.85%
11.29%
7.98%
23.66%
20.80%
(0.77%)
11.39%
(11.03%)
0.28%
0.7x
1.0x
0.8x
1.4x
10.6x
11.3x
19.8x
11.0x
1.6x
2.1x
1.1x
34.5
1.6x
32.4
18.5
33.4
80.22%
139.81%
78.82%
139.63%
61.18%
72.67%
NM
2.2x
4.1x
7.4x
5.1x
2.6x
505
3,886
0.06x
95
0.03x
797
9.11%
28.56%
40.24
(101.66)
cial statements.
Exhibit 4B
6 months June-30-2008
Energy
Coal
Alpha
Resources, Median of
Natural
Inc.
GPCS
Resources
ECR
Arch Coal
Inc.
Foundatio
n Coal
Holdings
Inc.
ACI
FCL
ANR
Profitability
Return on Assets %
Return on Equity %
(14.70%)
(39.59%)
0.29%
1.01%
n.a.
n.a.
9.96%
23.25%
0.18%
1.02%
Gross Margin %
EBITDA Margin %
(3.46%)
(12.13%)
23.50%
23.06%
n.a.
n.a.
27.05%
28.99%
21.78%
17.14%
EBIT Margin %
(24.18%)
8.02%
n.a.
19.23%
3.60%
Net Income Margin %
(31.45%)
0.35%
n.a.
13.08%
0.21%
Margin Analysis
Asset Turnover
0.5x
0.9x
0.9x
1.3x
n.a.
n.a.
0.8x
1.1x
1.2x
2.4x
12.7x
12.4x
n.a.
11.4x
36.8x
Inventory Turnover
20.2x
16.7x
n.a.
12.2x
29.9x
0.3x
1.3x
1.5x
0.9x
1.3x
Quick Ratio
0.1x
28.7
0.9x
29.7
1.2x
n.a.
0.3x
32.1
0.9x
9.9
18.1
23.6
n.a.
29.9
12.2
Total Debt/Equity
57.49%
81.83%
81.83%
77.24%
171.28%
LT Debt/Equity
13.74%
55.47%
37.38%
55.47%
171.28%
66.85%
61.40%
60.29%
56.24%
81.94%

Current Ratio
Long Term Solvency

n.m.
n.m.
5.4x
10.3x
n.a.
n.a.
7.4x
11.2x
2.5x
12.0x
Total Debt/EBITDA
n.m.
2.0x
n.a.
1.6x
2.1x
Others
Total Asset
Working Capital
WC/Sales
564 $
0.12x
(135)
-102.92%
(56.20)
1,939 $
0.04x
63
1,679
3,949
1,939
n.a.
312
0.04x
(45)
0.05x
63
4.04%
13.82%
-1.67%
4.04%
29.43
201.72
329.64
(9.12)
Notes:
[2] Source from Capital IQ
08
Internation
al Coal
Group
Massey
Energy
Company
ICO
MEE
0.39%
1.00%
(3.41%)
(13.39%)
11.72%
8.20%
25.21%
45.51%
(0.60%)
12.45%
0.49%
(3.57%)
0.8x
1.1x
1.0x
1.5x
9.8x
13.4x
21.2x
11.6x
0.7x
1.5x
0.5x
37.1
0.9x
27.2
17.2
31.5
80.00%
146.91%
35.69%
146.65%
61.40%
76.26%
n.m.
5.0x
5.4x
9.3x
4.8x
1.8x
1,347
3,166
0.04x
(133)
0.04x
307
-14.10%
11.67%
29.43
(70.80)
Exhibite 4C
12 months Dec-31-2007
Energy Coal
Resources,
Inc.
Alpha
Median of
Natural
GPCS
Resources
ECR
Arch Coal
Inc.
Foundatio
n Coal
Holdings
Inc.
ACI
FCL
ANR
Profitability
Return on Assets %
Return on Equity %
8.31%
25.90%
3.63%
10.28%
3.93%
7.65%
3.78%
12.08%
2.73%
10.28%
12.03%
24.83%
20.52%
17.54%
15.57%
12.81%
21.63%
18.68%
24.62%
19.73%
9.00%
5.67%
3.95%
8.66%
5.67%
18.92%
2.20%
1.48%
7.25%
2.20%
Margin Analysis
Gross Margin %
EBITDA Margin %
EBIT Margin %
Net Income Margin %
Asset Turnover
0.4x
0.9x
0.8x
1.3x
1.6x
2.9x
0.7x
1.0x
0.8x
2.3x
8.2x
10.9x
10.4x
10.9x
13.2x
33.2x
19.6x
21.5x
12.3x
27.7x
0.6x
1.7x
1.7x
0.9x
1.2x
Quick Ratio
0.3x
44.5
1.1x
33.4
1.1x
35.1
0.5x
33.4
0.7x
27.7
11.0
18.6
17.0
29.7
13.2
Total Debt/Equity
38%
117%
117%
85%
178%
LT Debt/Equity
27%
112%
112%
71%
178%
59%
69%
69%
57%
82%
Inventory Turnover
Current Ratio
Long Term Solvency

