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| x | ANNUAL REPORT PURSUANT TO SECTION      13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF  1934 |
|---|--------------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--------|----------------------------------------------------------------------------------------------------|

| Delaware                                                                |   | 20-2641185                                    |
|-------------------------------------------------------------------------|--------|-----------------------------------------------|
| (State or Other Jurisdiction      ofIncorporation or      Organization) |   | (I.R.S.      EmployerIdentification      No.) |

| Securities registered pursuant to      Section 12(b) of the Act: |   | Name on each exchange on which      registered: |
|------------------------------------------------------------------|--------|-------------------------------------------------|
| Common Stock, par value $0.01 per      share                     |   | The New York Stock    Exchange                  |

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| Item 1.   |    | BUSINESS                                                                                                                          |    | 1  |
|----------------|--------------|-----------------------------------------------------------------------------------------------------------------------------------|--------------|----|
| Item 1A.  |    | RISK      FACTORS                                                                                                                 |    | 29 |
| Item 1B.  |    | UNRESOLVED STAFF      COMMENTS                                                                                                    |    | 48 |
| Item 2.   |    | PROPERTIES                                                                                                                        |    | 49 |
| Item 3.   |    | LEGAL      PROCEEDINGS                                                                                                            |    | 55 |
| Item 4.   |    | SUBMISSION OF      MATTERS TO A VOTE OF SECURITY HOLDERS                                                                          |    | 56 |
| Item 5.   |    | MARKET FOR      REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER      PURCHASES OF EQUITY      SECURITIES |    | 57 |
| Item 6.   |    | SELECTED      FINANCIAL DATA                                                                                                      |    | 58 |
| Item 7.   |    | MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS                             |    | 61 |
| Item 7A.  |    | QUANTITATIVE AND      QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                                   |    | 84 |
| Item 8.   |    | FINANCIAL      STATEMENTS AND SUPPLEMENTARY DATA                                                                                  |    | 84 |
| Item 9.   |    | CHANGES IN AND      DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL      DISCLOSURE                                    |    | 85 |
| Item 9A.  |    | CONTROLS AND      PROCEDURES                                                                                                      |    | 85 |
| Item 9B.  |    | OTHER      INFORMATION                                                                                                            |    | 85 |
| Item 10.* |    | DIRECTORS,      EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE                                                                       |    | 86 |
| Item 11.* |    | EXECUTIVE      COMPENSATION                                                                                                       |    | 86 |
| Item 12.* |    | SECURITY      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED      STOCKHOLDER      MATTERS                     |    | 86 |
| Item 13.* |    | CERTAIN      RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR      INDEPENDENCE                                               |    | 86 |
| Item 14.* |    | PRINCIPAL      ACCOUNTANT FEES AND SERVICE                                                                                        |    | 86 |
| Item 15.  |    | EXHIBITS,      FINANCIAL STATEMENT SCHEDULES                                                                                      |    | 87 |

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| * | The information required by Items      10, 11, 12, 13 and 14, to the extent not included in this document, is      incorporated herein by reference to the information included under the      captions “Election of Directors,” “Security Ownership of Certain      Beneficial Owners and Management and Related Stockholder Matters,”      “Certain Relationships and Related Party Transactions,” “Audit Matters,”      and “ Executive Officers” in the registrant’s definitive proxy statement      which is expected to be filed on or about April 15,      2009. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| • | market demand for coal,      electricity and steel;                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                   |
| • | availability of qualified      workers;                                                                                                                                                                                                                |
|    |                                                                                                                                                                                                                                                   |
| • | future economic or capital market      conditions;                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                   |
| • | weather conditions or catastrophic      weather-related damage;                                                                                                                                                                                        |
|    |                                                                                                                                                                                                                                                   |
| • | our production      capabilities;                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                   |
| • | consummation of financing,      acquisition or disposition transactions and the effect thereof on our      business;                                                                                                                                   |
|    |                                                                                                                                                                                                                                                   |
| • | a significant number of      conversions of our Convertible Senior Notes prior to      maturity;                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                   |
| • | our plans and objectives for      future operations and expansion orconsolidation;                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                   |
| • | our relationships with, and other      conditions affecting, our customers;                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                   |
| • | availability and costs of key      supplies or commodities such as diesel fuel, steel, explosives and      tires;                                                                                                                                      |
|    |                                                                                                                                                                                                                                                   |
| • | availability and costs of capital      equipment;                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                   |
| • | prices of fuels which compete with      or impact coal usage, such as oil and natural  gas;                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                   |
| • | timing of reductions or increases      in customer coal inventories;                                                                                                                                                                                   |
|    |                                                                                                                                                                                                                                                   |
| • | long-term coal supply      arrangements;                                                                                                                                                                                                               |
|    |                                                                                                                                                                                                                                                   |
| • | risks in or related to coal mining      operations, including risks relating to third-party suppliers and carriers      operating at our mines or complexes;                                                                                           |
|    |                                                                                                                                                                                                                                                   |
| • | unexpected maintenance and      equipment failure;                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                   |
| • | environmental, safety and other      laws and regulations, including those directly affecting our coal mining      and production, and those affecting our customers’ coal      usage;                                                           |
|    |                                                                                                                                                                                                                                                   |
| • | ability to obtain and maintain all      necessary governmental permits and  authorizations;                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                   |
| • | competition among coal and other      energy producers in the United States and      internationally;                                                                                                                                                  |
|    |                                                                                                                                                                                                                                                   |
| • | railroad, barge, trucking and      other transportation availability, performance and      costs;                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                   |
| • | employee benefits costs and labor      relations issues;                                                                                                                                                                                               |
|    |                                                                                                                                                                                                                                                   |
| • | replacement of our      reserves;                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                   |
| • | our assumptions concerning      economically recoverable coal reserve estimates;                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                   |
| • | availability and costs of credit,      surety bonds and letters of credit;                                                                                                                                                                             |
|    |                                                                                                                                                                                                                                                   |
| • | title defects or loss of leasehold      interests in our properties which could result in unanticipated costs or      inability to mine these properties;                                                                                              |
|    |                                                                                                                                                                                                                                                   |
| • | future legislation and changes in      regulations or governmental policies or changes in interpretations or      enforcement thereof, including with respect to safety enhancements and      environmental initiatives relating to global    warming; |
|    |                                                                                                                                                                                                                                                   |
| • | impairment of the value of our      long-lived and      deferred tax assets;                                                                                                                                                                           |
|    |                                                                                                                                                                                                                                                   |
| • | our liquidity, including the ability to adhere      to financial covenants related to our borrowing arrangements, results of operations and      financial condition;                                                                                  |
|    |                                                                                                                                                                                                                                                   |
| • | adequacy and sufficiency of our      internal controls; and                                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                   |
| • | legal and administrative      proceedings, settlements, investigations and claims and the availability      of related insurancecoverage.                                                                                                              |

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| ITEM 1. | BUSINESS |
|--------------|----------|

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|                                     |    |                         |    |                    |   |         | Number and Type of      Mines |    |                |    |   |         |                        |         |
|------------------------------------------|--------------|------------------------------|--------------|-------------------------|--------|--------------|------------------------------------|--------------|---------------------|--------------|--------|--------------|-----------------------------|--------------|
| Mining Complexes(1)                 |    | Location                     |    | Preparation Plants |   |         | Under- ground                 |    | Surface             |    | Total  |    | Mining Method      (2) |    | Transportation |   | Tons Produced      in 2008 |   |
|                                     |    |                         |    |                    |   |         |                               |    |                |    |   |    |                        |    |   |   | (in thousands) |   |
| Eastern                                  |    | Cowen, WV                    |    | 1                       |   |    | —                  |    | 1                   |    | 1      |    | MTR, DL, TSL      |    | Rail |   | 3,234.5 |   |
| Hazard                                   |    | Hazard, KY                   |    | —       |   |    | —                  |    | 7                   |    | 7      |    | HW, MTR, TSL           |    | Rail, Truck |   | 4,055.9 |   |
| Flint Ridge                              |    | Hazard, KY                   |    | 1                       |   |         | 3                                  |    | —   |    | 3      |    | R&P                     |    | Rail, Truck |   | 1,056.0 |   |
| Knott County                        |    | Kite, KY                     |    | 1                       |   |         | 3                                  |    | —   |    | 3      |    | R&P                     |    | Rail |   | 948.4 |   |
| Raven                                    |    | Raven, KY                    |    | 1                       |   |         | 2                                  |    | —   |    | 2      |    | R&P                     |    | Rail |   | 664.3 |   |
| East    Kentucky                         |    | Pike Co.,KY                  |    | —       |   |    | —                  |    | 2                   |    | 2      |    | MTR, TSL                    |    | Rail |   | 1,058.1 |   |
| Beckley                                  |    | Eccles, WV                   |    | 1                       |   |         | 1                                  |    | —   |    | 1      |    | R&P                     |    | Rail |   | 531.8 |   |
| Vindex Energy      Corporation           |    | Garrett Co.,    MD           |    | 1                       |   |    | —                  |    | 3                   |    | 3      |    | CRM, TSL               |    | Truck, Rail |   | 939.1 |   |
| Patriot Mining      Company              |    | Monongalia Co., WV |    | —       |   |    | —                  |    | 1                   |    | 1      |    | CTR, TSL                    |    | Barge, Rail, Truck |   | 929.6 |   |
| Wolf Run Mining Buckhannon      Division |    | Upshur Co., WV     |    | 1                       |   |         | 2                                  |    | —   |    | 2      |    | R&P                     |    | Rail, Truck |   | 993.8 |   |
| Sentinel                                 |    | Barbour Co.,    WV           |    | 1                       | (3)    |         | 1                                  |    | —   |    | 1      |    | R&P                     |    | Rail |   | 1,007.4 |   |
| Powell Mountain                     |         | St. Charles,    VA           |         | 1                       |   |         | 1                                  |    | —   |         | 1      |         | R&P                     |         | Rail |   | 100.3 |   |
| Illinois                                 |    | Williamsville, IL            |    | 1                       |   |         | 1                                  |    | —   |    | 1      |    | R&P                     |    | Truck |   | 2,261.0 |   |

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| (1) | Does not include Juliana, an      inactive mining complex.                                                                                                                         |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | CRM = Cross Ridge Mining; CTR =      Contour Mining; R&P = Room-and-pillar; MTR = Mountain Top Removal; DL      = Dragline; HW = Highwall; TSL = Truck and      Shovel/Loader. |
| (3) | A portion of the complex currently      utilizes one circuit.                                                                                                                      |

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|                                     |         | 2008                |      | 2007                             |                | 2006               |                |
|------------------------------------------|--------------|---------------------|-----------|----------------------------------|---------------------|--------------------|---------------------|
| Mining      Complexes(1)                 |    | Tons Produced  |      | Sales Realizations      (2) |           | Tons Produced |                | Sales Realizations      (2) |    | Tons Produced |    | Sales Realizations      (2) |   |
| Eastern                                  |    | 3,234,517           |      | $                                | 55.36               |          | 3,268,000           |   | $ | 42.15 |    | 3,048,800 |   | $ | 43.92 |   |
| Hazard                                   |    | 4,055,874           |      | $                                | 54.56               |          | 3,868,959           |   | $ | 45.04 |    | 3,709,924 |   | $ | 50.05 |   |
| Flint Ridge                              |    | 1,055,996           |      | $                                | 55.05               |          | 1,306,428           |   | $ | 45.49 |    | 1,718,300 |   | $ | 50.81 |   |
| Knott County                        |    | 948,445             |      | $                                | 52.57               |          | 1,039,714           |   | $ | 46.41 |    | 1,268,617 |   | $ | 51.51 |   |
| Raven                                    |    | 664,265             |      | $                                | 54.45               |          | 608,068             |   | $ | 48.30 |    | 246,570 |   | $ | 48.52 |   |
| East    Kentucky                         |    | 1,058,092           |      | $                                | 58.39               |          | 1,001,911           |   | $ | 51.42 |    | 1,255,522 |   | $ | 53.28 |   |
| Beckley(3)                               |    | 531,842             |      | $                                | 106.66              |          | 39,748              |   | $ | 72.82 |    | —   |   | $ | —   |   |
| Vindex Energy      Corporation           |    | 939,141             |      | $                                | 54.43               |          | 853,695             |   | $ | 36.83 |    | 1,062,925 |   | $ | 36.62 |   |
| Patriot Mining      Company              |    | 929,645             |      | $                                | 40.56               |               | 885,108             |   | $ | 25.12 |   | 888,265 |   | $ | 23.52 |   |
| Wolf Run Mining Buckhannon      Division |    | 993,807             |      | $                                | 56.48               |               | 636,002             |   | $ | 41.94 |    | 820,688 |   | $ | 42.46 |   |
| Sentinel                                 |    | 1,007,425           |      | $                                | 60.73               |               | 681,814             |   | $ | 47.22 |    | 58,403 |   | $ | 41.25 |   |
| Sycamore    Group                        |    | —   | (4)  | $                                | —   |          | 82,904              | (4) | $ | 30.14 |    | 347,241 |   | $ | 29.13 |   |
| Powell Mountain(5)                  |         | 100,322             |      | $                                | 132.17              |               | —   |    | $ | —   |   | —   |   | $ | —   |   |
| Illinois                                 |    | 2,261,028           |      | $                                | 29.94               |          | 2,085,495           |   | $ | 29.84 |    | 2,084,193 |   | $ | 24.68 |   |
|                                     |    | 17,780,399          |      |                             |                |          | 16,357,846          |   |   |   |    | 16,509,448 |   |    |   |   |

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| (1) | Does not include Juliana, an      inactive mining complex.                 |
|-----|----------------------------------------------------------------------------|
| (2) | Excludes freight and handling      revenue.                                |
| (3) | Beckley was in development until the fall      of 2008.                    |
| (4) | The      Sycamore No. 1      mine was depleted      and reclaimed in 2007. |
| (5) | Powell      Mountain was acquired in      2008.                            |

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| ITEM 1A. | RISK  FACTORS |
|---------------|---------------|

| • |   | supply of and demand for domestic      and foreign coal;                                                                             |
|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                 |
| • |   | demand for      electricity;                                                                                                         |
|    |   |                                                                                                                                 |
| • |   | domestic and foreign demand for      steel and the continued financial viability of the domestic and/or foreign      steel industry; |
|    |   |                                                                                                                                 |
| • |   | proximity to, capacity of and cost      of transportation facilities;                                                                |
|    |   |                                                                                                                                 |
| • |   | domestic and foreign governmental      regulations and taxes;                                                                        |
|    |   |                                                                                                                                 |
| • |   | air emission standards for      coal-fired power plants;                                                                             |
|    |   |                                                                                                                                 |
| • |   | regulatory, administrative and      judicial decisions;                                                                              |
|    |   |                                                                                                                                 |
| • |   | price and availability of      alternative fuels, including the effects of technological developments;      and                      |
|    |   |                                                                                                                                 |
| • |   | effect of worldwide energy      conservation measures.                                                                               |