1.0x
n.m.
2.0x
5.7x
1.8x
6.0x
2.8x
6.0x
1.6x
5.5x
Total Debt/EBITDA
n.m.
2.6x
1.9x
2.9x
2.0x
Others
Total Asset
Working Capital
WC/Sales
561
0.14x
(50)
-17.83%
(36.04)
1,908 $
0.03x
118
1,211
0.03x
157
0.03x
(35)
0.05x
39
8.33%
8.33%
-1.47%
2.66%
124.24
124.24
3,595
177.16
1,908
(10.57)
Notes:
7
Massey
Internationa
Energy
l Coal Group Company
ICO
MEE
(3.17%)
(25.08%)
3.63%
12.70%
6.29%
2.36%
20.52%
17.54%
(7.82%)
6.79%
(17.32%)
3.93%
0.6x
0.9x
0.9x
1.3x
10.3x
13.2x
19.6x
10.2x
1.8x
2.4x
1.4x
35.3
1.5x
27.7
18.6
35.9
80%
141%
79%
141%
61%
73%
NM
0.6x
2.2x
5.7x
20.5x
2.6x
1,304
2,861
0.04x
118
0.03x
520
13.89%
21.68%
15.03
156.19
Exhibite 4D
###
12 months Dec-31-2006
Energy Coal
Resources,
Inc.
Arch Coal
Inc.
Foundatio
n Coal
Holdings
Inc.
ANR
ACI
FCL
3.03%
9.86%
7.99%
46.04%
5.59%
20.47%
3.03%
9.86%
Alpha
Median of
Natural
GPCS
Resources
ECR
Profitability
Return on Assets %
Return on Equity %
NA
NA
Margin Analysis
Gross Margin %
EBITDA Margin %
1.66%
10.97%
18.15%
14.85%
18.15%
14.85%
21.94%
19.73%
25.27%
20.78%
EBIT Margin %
(0.32%)
6.53%
7.23%
11.40%
6.53%
Net Income Margin %
(7.82%)
2.14%
6.71%
10.44%
2.14%
Asset Turnover
NA
NA
0.8x
1.2x
1.8x
3.1x
0.8x
1.2x
0.7x
2.4x
NA
12.5x
11.8x
12.8x
12.5x
Inventory Turnover
NA
16.4x
20.4x
15.0x
16.4x
Current Ratio
0.5x
1.2x
1.5x
1.1x
1.2x
Quick Ratio
0.3x
NA
0.8x
29.1
0.9x
31.0
0.6x
28.6
0.8x
29.1
22.2
17.9
24.4
22.2
NA
Long Term Solvency

Total Debt/Equity
75%
136%
136%
86%
210%
LT Debt/Equity
51%
122%
122%
82%
210%
75%
70%
70%
59%
85%