| • |   | unavailability of qualified      labor;                                                                                                                                                                                                 |
|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                                                                                    |
| • |   | our inability to acquire, maintain      or renew necessary permits or mining or surface rights in a timely manner,      if at all;                                                                                                      |
|    |   |                                                                                                                                                                                                                                    |
| • |   | unfavorable geologic conditions,      such as the thickness of the coal deposits and the amount of rock embedded      in or overlying the coal deposits;                                                                                |
|    |   |                                                                                                                                                                                                                                    |
| • |   | failure of reserve estimates to      prove correct;                                                                                                                                                                                     |
|    |   |                                                                                                                                                                                                                                    |
| • |   | changes in governmental regulation      of the coal industry, including the imposition of additional taxes, fees      or actions to suspend or revoke our permits or changes in the manner of      enforcement of existing regulations; |
|    |   |                                                                                                                                                                                                                                    |
| • |   | mining and processing equipment      failures and unexpected maintenance problems;                                                                                                                                                      |
|    |   |                                                                                                                                                                                                                                    |
| • |   | adverse weather and natural      disasters, such as heavy rains and flooding;                                                                                                                                                           |
|    |   |                                                                                                                                                                                                                                    |
| • |   | increased water entering mining      areas and increased or accidental mine water      discharges;                                                                                                                                      |
|    |   |                                                                                                                                                                                                                                    |
| • |   | increased or unexpected      reclamation costs;                                                                                                                                                                                         |
|    |   |                                                                                                                                                                                                                                    |
| • |   | interruptions due to      transportation delays;                                                                                                                                                                                        |
|    |   |                                                                                                                                                                                                                                    |
| • |   | unavailability of required      equipment of the type and size needed to meet production expectations;      and                                                                                                                         |
|    |   |                                                                                                                                                                                                                                    |
| • |   | unexpected mine safety accidents,      including fires andexplosions.                                                                                                                                                                   |

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| • |   | geological and mining conditions      which may not be fully identified by available exploration data or which      may differ from experience in currentoperations;                                                                           |
|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                                                                                           |
| • |   | historical production from the      area compared with production from other similar producing areas;      and                                                                                                                                 |
|    |   |                                                                                                                                                                                                                                           |
| • |   | assumed effects of regulation and      taxes by governmental agencies and assumptions concerning coal prices,      operating costs, mining technology improvements, severance and excise      taxes, development costs and reclamation  costs. |

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| • |   | uncertainties in assessing the      value, strengths and potential profitability of, and identifying the      extent of all weaknesses, risks, contingent and other liabilities      (including environmental or mine safety liabilities) of, acquisition      candidates; |
|---------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                                                                                                                       |
| • |   | potential loss of key customers,      management and employees of an acquiredbusiness;                                                                                                                                                                                     |
|    |   |                                                                                                                                                                                                                                                                       |
| • |   | ability to achieve identified      operating and financial synergies anticipated to result from an      acquisition;                                                                                                                                                       |
|    |   |                                                                                                                                                                                                                                                                       |
| • |   | discrepancies between the      estimated and actual reserves of the acquired    business;                                                                                                                                                                                  |
|    |   |                                                                                                                                                                                                                                                                       |
| • |   | problems that could arise from the      integration of the acquired business; and                                                                                                                                                                                          |
|    |   |                                                                                                                                                                                                                                                                       |
| • |   | unanticipated changes in business,      industry or general economic conditions that affect the assumptions      underlying our rationale for pursuing the    acquisition.                                                                                                 |

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| • |   | lack of availability, higher      expense or unfavorable market terms of newbonds;                                                                                                |
|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                              |
| • |   | restrictions on availability of      collateral for current and future third-party surety bond issuers under      the terms of our amended and restated credit facility;      and |
|    |   |                                                                                                                                                                              |
| • |   | exercise by third-party surety      bond issuers of their right to refuse to renew the      surety.                                                                               |

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| • |   | limitations on land      use;                                                                                                                                                                  |
|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                                           |
| • |   | employee health and      safety;                                                                                                                                                               |
|    |   |                                                                                                                                                                                           |
| • |   | mandated benefits for retired coal      miners;                                                                                                                                                |
|    |   |                                                                                                                                                                                           |
| • |   | mine permitting and licensing      requirements;                                                                                                                                               |
|    |   |                                                                                                                                                                                           |
| • |   | reclamation and restoration of      mining properties after mining is completed;                                                                                                               |
|    |   |                                                                                                                                                                                           |
| • |   | air quality      standards;                                                                                                                                                                    |
|    |   |                                                                                                                                                                                           |
| • |   | water      pollution;                                                                                                                                                                          |
|    |   |                                                                                                                                                                                           |
| • |   | construction and permitting of      facilities required for mining operations, including valley fills and      other structures, including those constructed in waterbodies and      wetlands; |
|    |   |                                                                                                                                                                                           |
| • |   | protection of human health,      plantlife and wildlife;                                                                                                                                       |
|    |   |                                                                                                                                                                                           |
| • |   | discharge of materials into the      environment;                                                                                                                                              |
|    |   |                                                                                                                                                                                           |
| • |   | surface subsidence from      underground mining; and                                                                                                                                           |
|    |   |                                                                                                                                                                                           |
| • |   | effects of mining on groundwater      quality and availability.                                                                                                                                |

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| • |   | making it more difficult for us to      meet our payment and other obligations under our outstanding senior and      convertible notes and our other outstandingdebt;                                                                   |
|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                                                                                    |
| • |   | resulting in an event of default      if we fail to comply with the financial and other restrictive covenants      contained in our debt agreements, which could result in all of our debt      becoming immediately due and payable;   |
|    |   |                                                                                                                                                                                                                                    |
| • |   | subjecting us to the risk of      increased sensitivity to interest rate increases on our indebtedness with      variable interest rates, including borrowings under our senior credit      facility;                                   |
|    |   |                                                                                                                                                                                                                                    |
| • |   | reducing the availability of our      cash flow to fund working capital, capital expenditures, acquisitions and      other general corporate purposes, and limiting our ability to obtain      additional financing for these purposes; |
|    |   |                                                                                                                                                                                                                                    |
| • |   | limiting our flexibility in      planning for, or reacting to, and increasing our vulnerability to, changes      in our business, the industry in which we operate and the general economy;      and                                    |
|    |   |                                                                                                                                                                                                                                    |
| • |   | placing us at a competitive      disadvantage compared to our competitors that have less debt or are less      leveraged.                                                                                                               |

| • |   | incur additional debt or issue      guarantees;                                                                   |
|---------|--------|-------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                              |
| • |   | pay dividends on, redeem or      repurchase capital stock;                                                        |
|    |   |                                                                                                              |
| • |   | allow our subsidiaries to issue      new stock to any person other than us or any of our other      subsidiaries; |
|    |   |                                                                                                              |
| • |   | make certain      investments;                                                                                    |
|    |   |                                                                                                              |
| • |   | make      acquisitions;                                                                                           |
|    |   |                                                                                                              |
| • |   | incur, or permit to exist,      liens;                                                                            |
|    |   |                                                                                                              |
| • |   | enter into transactions with      affiliates;                                                                     |
|    |   |                                                                                                              |
| • |   | guarantee the debt of other      entities, including joint ventures;                                              |
|    |   |                                                                                                              |
| • |   | merge or consolidate or otherwise      combine with another company; and                                          |
|    |   |                                                                                                              |
| • |   | transfer or sell a material amount      of our assets outside the ordinary course of    business.                 |

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| ITEM 1B. | UNRESOLVED STAFF      COMMENTS |
|---------------|--------------------------------|

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| ITEM 2. | PROPERTIES |
|--------------|------------|

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| Mining      Operations                                                                |   | Assigned or Unassigned      (1)           |   | Operating (O) or Development      (D) |   | State  |   | Mining Method Surface      (S) or Underground (UG) |   | Total Proven and Probable Reserves      (2) |   | Owned Proven and Probable Reserves |   | Leased Proven and Probable Reserves |   | Steam Proven and Probable Reserves |   | Metallurgical(3)(4) Proven      and Probable Reserves |
|---------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|------------------------------------------------------|--------|--------|--------|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|--------------------------------------------------------|--------|---------------------------------------------------------|--------|--------------------------------------------------------|--------|----------------------------------------------------------------------|
|                                                                                  |   |                                           |   |                                                 |   |   |   |                                                                        |   | (in      million tons)                                          |
| Northern      Appalachia                                                              |   |                                           |   |                                                 |   |   |   |                                                                        |   |                                                            |   |                                                   |   |                                                    |   |                                                   |   |                                                                 |
| Vindex Energy      Corp.                                                              |   | Assigned                                       |   | O                                                    |   | MD     |   | S                                                                           |   | 7.27                                                            |   | 0.00                                                   |   | 7.27                                                    |   | 7.27                                                   |   | 0.00                                                                 |
|                                                                                  |   | Unassigned                                     |   | D                                                    |   | MD     |   | S/UG                                                                        |   | 52.83                                                           |   | 0.35                                                   |   | 52.48                                                   |   | 32.58                                                  |   | 20.25                                                                |
| Total Vindex Energy      Corp.                                                        |   |                                           |   |                                                 |   |   |   |                                                                        |   | 60.10                                                           |   | 0.35                                                   |   | 59.75                                                   |   | 39.85                                                  |   | 20.25                                                                |
| Patriot Mining      Co.                                                               |   | Assigned                                       |   | O                                                    |   | WV     |   | S                                                                           |   | 6.18                                                            |   | 0.05                                                   |   | 6.13                                                    |   | 6.18                                                   |   | 0.00                                                                 |
|                                                                                  |   | Unassigned                                     |   | D                                                    |   | WV     |   | S                                                                           |   | 0.00                                                            |   | 0.00                                                   |   | 0.00                                                    |   | 0.00                                                   |   | 0.00                                                                 |
| Total Patriot Mining      Co.                                                         |   |                                           |   |                                                 |   |   |   |                                                                        |   | 6.18                                                            |   | 0.05                                                   |   | 6.13                                                    |   | 6.18                                                   |   | 0.00                                                                 |
| Wolf Run Mining Buckhannon      Division                                              |   | Assigned                                       |   | O                                                    |   | WV     |   | UG                                                                          |   | 28.50                                                           |   | 13.16                                                  |   | 15.34                                                   |   | 14.86                                                  |   | 13.64                                                                |
|                                                                                  |   | Unassigned                                     |   | D                                                    |   | WV     |   | UG                                                                          |   | 30.55                                                           |   | 28.81                                                  |   | 1.74                                                    |   | 0.00                                                   |   | 30.55                                                                |
| Total Wolf Run Mining Buckhannon      Division                                        |   |                                           |   |                                                 |   |   |   |                                                                        |   | 59.05                                                           |   | 41.97                                                  |   | 17.08                                                   |   | 14.86                                                  |   | 44.19                                                                |
| Sentinel                                                                              |   | Assigned                                       |   | O                                                    |   | WV     |   | UG                                                                          |   | 47.33                                                           |   | 30.41                                                  |   | 16.92                                                   |   | 0.00                                                   |   | 47.33                                                                |
|                                                                                  |   | Unassigned                                     |   | D                                                    |   | WV     |   | UG                                                                          |   | 4.94                                                            |   | 4.94                                                   |   | 0.00                                                    |   | 0.00                                                   |   | 4.94                                                                 |
| Total    Sentinel                                                                     |   |                                           |   |                                                 |   |   |   |                                                                        |   | 52.27                                                           |   | 35.35                                                  |   | 16.92                                                   |   | 0.00                                                   |   | 52.27                                                                |
| CoalQuest Development      LLC                                                        |   | Unassigned                                     |   | D                                                    |   | WV     |   | UG                                                                          |   | 186.09                                                          |   | 186.09                                                 |   | 0.00                                                    |   | 32.71                                                  |   | 153.38                                                               |
|                                                                                  |   | (Hillman)                                      |   |                                                 |   |   |   |                                                                        |   |                                                            |   |                                                   |   |                                                    |   |                                                   |   |                                                                 |
| Northern Appalachia Total                                                             |   |                                           |   |                                                 |   |   |   |                                                                        |   | 363.69                                                          |   | 263.81                                                 |   | 99.88                                                   |   | 93.60                                                  |   | 270.09                                                               |
| Central      Appalachia                                                               |   |                                           |   |                                                 |   |   |   |                                                                        |   |                                                            |   |                                                   |   |                                                    |   |                                                   |   |                                                                 |
| Eastern                                                                               |   | Assigned                                       |   | O                                                    |   | WV     |   | S                                                                           |   | 4.95                                                            |   | 3.15                                                   |   | 1.80                                                    |   | 4.95                                                   |   | 0.00                                                                 |
|                                                                                  |   | Unassigned                                     |   | D                                                    |   | WV     |   | S                                                                           |   | 6.70                                                            |   | 0.00                                                   |   | 6.70                                                    |   | 6.70                                                   |   | 0.00                                                                 |
| Total    Eastern                                                                      |   |                                           |   |                                                 |   |   |   |                                                                        |   | 11.65                                                           |   | 3.15                                                   |   | 8.50                                                    |   | 11.65                                                  |   | 0.00                                                                 |
| Hazard                                                                                |   | Assigned                                       |   | O                                                    |   | KY     |   | S                                                                           |   | 61.94                                                           |   | 26.12                                                  |   | 35.82                                                   |   | 61.94                                                  |   | 0.00                                                                 |
|                                                                                  |   | Unassigned                                     |   | D                                                    |   | KY     |   | S                                                                           |   | 0.00                                                            |   | 0.00                                                   |   | 0.00                                                    |   | 0.00                                                   |   | 0.00                                                                 |
| TotalHazard                                                                           |   |                                           |   |                                                 |   |   |   |                                                                        |   | 61.94                                                           |   | 26.12                                                  |   | 35.82                                                   |   | 61.94                                                  |   | 0.00                                                                 |