NM
n.m.
2.4x
4.7x
3.3x
6.8x
4.4x
7.7x
1.5x
4.7x
Total Debt/EBITDA
n.m.
2.4x
1.7x
2.4x
2.1x
Others
Total Asset
Working Capital
714
0.08x
(107)
1,950 $
0.04x
46
1,146
0.04x
116
0.03x
46
0.04x
37
6.12%
1.86%
2.52%
95.13
3.33
WC/Sales
-30.44%
3.66%
(406.85)
95.13
131.22
3,321
1,950
Notes:
s Dec-31-2006
International
Coal Group
Massey
Energy
Company
ICO
MEE
(0.55%)
(1.41%)
1.41%
5.41%
10.89%
6.99%
16.34%
14.04%
(1.18%)
2.97%
(1.05%)
1.89%
0.7x
1.2x
0.8x
1.2x
12.5x
12.2x
25.7x
6.8x
1.2x
2.3x
0.8x
29.1
1.2x
30.0
14.2
53.9
30%
158%
27%
158%
50%
75%
NM
3.4x
0.7x
3.5x
3.2x
3.6x
1,317
2,741
0.04x
32
0.02x
445
3.66%
20.48%
35.23
208.53
Exhibit 5
Weighted Average Cost of Capital - Size Risk Premium Analysis
All dollar amounts in millions (except otherwise noted)
Book Value of Equity
Total Assets
Smoothed Premium = 8.766% - 1.870% * Log(Book Value)
Smoothed Premium = 8.970% - 1.648% * Log(Total Assets)
Constant:
Std Err of Y Est:
R Squared
No. of Observations
Degrees of Freedom
8.77%
79.99%
Constant:
Std Err of Y Est:
68%
R Squared
25
23
No. of Observations
Degrees of Freedom
8.97%
0.95%
58%
25
23
X Coefficient(s)
-1.87%
X Coefficient(s)
-1.65%
Std Err of Coef.

t-Statistic
26.50%
-7.07
Std Err of Coef.

t-Statistic
0.29%
-5.62
Book Value
$223
Total Assets
$584
Output
4.4%
Output
4.4%
Sales
Number of Employees
Smoothed Premium = 8.438% - 1.446% * Log(Sales)
Smoothed Premium = 10.438% - 1.776% * Log(Employee)
CoConstant:
Std Err of Y Est:
8.44%
10.44%
0.95%
Std Err of Y Est:
0.97%
R Squared
No. of Observations
51%
25
R Squared
No. of Observations
63%
25
Degrees of Freedom
23
Degrees of Freedom
23
X Coefficient(s)
Std Err of Coef.
t-Statistic
Sales
-1.45%
0.30%
X Coefficient(s)
Std Err of Coef.
-4.9
t-Statistic
$427
Employees
Output
4.6%
Output
Book Value of Equity
4.4%
Total Assets
4.4%
Sales
4.6%
"1" Include and "0" Not Include
-1.78%
0.29%
-6.21
Exhibit 5
Weighted Average Cost of Capital - Size Risk Premium Analysis
All dollar amounts in millions (except otherwise noted)
Average
4.5%
Exhibit 6
Cost of Equity: CAPM Approach
Guideline
Companies
Risk-free rate (20-year government bonds)
(1)
3.05%
Equity risk premium - stocks over bonds
(2)
6.20%
Industry median beta
(3)
Err:522
Levered
Beta (6)
Unlevered
Beta
Relevered
Beta
ANR
1.47
1.14
Err:522
ACI
FCL
ICO
MEE
1.85
1.63
1.61
1.79
1.22
1.03
0.99
0.86
Err:522
Err:522
Err:522
Err:522
1.63
1.03
Err:522
Err:522
Equity size premium
(4)
4.47%
Median
Premium for specific company risk
(5)
9.00%
Cost of Capital Yearbook September 2008 Data (Medians)