| Flint Ridge                                                                           |   | Assigned                                       |   | O                                                    |   | KY     |   | UG                                                                          |   | 24.18                                                           |   | 0.63                                                   |   | 23.55                                                   |   | 24.18                                                  |   | 0.00                                                                 |
| Knott County                                                                     |   | Assigned                                       |   | O                                                    |   | KY     |   | UG                                                                          |   | 3.42                                                            |   | 2.93                                                   |   | 0.49                                                    |   | 3.42                                                   |   | 0.00                                                                 |
|                                                                                  |   |         Unassigned                   |   | D                                                    |   | KY     |   | UG                                                                          |   | 11.78                                                           |   | 0.93                                                   |   | 10.85                                                   |   | 11.78                                                  |   | 0.00                                                                 |
| Total Knott County                                                          |   |                                           |   |                                                 |   |   |   |                                                                        |   | 15.20                                                           |   | 3.86                                                   |   | 11.34                                                   |   | 15.20                                                  |   | 0.00                                                                 |
| Raven                                                                                 |   | Assigned                                       |   | O                                                    |   | KY     |   | UG                                                                          |   | 10.03                                                           |   | 0.00                                                   |   | 10.03                                                   |   | 10.03                                                  |   | 0.00                                                                 |
|                                                                                  |   | Unassigned                                     |   | D                                                    |   | KY     |   | UG                                                                          |   | 2.20                                                            |   | 0.00                                                   |   | 2.20                                                    |   | 2.20                                                   |   | 0.00                                                                 |
| Total Raven                                                                           |   |                                           |   |                                                 |   |   |   |                                                                        |   | 12.23                                                           |   | 0.00                                                   |   | 12.23                                                   |   | 12.23                                                  |   | 0.00                                                                 |
| East    Kentucky                                                                      |   | Assigned                                       |   | O                                                    |   | KY     |   | S                                                                           |   | 2.94                                                            |   | 2.39                                                   |   | 0.55                                                    |   | 2.94                                                   |   | 0.00                                                                 |
| ICG Natural      Resources                                                            |   | Assigned                                       |   | D                                                    |   | WV     |   | S                                                                           |   | 14.70                                                           |   | 0.00                                                   |   | 14.70                                                   |   | 14.70                                                  |   | 0.00                                                                 |
|                                                                                  |   | Unassigned                                     |   | D                                                    |   | WV     |   | UG                                                                          |   | 30.20                                                           |   | 2.21                                                   |   | 27.99                                                   |   | 30.20                                                  |   | 0.00                                                                 |
|                                                                                  |   |     (Jennie Creek)         |   |                                                 |   |   |   |                                                                        |   |                                                            |   |                                                   |   |                                                    |   |                                                   |   |                                                                 |
| Total ICG Natural      Resources                                                 |   |                                           |   |                                                 |   |   |   |                                                                        |   | 44.90                                                           |   | 2.21                                                   |   | 42.69                                                   |   | 44.90                                                  |   | 0.00                                                                 |
| Powell Mountain                                                                  |   | Assigned                                       |   | O                                                    |   | VA     |   | UG                                                                          |   | 5.05                                                            |   | 0.00                                                   |   | 5.05                                                    |   | 5.05                                                   |   | 0.00                                                                 |
|                                                                                  |   | Unassigned                                     |   | D                                                    |   | VA     |   | S/UG                                                                        |   | 22.02                                                           |   | 0.00                                                   |   | 22.02                                                   |   | 22.02                                                  |   | 0.00                                                                 |
|          Total Powell Mountain |   |                                           |   |                                                 |   |   |   |                                                                        |   | 27.07                                                           |   | 0.00                                                   |   | 27.07                                                   |   | 27.07                                                  |   | 0.00                                                                 |
| Beckley                                                                               |   | Assigned                                       |   | O                                                    |   | WV     |   | UG                                                                          |   | 32.03                                                           |   | 1.28                                                   |   | 30.75                                                   |   | 0.00                                                   |   | 32.03                                                                |
| White Wolf Energy,      Inc.                                                          |   | Unassigned                                     |   | D                                                    |   | VA     |   | UG                                                                          |   | 25.91                                                           |   | 0.00                                                   |   | 25.91                                                   |   | 0.00                                                   |   | 25.91                                                                |
|                                                                                  |   |           (Big Creek) |   |                                                 |   |   |   |                                                                        |   |                                                            |   |                                                   |   |                                                    |   |                                                   |   |                                                                 |
| Central Appalachia Total                                                              |   |                                           |   |                                                 |   |   |   |                                                                        |   | 258.05                                                          |   | 39.64                                                  |   | 218.41                                                  |   | 200.11                                                 |   | 57.94                                                                |
| Other                                                                                 |   |                                           |   |                                                 |   |   |   |                                                                        |   |                                                            |   |                                                   |   |                                                    |   |                                                   |   |                                                                 |
| Illinois                                                                              |   | Assigned                                       |   | O                                                    |   | IL     |   | UG                                                                          |   | 42.58                                                           |   | 8.93                                                   |   | 33.65                                                   |   | 42.58                                                  |   | 0.00                                                                 |
|                                                                                  |   |          (Viper)                |   |                                                 |   |   |   |                                                                        |   |                                                            |   |                                                   |   |                                                    |   |                                                   |   |                                                                 |
| ICG Natural      Resources                                                            |   | Unassigned                                     |   | D                                                    |   | IL     |   | UG                                                                          |   | 352.88                                                          |   | 352.88                                                 |   | 0.00                                                    |   | 352.88                                                 |   | 0.00                                                                 |
| Total Other                                                                           |   |                                           |   |                                                 |   |   |   |                                                                        |   | 395.46                                                          |   | 361.81                                                 |   | 33.65                                                   |   | 395.46                                                 |   | 0.00                                                                 |
| Total Proven and Probable Reserves                                |   |                                           |   |                                                 |   |   |   |                                                                        |   | 1,017.20                                                        |   | 665.26                                                 |   | 351.94                                                  |   | 689.17                                                 |   | 328.03                                                               |
|                                                                                  |   |                                           |   |                                                 |   |   |   |                                                                        |   |                                                            |   |                                                   |   |                                                    |   |                                                   |   |                                                                 |