SIC 122
1.74
1.36
Cost of equity discount rate
Err:522
Notes:
(1) The 20-Year Treasury Yield from http://www.federalreserve.gov/releases/h15/data/Business_day/H15_TCMNOM_Y20.txt
(2) Long-horizon expected equity risk premium,Supply side, from Morningstar's SBBI 2008 Valuation Yearbook.
(3) We considered the medians of Relevered Beta of comparable companies , relevered using the Company's capital structure.
(4) Duff & Phelps size risk premium analysis. Please see Exhibit 5
(5) Based on forecast risk and uncertainties related to future economy.
(6) Company specific data are from Capital IQ.
Exhibit 7
Weighted-Average Cost of Capital
US Dollars, Except for Ratios
MV Capital Structure ($ values in millions)
Assumptions:
Cost of debt
MV Equity
1,436.708
Total
$ 1,957.618
Debt
/Invested
Capital
26.6%
1,342.056
2,312.952
3,655.008
36.7%
63.3%
100%
599.785
425.796
646.508
393.981
1,246.293
819.777
48.1%
51.9%
51.9%
48.1%
100%
100%
1,484.907
1,263.403
2,748.310
54.0%
46.0%
100%
48.1%
52.0%
Cost of Capital 2008 Yearbook, page 1-3, industry SIC 12
23.3%
76.7%
Cost of Capital 2008 Yearbook, page 1-4, industry Sic 122
23.3%
76.7%
15.75% (1)
ANR
Debt
$ 520.910
Cost of equity
Err:522 (2)
ACI
Tax rate
% Debt
38.90% (3)
Err:522 (4)
FCL
ICO
% Equity
Err:522 (4)
MEE
Debt
Cost
1 - tax rate
15.75% x
61.10%
Estimated
Equity
WACC discount rate
Cost
9.62%
Err:522
Weighted
Proportion
Err:522 =
Cost
Err:522
Err:522 =
Err:522
Median
Err:522
Notes:
(1) on the Yields of bonds issued by the comparable companies plus 1% credit spread + 1.5% illiquidity premium. Data for ratings and yields of comparable companies is Bloomberg.
(2) Exhibit 6.
(3) Estimated combined Federal and State effective tax rates obtained from www.taxfoundation.org.
(4) Based upon the Enery Coal's own capital structure, calculated as interest bearing debt (from Ex 1)/ (interest bearing debt +shareholders equity (Ex 2))
Equity/
Invested
Capital
73.4%
Total
100%
Exhibit 8
Discounted Cash Flow Analysis
Valuation Date: December 31, 2008
USD dollars
For the years ended:
2006
Revenue (1)
351,687,718
Growth
Cost of Sales (1)
Cost of Sales Margin
Gross profit (1)
$359,817,152
102.31%
($8,129,434)
-2.31%
$26,483,982
Gross Margin
SG&A Expenses (1)
SG&A %
7.53%
EBITDA
($34,613,416)
EBITDA Margin
2007
279,900,391
-20.41%
EBIT
EBIT Margin
2009
427,467,936
52.72%
486,744,835
13.87%
2010
$
539,130,675
10.76%
2011
$
547,944,511
1.63%
2012
$
563,740,511
2.88%
$246,234,967
87.97%
341,331,385
79.85%
324,559,314
66.68%
339,807,536
63.03%
341,289,892
62.29%
342,553,572
60.76%
$33,665,424
12.03%
$39,795,082
$86,136,551
20.15%
$42,889,433
$162,185,521
33.32%
$40,172,166
$199,323,139
36.97%
$47,545,101
$206,654,619
37.71%
$49,016,478
$221,186,939
39.24%
$47,816,478
14.22%
($6,129,658)
-9.84%
Less Depreciation (1)
2008
-2.19%
$39,704,113
$44,311,498
($74,317,529)
-21.13%
($50,441,156)
-18.02%
10.03%
$43,247,118
10.12%
$37,676,744
$5,570,374
1.30%
Net Operating Loss Carryforward (2)
8.25%
$122,013,355
25.07%
8.82%
$151,778,038
28.15%
8.95%
8.48%
$157,638,141
$173,370,461
28.77%
30.75%
$48,105,904
$48,055,665
$52,898,229
$52,898,229
$73,907,451
15.18%
$103,722,374
19.24%
$104,739,912
19.12%
$120,472,232
21.37%
Terminal Value
$
583,471,429
3.50%
354,542,947
60.76%
$228,928,482
39.24%
$49,490,055
8.48%
$179,438,427
30.75%
$44,858,752
$134,579,675
23.07%
$4,887,148
Less taxes
38.90%
$26,848,898
$40,348,003
$40,743,826
$46,863,698
$52,351,494
Net Operating Profit After-Tax

(NOPAT)
$47,058,553
$63,374,370
$63,996,086
$73,608,534
$82,228,181
Plus: Depreciation
Less: Change in working capital
Less: Capital Expenditures (3)
$48,105,904
40,015,602
$34,741,576
$48,055,665
2,019,069
$41,796,789
$52,898,229
339,705
$43,341,789
$52,898,229
608,814
$43,341,789
$44,858,752
760,474
$44,858,752
$20,407,279
$67,614,177
$73,212,820
$82,556,160
$81,467,707
Debt-free, Net Cash Flow