----

| (1) | “Assigned reserves” means coal      which has been committed by the coal company to operating mine shafts,      mining equipment and plant facilities, and all coal which has been leased      by the coal company to others. “Unassigned reserves” represent coal which      has not been committed, and which would require new mineshafts, mining      equipment or plant facilities before operations could begin in the      property. The primary reason for this distinction is to inform investors      which coal reserves will require substantial capital investment before      production can begin. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The proven and probable reserves      are reported as recoverable reserves, which is that part of a coal deposit      which could be economically and legally extracted or produced at the time      of the reserve determination, taking into account mining recovery and      preparation plant yield.                                                                                                                                                                                                                                                                                                                                  |
| (3) | Beckley and White Wolf Energy, Inc. meet      historical metallurgical coal quality    specifications.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| (4) | We sold coal with ash and sulfur      contents as high as 10% and 1.5%, respectively, into the metallurgical      market from Vindex Energy, Buckhannon and Sentinel in 2008. Similarly, we      believe all production from Vindex Energy and portions of Hillman      could be sold on this metallurgical market when production      begins.                                                                                                                                                                                                                                                                                      |

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Table of Contents

|                                                                                      |   |                                      |   | As Received      Quality |   | Total    Reserves |
|-------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|--------------------------|--------|-------------------|
| Mining      Operations                                                                    |   | Assigned or Unassigned      (1)      |   | % Moisture          |   | % Ash        |   | % Sulfur |   | Btu/lb. |   | Lbs. SO2/ million Btu’s |   | <1.2 lbs. SO2 Compliance |   | >1.2 lbs SO2 Non-Compliance |
| Northern      Appalachia                                                                  |   |                                      |   |                     |   |              |   |   |   |   |   |   |   |   |   |   |
| Vindex Energy Corp.(3)                                                                    |   | Assigned                                  |   | 4.66                     |   | 19.27             |   | 1.80 |   | 11,702 |   | 3.07 |   | 0.00 |   | 7.27 |
|                                                                                      |   |         Unassigned              |   | 6.00                     |   | 13.10             |   | 1.75 |   | 12,613 |   | 2.78 |   | 0.00 |   | 52.83 |
| Total Vindex Energy      Corp.                                                            |   |                                      |   | 5.84                     |   | 13.85             |   | 1.76 |   | 12,503 |   | 2.81 |   | 0.00 |   | 60.10 |
| Patriot Mining      Co.                                                                   |   | Assigned                                  |   | 6.00                     |   | 14.96             |   | 2.67 |   | 11,830 |   | 4.52 |   | 0.00 |   | 6.18 |
|                                                                                      |   | Unassigned                                |   | 6.00                     |   | 19.06             |   | 2.13 |   | 11,240 |   | 3.79 |   | 0.00 |   | 0.00 |
|           Total      Patriot Mining Co. |   |                                      |   | 6.00                     |   | 14.96             |   | 2.67 |   | 11,830 |   | 4.52 |   | 0.00 |   | 6.18 |
| Wolf Run Mining Buckhannon      Division(3)                                               |   | Assigned                                  |   | 6.00                     |   | 8.07              |   | 2.21 |   | 13,070 |   | 3.39 |   | 0.00 |   | 28.50 |
|                                                                                      |   |         Unassigned              |   | 6.00                     |   | 8.92              |   | 0.99 |   | 13,069 |   | 1.52 |   | 0.00 |   | 30.55 |
| Total Wolf Run Mining Buckhannon Division                        |   |                                      |   | 6.00                     |   | 8.51              |   | 1.58 |   | 13,069 |   | 2.42 |   | 0.00 |   | 59.05 |
| Sentinel(3)                                                                               |   | Assigned                                  |   | 6.00                     |   | 8.38              |   | 1.48 |   | 13,184 |   | 2.25 |   | 0.00 |   | 47.33 |
|                                                                                      |   |         Unassigned              |   | 6.00                     |   | 8.04              |   | 1.44 |   | 13,353 |   | 2.15 |   | 0.00 |   | 4.94 |
| Total    Sentinel                                                                         |   |                                      |   | 6.00                     |   | 8.35              |   | 1.48 |   | 13,200 |   | 2.24 |   | 0.00 |   | 52.27 |
| CoalQuest Development      LLC(3)                                                         |   | Unassigned                                |   | 6.00                     |   | 9.25              |   | 1.15 |   | 13,145 |   | 1.76 |   | 0.00 |   | 186.09 |
|                                                                                      |   | (Hillman)                                 |   |                     |   |              |   |   |   |   |   |   |   |   |   |   |
| Northern Appalachia Total                                                                 |   |                                      |   |                     |   |              |   |   |   |   |   |   |   | 0.00 |   | 363.69 |
| Central      Appalachia                                                                   |   |                                      |   |                     |   |              |   |   |   |   |   |   |   |   |   |   |
| Eastern                                                                                   |   | Assigned                                  |   | 6.00                     |   | 14.42             |   | 1.24 |   | 11,964 |   | 2.07 |   | 0.00 |   | 4.95 |
|                                                                                      |   |         Unassigned              |   | 6.00                     |   | 14.42             |   | 1.24 |   | 11,964 |   | 2.07 |   | 0.00 |   | 6.70 |
| Total    Eastern                                                                          |   |                                      |   | 6.00                     |   | 14.42             |   | 1.24 |   | 11,964 |   | 2.07 |   | 0.00 |   | 11.65 |
| Hazard                                                                                    |   | Assigned                                  |   | 6.00                     |   | 12.59             |   | 1.38 |   | 12,070 |   | 2.28 |   | 0.00 |   | 61.94 |
| Flint Ridge                                                                               |   | Assigned                                  |   | 6.00                     |   | 8.15              |   | 1.39 |   | 12,768 |   | 2.17 |   | 1.36 |   | 22.82 |
| Knott County                                                                         |   | Assigned                                  |   | 6.09                     |   | 8.73              |   | 1.78 |   | 12,799 |   | 2.78 |   | 0.31 |   | 3.11 |
|                                                                                      |   |         Unassigned              |   | 6.00                     |   | 6.90              |   | 1.58 |   | 13,051 |   | 2.42 |   | 0.00 |   | 11.78 |
| Total Knott County                                                              |   |                                      |   | 6.02                     |   | 7.31              |   | 1.62 |   | 12,994 |   | 2.50 |   | 0.31 |   | 14.89 |
| Raven                                                                                     |   | Assigned                                  |   | 6.00                     |   | 8.00              |   | 1.18 |   | 12,787 |   | 1.85 |   | 0.00 |   | 10.03 |
|                                                                                      |   | Unassigned                                |   | 6.00                     |   | 4.10              |   | 2.07 |   | 13,477 |   | 3.07 |   | 0.00 |   | 2.20 |
| Total Raven                                                                               |   |                                      |   | 6.00                     |   | 7.30              |   | 1.34 |   | 12,911 |   | 2.08 |   | 0.00 |   | 12.23 |
| East    Kentucky                                                                          |   | Assigned                                  |   | 5.88                     |   | 9.37              |   | 0.87 |   | 12,450 |   | 1.40 |   | 0.00 |   | 2.94 |
| ICG Natural      Resources                                                                |   | Assigned                                  |   | 7.00                     |   | 9.65              |   | 0.75 |   | 12,281 |   | 1.22 |   | 9.59 |   | 5.11 |
|                                                                                      |   |         Unassigned              |   | 7.00                     |   | 4.92              |   | 1.27 |   | 13,254 |   | 1.92 |   | 0.00 |   | 30.20 |
|                                                                                      |   |     (Jennie Creek)    |   |                     |   |              |   |   |   |   |   |   |   |   |   |   |
| Total ICG Natural      Resources                                                          |   |                                      |   | 7.00                     |   | 6.47              |   | 1.10 |   | 12,935 |   | 1.70 |   | 9.59 |   | 35.31 |
| Powell Mountain                                                                      |   | Assigned                                  |   | 6.00                     |   | 3.92              |   | 0.62 |   | 14,428 |   | 0.86 |   | 5.05 |   | 0.00 |
|                                                                                      |   | Unassigned                                |   | 6.00                     |   | 8.38              |   | 2.01 |   | 13,194 |   | 3.04 |   | 6.46 |   | 15.56 |
|          Total Powell Mountain     |   |                                      |   | 6.00                     |   | 6.81              |   | 1.75 |   | 13,476 |   | 2.60 |   | 11.51 |   | 15.56 |
| Beckley(2)                                                                                |   | Assigned                                  |   | 6.00                     |   | 4.87              |   | 0.70 |   | 13,913 |   | 1.01 |   | 32.03 |   | 0.00 |
|                                                                                      |   |     (Beckley )             |   |                     |   |              |   |   |   |   |   |   |   |   |   |   |
| White Wolf Energy,      Inc.(2)                                                           |   | Unassigned                                |   | 6.00                     |   | 4.09              |   | 0.63 |   | 14,150 |   | 0.89 |   | 25.91 |   | 0.00 |
|                                                                                      |   |     (Big Creek      ) |   |                     |   |              |   |   |   |   |   |   |   |   |   |   |
| Central Appalachia Total                                                                  |   |                                      |   |                     |   |              |   |   |   |   |   |   |   | 80.71 |   | 177.34 |
| Other                                                                                     |   |                                      |   |                     |   |              |   |   |   |   |   |   |   |   |   |   |
| Illinois                                                                                  |   | Assigned      (Viper)                     |   | 16.00                    |   | 8.80              |   | 2.86 |   | 10,692 |   | 5.35 |   | 0.00 |   | 42.58 |
| ICG Natural      Resources                                                                |   | Unassigned                                |   | 12.53                    |   | 9.32              |   | 2.93 |   | 10,986 |   | 5.33 |   | 0.00 |   | 352.88 |
| Total Other                                                                               |   |                                      |   | 12.90                    |   | 9.27              |   | 2.92 |   | 10,954 |   | 5.33 |   | 0.00 |   | 395.46 |
| Total Proven and Probable      Reserves                                                   |   |                                      |   |                     |   |              |   |   |   |   |   |   |   | 80.71 |   | 936.49 |
|                                                                                      |   |                                      |   |                     |   |              |   |   |   |   |   |   |   |   |   |   |

----

| (1) | “Assigned reserves” means coal      which has been committed by the coal company to operating mine shafts,      mining equipment and plant facilities, and all coal which has been leased      by the coal company to others. “Unassigned reserves” represent coal which      has not been committed, and which would require new mine shafts, mining      equipment or plant facilities before operations could begin in the      property. The primary reason for this distinction is to inform investors      which coal reserves will require substantial capital investment before      production can begin. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Beckley and White Wolf Energy, Inc. meet      historical metallurgical coal quality    specifications.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (3) | We sold coal with ash and sulfur      contents as high as 10% and 1.5%, respectively, into the metallurgical      market from Vindex Energy, Buckhannon and Sentinel in 2008. Similarly, we      believe all production from Vindex Energy and portions of Hillman      could be sold on this metallurgical market when production      begins.                                                                                                                                                                                                                                                                                       |