Sustainable growth rate (4)
WACC rate [Exhibit 6]
Period
PV Factor
Present Value
3.50%
Err:522
0.5
Err:522
Err:522
Present value of interim cash flows
Err:522
Terminal value
Err:522
Indicated value of invested capital - control
1.5
Err:522
Err:522
2.5
Err:522
Err:522
3.5
Err:522
Err:522
Residual Cash Flow
Err:522
$81,467,707
Divided by: Cap Rate

Equal: Residual Value
Err:522
Err:522
Times: PV Factor
Err:522
PV of Terminal Value
Working capital analysis:
Revenue
Existing debt-free woking capital (5)
Required debt-free working capital
Change in working capital
2009
$486,744,835
(21,255,357)
18,760,245
40,015,602
Selected rate of working capital debt-free as % Sales

3.85%
Notes:
(1) The historical numbers are from the S1 document and Financial Statements; the projected numbers are based on Energy Coal forecasts.
(2) Amortized in the first year.
(3) The values for 2009-2012 are based on Energy Coal's projections; For the Terminal Value CapEx equals the Depreciation.
(4) sustainable growth rate = expected long term inflation plus half of the expected GDP growth, based on Livingston Survery, December 2008 .
(5) The value for 2009 is calculated as ECR's end of 2008 debt-free working capital.
2010
$539,130,675
18,760,245
20,779,314
2,019,069
2011
$547,944,511
20,779,314
21,119,019
339,705
Err:522
2012
$563,740,511
21,119,019
21,727,832
608,814
Terminal Value
$583,471,429
21,727,832
22,488,307
760,474
Exhibit 9
Publicly-Traded (Guideline) Comparable Company Method - Summary
US Dollars
Market
Multiple
Projected
Company
Amount (1)
Indicated
Equity Value
Weighting
Weighted
Value Indicator
Equity Multiples
Price to EBITDA
5.1x
Price to Sales
0.7x
82,630,237
457,106,385
420,773,811
50%
311,070,745
50%
Indicated value of invested capital - minority, before adding cash
155,535,372
Plus: Cash
Indicated value of equity - minority
365,922,278
6,494,777
Notes:
(1) Average of the 2008 and projected 2009 values. The 2008 values are from Exhibit 3 and the projected 2009 values are from Exhibit 8.
(2) The Market multiple is based on the mean multiple of the comparable companies in Exhibit 10.
210,386,906
372,417,055
Exhibit 10
Publicly-Traded (Guideline) Comparable Company Method - Detailed
All dollar amounts in millions (excep otherwise noted)
Stock
Outstanding
Equity
Total
Cash &
Enterprise
Total
Ticker
Price
Shares
Value
Debt
ST Inv.
Value (2)
Assets
1 Alpha Natural Resources
ANR
$ 16.2
70.5
$ 1,141.3
$ 539.1
$ 676.2
$ 1,004.3
$ 1,728.3
2 Arch Coal Inc,
ACI
16.2
144.4
2,337.4
1,312.4
70.6
3,579.1
3,979.0
3 Foundation Coal Holdings Inc.

4 International Coal Group
FCL
ICO
14.0
2.3
45.5
153.3
635.6
352.6
599.8
455.0
42.3
63.9
1,193.1
743.6
1,968.1
1,349.7
5 Massey Energy Company
MEE
13.7
84.6
1,159.4
1,465.6
607.0
2,018.0
3,675.8
Company
(1)
Latest Statistics
EBITDA
$
EBITDA
Sales
416.6
$ 2,462.5
2.4x
0.4x
728.8
2,898.3
4.9x
1.2x
245.0
83.3
1,597.9
1,044.0
4.9x
8.9x
0.7x
0.7x
580.4
2,790.7
3.5x
0.7x
4.9x
0.7x
Median - Historical
Dec. 09
EBITDA
2 Arch Coal Inc,

EBITDA
Sales
380.3
665.4
$ 2,250.0
2,890.0
2.6x
5.4x
0.4x
1.2x
223.6
1,850.0
5.3x
0.6x
76.1
1,340.0
9.8x
0.6x
529.9
3,140.0
3.8x
0.6x
5.3x
0.6x
Average of Historical
and Forward
EBITDA
Sales
2 Arch Coal Inc,