----

Table of Contents

----

Table of Contents

| Mining      Operations                         |   | Assigned or Unassigned      (1)        |   | Operating (O) or Development (D) |   | State  |   | Mining Method Surface (S)      or Underground (UG) |   | Total Non-Reserve Coal Deposits |   | Steam Non-Reserve Coal Deposits |   | Metallurgical(2)(3) Non-Reserve Coal      Deposits |
|------------------------------------------------|--------|---------------------------------------------|--------|------------------------------------------------------|--------|--------|--------|------------------------------------------------------------------------|--------|------------------------------------------------|--------|------------------------------------------------|--------|--------------------------------------------------------------|
|                                           |   |                                        |   |                                                 |   |   |   |                                                                   |   | (in      million tons)                         |
| Northern      Appalachia                       |   |                                        |   |                                                 |   |   |   |                                                                   |   |                                           |   |                                           |   |                                                         |
| Vindex Energy      Corp.                       |   | Unassigned                                  |   | D                                                    |   | MD     |   | S                                                                      |   | 0.44                                           |   | 0.00                                           |   | 0.44                                                         |
| Wolf Run Mining Buckhannon      Division       |   | Assigned                                    |   | O                                                    |   | WV     |   | UG                                                                     |   | 1.46                                           |   | 1.46                                           |   | 0.00                                                         |
|                                           |   | Unassigned                                  |   | D                                                    |   | WV     |   | UG                                                                     |   | 2.24                                           |   | 2.24                                           |   | 0.00                                                         |
| Total Wolf Run Mining Buckhannon      Division |   |                                        |   |                                                 |   |   |   |                                                                   |   | 3.70                                           |   | 3.70                                           |   | 0.00                                                         |
| Sentinel                                       |   | Assigned                                    |   | O                                                    |   | WV     |   | UG                                                                     |   | 1.64                                           |   | 1.64                                           |   | 0.00                                                         |
|                                           |   | Unassigned                                  |   | D                                                    |   | WV     |   | UG                                                                     |   | 0.76                                           |   | 0.76                                           |   | 0.00                                                         |
| Total    Sentinel                              |   |                                        |   |                                                 |   |   |   |                                                                   |   | 2.40                                           |   | 2.40                                           |   | 0.00                                                         |
| CoalQuest      Development LLC            |   | Unassigned                                  |   | D                                                    |   | WV     |   | UG                                                                     |   | 38.14                                          |   | 38.14                                          |   | 0.00                                                         |
|                                           |   | (Hillman)                                   |   |                                                 |   |   |   |                                                                   |   |                                           |   |                                           |   |                                                         |
| Upshur    Property                             |   | Unassigned                                  |   |                                                 |   | WV     |   | S                                                                      |   | 92.96                                          |   | 92.96                                          |   | 0.00                                                         |
|                                           |   | (Upshur)                                    |   |                                                 |   |   |   |                                                                   |   |                                           |   |                                           |   |                                                         |
| Northern Appalachia Total                      |   |                                        |   |                                                 |   |   |   |                                                                   |   | 137.64                                         |   | 137.20                                         |   | 0.44                                                         |
| Central      Appalachia                        |   |                                        |   |                                                 |   |   |   |                                                                   |   |                                           |   |                                           |   |                                                         |
| Eastern                                        |   | Assigned                                    |   | O                                                    |   | WV     |   | S                                                                      |   | 0.02                                           |   | 0.02                                           |   | 0.00                                                         |
| Hazard                                         |   | Assigned                                    |   | O                                                    |   | KY     |   | S                                                                      |   | 6.39                                           |   | 6.39                                           |   | 0.00                                                         |
| Flint Ridge                                    |   | Assigned                                    |   | O                                                    |   | KY     |   | UG                                                                     |   | 0.94                                           |   | 0.94                                           |   | 0.00                                                         |
| Knott County                              |   | Assigned                                    |   | O                                                    |   | KY     |   | UG                                                                     |   | 0.00                                           |   | 0.00                                           |   | 0.00                                                         |
| East    Kentucky                               |   | Assigned                                    |   | O                                                    |   | KY     |   | S                                                                      |   | 0.00                                           |   | 0.00                                           |   | 0.00                                                         |
|                                           |   | (Mount Sterling)                       |   |                                                 |   |   |   |                                                                   |   |                                           |   |                                           |   |                                                         |
| ICG Natural      Resources                     |   | Assigned                                    |   | D                                                    |   | WV     |   | S                                                                      |   | 0.22                                           |   | 0.22                                           |   | 0.00                                                         |
|                                           |   | (Jennie    Creek)                           |   |                                                 |   |   |   |                                                                   |   |                                           |   |                                           |   |                                                         |
| ICG Natural      Resources                     |   | Unassigned                                  |   | D                                                    |   | KY     |   | S/UG                                                                   |   | 35.59                                          |   | 35.59                                          |   | 0.00                                                         |
|                                           |   | (Martin Co., Muhlenberg Co.) |   |                                                 |   |   |   |                                                                   |   |                                           |   |                                           |   |                                                         |
| ICG Natural      Resources                     |   | Unassigned                                  |   |                                                 |   | WV     |   | UG                                                                     |   | 21.62                                          |   | 21.62                                          |   | 0.00                                                         |
|                                           |   | (Mobil)                                     |   |                                                 |   |   |   |                                                                   |   |                                           |   |                                           |   |                                                         |
| Powell Mountain                           |   | Unassigned                                  |   | O                                                    |   | VA     |   | UG                                                                     |   | 46.07                                          |   | 46.07                                          |   | 0.00                                                         |
| Beckley                                        |   | Unassigned                                  |   | O                                                    |   | WV     |   | UG                                                                     |   | 1.88                                           |   | 0.00                                           |   | 1.88                                                         |
| Juliana Mining Co.,      Inc.                  |   | Unassigned                                  |   | D                                                    |   | WV     |   | S/UG                                                                   |   | 3.10                                           |   | 3.10                                           |   | 0.00                                                         |
| White Wolf Energy,      Inc.                   |   | Unassigned                                  |   | D                                                    |   | VA     |   | UG                                                                     |   | 2.58                                           |   | 2.58                                           |   | 0.00                                                         |
|                                           |   | (Big Creek)                                 |   |                                                 |   |   |   |                                                                   |   |                                           |   |                                           |   |                                                         |
| Central Appalachia Total                       |   |                                        |   |                                                 |   |   |   |                                                                   |   | 118.41                                         |   | 116.53                                         |   | 1.88                                                         |
| Other                                          |   |                                        |   |                                                 |   |   |   |                                                                   |   |                                           |   |                                           |   |                                                         |
| Illinois                                       |   | Assigned                                    |   | O                                                    |   | IL     |   | UG                                                                     |   | 38.47                                          |   | 38.47                                          |   | 0.00                                                         |
|                                           |   | (Viper)                                     |   |                                                 |   |   |   |                                                                   |   |                                           |   |                                           |   |                                                         |
| ICG Natural      Resources                     |   | Unassigned                                  |   |                                                 |   | IL     |   | UG                                                                     |   | 57.92                                          |   | 57.92                                          |   | 0.00                                                         |
|                                           |   | (Illinois)                                  |   |                                                 |   |   |   |                                                                   |   |                                           |   |                                           |   |                                                         |