Median - Average of Historical and Forward (4)
Notes:
(1) Based on latest available financial statements and stock market information as of December 31, 2008, Capital IQ.
(2) Enterprise value = market value of equity + total debt + preferred securities - cash.
(3) Projected values based on analysts expectations, data from Yahoo.Finance
(4) Calculated multiples using the average of historical and forward data.
Price to
Sales
Median - Forward (3)
Price to
Sales
Price to
EBITDA
Sales
398.4
$ 2,356.3
2.5x
0.4x
697.1
234.3
2,894.2
1,723.9
5.1x
5.1x
1.2x
0.7x
79.7
1,192.0
9.3x
0.6x
555.1
2,965.4
3.6x
0.7x
5.1x
0.7x
Exhibit 11
Indication of Discount for Lack of Marketability - I
Analysis of Published Benchmark Studies
Years Covered
Avenge
Studies of Private Transactions
Years Covered
Median
In Study
Discount
Prior to an Initial Public Offering
In Study
Discount
SEC Institutional Investor Study (Overall Average)
1966-1969
25.80%
Robert W. Baird & Co.
1980-1981
66.00%
SEC Institutional Investor Study (Nonreporting OTC Companies)
1966-1969
32.60%
1985-1986
43.00%
Gelman Study
1968-1970
33.00%
198 7-1989
45.00%
Trout Study
1968-1972
33.45%
1989-1990
40.00%
n/a
35.60%
1990-1992
40.00%
Maher Study
1969-1973
35.43%
1992-1993
44.00%
Standard Research Consultants
1978-1982
45.00%
1994-199 5
45.00%
Willamette Management Associates
1981-1984
31.20%
1995-1997
42.00%
Silber Study
1981-19 88
33.75%
1975-1978
52.50%
Management Planning, Inc.
1980-1996
27.10%
Willaniette Management Associates
1979
62.70%
FMV Opinions, Inc.
1980-1997
22.30%
1980-1982
56.50%
Bruce Johnson Study
1991-1995
20.00%
1983
60.70%
Columbia Financial Advisors
1996-1997
21.00%
1984
73.10%
1985
42.60%
1986
47.40%
Studies Based on Restricted Stock (From Pratt) (1)
Moroney Study
Average
30.48%
1987
43.80%
Median
32.60%
1988
51.80%
Low
20.00%
1989
50.30%
High
45.00%
1990
48.50%
1991
31.80%
1992
51.70%
1993
53.30%
1994
42.00%
1995
58.70%
Indicated Ranges of Discount for
Average
49.68%
Lack of Ready Marketability
Median
47.95%
Low
31.80%
High
73.10%
Median
33.0% to 48.0%
Low
20.0% to 32.0%
Note:
(1) Shannon P. Pratt, Robert F. Reilly & Robert P. Schweihs, Valuing Small Businesses & Professional Practices , Fourth Edition, (New York: McGraw Hill, 2000), p. 404.
Exhibit 12
Indication of Discount for Lack of Marketability - II
FMV Opinions - FMV Restricted Stock Study Database
Quintile
Data Input Area enter data in

thousands
Freely
Traded Value
(pre-DLOM
Subject Company
discount)
Energy Coal
Trans
Number
Discount
Transaction
Month
Percent Shares
Place/Total
Shares
Outstanding
Quintile 1 Bottom
Err:522
Market Value
$
2,020
Revenues
$
427,468
Revenues
$
Market
Value/Book
Value
Err:522
Assets
$
Market
Value/Book
Value
583,649
16,572
26,820
173
1,014
0.80
1.86
2,727
5,652
Quintile 2 Median
40,438
2,796
3.18
8,865
Quintile 2 Top
57,517
4,751
4.73
Quintile 3 Median
Quintile 3 Top
82,747
106,082
9,377
14,421
Quintile 4 Median
140,643
Quintile 4 Top
206,986
Quintile 5 Top
Market
Value/Book
Value
Assets
Err:522
Err:522
Database Transactions
Subject Company
Quintile
Quintile
Revenues
Market
Value/Book
Value
Assets
Market
Value
Revenues
Market
Value/Book
Value
Discount Determination
Assets
Match Status
Applicable
Discount
Quintile 1 Median
Quintile 1 Top
Quintile 5 Median
Revenues
Market
Value
Assets
$ (16,858.41) $
Market
Value
Count
Quintile 1 Bottom
Quintile 1 Median
Err:522
Err:522
12,517
Quintile 1 Top
Err:522
6.37
8.65
18,123
27,564
Quintile 2 Median
Quintile 2 Top
Err:522
Err:522
26,269
11.72
43,222
Quintile 3 Median
49,014
19.05
71,233
Quintile 3 Top
Err:522
Quintile 4 Median
Err:522
Quintile 4 Top
Err:522
Quintile 5 Median
Err:522
Quintile 5 Top
Err:522
404,505
124,377
37.86
213,640
5,726,135
1,791,446
800.14
12,471,370
Guide for using this spreadsheet:

The only input required is in the blue-shaded box below
This spreadsheet serves to analyze the subject company with the specific transactions located in the FMV
Restricted Stock Database ("database"). This analysis focuses on four of the key financial indicators for the
transactions in the database. The transactions shown here represent stock placements less than 20% of
the total stock outstanding. The only input that is required in this analysis is in the blue-shaded book
below. The rest of the analysis is driven by formulas. The conclusion to this analysis is the median
"Restricted Stock Equivalent Discount" applicable for the subject company. The discount is calculated in
the far right shadow-box shaded blue.
Err:522
Exhibit 13
Indication of Discount for Lack of Marketability: Summary
Method
Analysis of Published Benchmark Studies
Indicated Range based Median Discounts [Exhibit 11] (1)
Indicated Range based on Low Discounts
Indicated Discount
33% to 48%
20.0% to 32%
Quantitative Discount for Lack of Ready Marketability Study

FMV Opinions - FMV Restricted Stock Study Database [Exhibit 12] (2)
Err:522
Incremental Private Equity Discount
17.10%
Qualitative Discount Adjustment

Discount for Lack of Marketability
1.50%
Err:522
Notes:
(1) Shannon P. Pratt, Robert F. Reilly & Robert P. Schweihs, Valuing Small Businesses & Professional Practices , Third Edition, (New York: McGraw Hill, 1998), p. 457.
(2) Business Valuation Resources, "The FMV Restricted Study Advanced Search Results," Business Valuation Resources Web site <http://www.bvmarketdata.com>, accessed March 2007.

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Exhibit 1

Energy Coal Resources, Inc.

Fair Value of Equity - Marketable Minority Interest Level

Total property, plant, and equipment, net

Debt issuance costs / Financial costs, net

Six months ended

Loss on asset impairment

Sales contract (accretion)

Selling, general, and administrative

Total costs and expenses

Other (expense) income

Total other expense

(Loss) earnings from continuing operations

Gain on sale of discontinued operations, net of taxes

LTM 12 months Sep-30-2008

Net Income Margin %

Accounts Receivable Turnover

Total Liabilities/Total Assets

Short Term Liquidity

EBIT / Interest Exp.

Net Income Margin %

Accounts Receivable Turnover

Avg. Days Inventory Out.

Total Liabilities/Total Assets

Short Term Liquidity

Long Term Solvency

EBIT / Interest Exp.

Avg. Days Inventory Out.

Total Liabilities/Total Assets

Long Term Solvency

EBIT / Interest Exp.

Net Income Margin %

Accounts Receivable Turnover

Short Term Liquidity

Avg. Days Inventory Out.

Long Term Solvency

Total Liabilities/Total Assets

EBIT / Interest Exp.

Working Capital, Debt Free

Smoothed Premium = 8.766% - 1.870% * Log(Book Value)

Smoothed Premium = 8.970% - 1.648% * Log(Total Assets)

Std Err of Coef.

Std Err of Coef.

Smoothed Premium = 8.438% - 1.446% * Log(Sales)

Smoothed Premium = 10.438% - 1.776% * Log(Employee)

Std Err of Y Est:

Book Value of Equity

"1" Include and "0" Not Include

Equity risk premium - stocks over bonds

Industry median beta

Premium for specific company risk

Cost of Capital Yearbook September 2008 Data (Medians)

Cost of equity discount rate

Cost of Capital 2008 Yearbook, page 1-3, industry SIC 12

Cost of Capital 2008 Yearbook, page 1-4, industry Sic 122

Less Depreciation (1)

Net Operating Loss Carryforward (2)

Net Operating Profit After-Tax

Debt-free, Net Cash Flow

Indicated value of invested capital - control

Residual Cash Flow

Divided by: Cap Rate

Selected rate of working capital debt-free as % Sales

Indicated value of invested capital - minority, before adding cash