----

Table of Contents

| Mining      Operations               |   | Assigned orUnassigned(1)        |   | Operating (O) or Development (D) |   | State  |   | Mining Method Surface (S)      or Underground (UG) |   | Total Non-Reserve Coal Deposits |   | Steam Non-Reserve Coal Deposits |   | Metallurgical(2)(3) Non-Reserve Coal      Deposits |
|--------------------------------------|--------|---------------------------------|--------|------------------------------------------------------|--------|--------|--------|------------------------------------------------------------------------|--------|------------------------------------------------|--------|------------------------------------------------|--------|--------------------------------------------------------------|
|                                 |   |                            |   |                                                 |   |   |   |                                                                   |   | (in million      tons)                         |
| ICG Natural      Resources           |   | Unassigned                      |   |                                                 |   | AR     |   | S                                                                      |   | 39.15                                          |   | 39.15                                          |   | 0.00                                                         |
|                                 |   |     (Arkansas)   |   |                                                 |   |   |   |                                                                   |   |                                           |   |                                           |   |                                                         |
|                                 |   | Unassigned                      |   |                                                 |   | CA     |   | UG                                                                     |   | 10.00                                          |   | 10.00                                          |   | 0.00                                                         |
|                                 |   |     (California) |   |                                                 |   |   |   |                                                                   |   |                                           |   |                                           |   |                                                         |
|                                 |   | Unassigned                      |   |                                                 |   | OH     |   | UG                                                                     |   | 98.00                                          |   | 98.00                                          |   | 0.00                                                         |
|                                 |   |     (Ohio)       |   |                                                 |   |   |   |                                                                   |   |                                           |   |                                           |   |                                                         |
|                                 |   | Unassigned                      |   |                                                 |   | MT     |   | S                                                                      |   | 12.00                                          |   | 12.00                                          |   | 0.00                                                         |
|                                 |   |    (Montana)          |   |                                                 |   |   |   |                                                                   |   |                                           |   |                                           |   |                                                         |
|                                 |   | Unassigned                      |   |                                                 |   | WA     |   | S                                                                      |   | 9.86                                           |   | 9.86                                           |   | 0.00                                                         |
|                                 |   | (Washington)                    |   |                                                 |   |   |   |                                                                   |   |                                           |   |                                           |   |                                                         |
| Total Other                          |   |                            |   |                                                 |   |   |   |                                                                   |   | 265.40                                         |   | 265.40                                         |   | 0.00                                                         |
| Total Non-Reserve Coal      Deposits |   |                            |   |                                                 |   |   |   | 521.45                                                                 |   | 519.13                                         |   | 2.32                                           |

----

| (1) | “Assigned non-reserve coal      deposits” mean coal which has been committed by the coal company to      operating mine shafts, mining equipment and plant facilities, and all coal      which has been leased by the coal company to others. “Unassigned      non-reserve coal deposits” represent coal which has not been committed,      and which would require new mine shafts, mining equipment or plant      facilities before operations could begin in the      property. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Beckley and White Wolf Energy,      Inc. meet historical metallurgical coal quality      specifications.                                                                                                                                                                                                                                                                                                                                                                                                   |
| (3) | We sold coal with ash and sulfur      contents as high as 10% and 1.5%, respectively, into the metallurgical      market from Vindex Energy, Buckhannon and Sentinel in 2008. Similarly, we      believe all production from Vindex Energy and portions of Hillman can      be sold on this metallurgicalmarket.                                                                                                                                                                                      |

|                                        |   |                                   |   | As Received      Quality |
|---------------------------------------------|--------|----------------------------------------|--------|--------------------------|
| Mining      Operations                      |   | Assigned or Unassigned      (1)   |   | % Moisture          |   | % Ash |   | % Sulfur |   | Btu/ lb. |   | Lbs. SO2/ million Btu’s |
| Northern      Appalachia                    |   |                                   |   |                     |   |   |   |   |   |   |   |   |
| Vindex Energy Corp.      (3)                |   | Unassigned                             |   | 6.00                     |   | 14.15 |   | 1.49 |   | 12,409 |   | 2.40 |
| Wolf Run Mining Buckhannon      Division(3) |   | Assigned                               |   | 6.00                     |   | 7.43 |   | 2.83 |   | 13,086 |   | 4.32 |
|                                        |   | Unassigned                             |   | 6.00                     |   | 9.00 |   | 1.20 |   | 13,000 |   | 1.85 |
| Sentinel(3)                                 |   | Assigned                               |   | 6.00                     |   | 8.30 |   | 1.40 |   | 13,100 |   | 2.14 |
|                                        |   | Unassigned                             |   | 6.00                     |   | 8.30 |   | 1.40 |   | 13,100 |   | 2.14 |
| Upshur    Property                          |   | Unassigned                             |   | 6.00                     |   | 43.00 |   | 2.00 |   | 8,000 |   | 5.00 |
| Central      Appalachia                     |   |                                   |   |                     |   |   |   |   |   |   |   |   |
| Eastern                                     |   | Assigned                               |   | 6.00                     |   | 12.20 |   | 1.20 |   | 12,400 |   | 1.94 |
| Hazard                                      |   | Assigned                               |   | 6.00                     |   | 13.51 |   | 1.07 |   | 11,880 |   | 1.79 |
| Flint Ridge                                 |   | Assigned                               |   | 6.00                     |   | 8.15 |   | 1.39 |   | 12,768 |   | 2.18 |
| Knott County                           |   | Assigned                               |   | N/A                      |   | N/A |   | N/A |   | N/A |   | N/A |
| East    Kentucky                            |   | Assigned                               |   | N/A                      |   | N/A |   | N/A |   | N/A |   | N/A |
|                                        |   |     (Mt. Sterling) |   |                     |   |   |   |   |   |   |   |   |
| ICG Natural      Resources                  |   | Assigned                               |   | 7.00                     |   | 7.78 |   | 0.63 |   | 12,609 |   | 1.01 |
|                                        |   | (Jennie Creek)                    |   |                     |   |   |   |   |   |   |   |   |
| ICG Natural      Resources                  |   | Unassigned                             |   | 6.00                     |   | 11.47 |   | 1.91 |   | 11,780 |   | 3.24 |
|                                        |   | (Martin Co.,Muhlenberg Co.)  |   |                     |   |   |   |   |   |   |   |   |
| ICG Natural      Resources                  |   | Unassigned(Mobil)                      |   | 6.00                     |   | 12.50 |   | 1.10 |   | 12,000 |   | 1.83 |
| Powell Mountain                        |   | Unassigned                             |   | 6.00                     |   | 5.78 |   | 1.21 |   | 13,348 |   | 1.81 |
| Beckley(2)                                  |   | Unassigned                             |   | 6.00                     |   | 4.80 |   | 0.70 |   | 13,800 |   | 1.01 |
| Juliana Mining Co.,      Inc.               |   | Unassigned                             |   | 6.00                     |   | 7.50 |   | 0.82 |   | 13,100 |   | 1.25 |
| White Wolf Energy,      Inc.(2)             |   | Unassigned                             |   | 6.00                     |   | 7.40 |   | 0.60 |   | 13,500 |   | 0.89 |
|                                        |   |     (Big      Creek)    |   |                     |   |   |   |   |   |   |   |   |

----

Table of Contents

|                       |    |                                 |    | As received      quality |
|----------------------------|--------------|--------------------------------------|--------------|--------------------------|
| Mining      operations     |    | Assigned or Unassigned      (1) |    | % Moisture          |    | % Ash |    | % Sulfur |    | Btu/ lb. |    | Lbs. SO2/ million Btu’s |
| Other                      |    |                                 |    |                     |    |   |    |   |    |   |    |   |
| Illinois                   |    | Assigned                             |    | 16.00                    |   | 9.50 |   | 3.50 |   | 10,500 |   | 6.67 |
|                       |    |          (Viper)      |    |                     |   |   |   |   |   |   |   |   |
| ICG Natural      Resources |    | Unassigned                           |    | 13.00                    |   | 9.00 |   | 3.00 |   | 11,000 |   | 5.45 |
|                       |    | (Illinois)                           |    |                     |   |   |   |   |   |   |   |   |
| ICG Natural      Resources |    | Unassigned                           |    | N/A                      |   | 8.00 |   | 0.40 |   | 5,650 |   | 1.42 |
|                       |    |     (Arkansas)        |    |                     |   |   |   |   |   |   |   |   |
|                       |    |         Unassigned         |    | 6.00                     |   | 13.00 |   | 3.50 |   | 11,700 |   | 5.98 |
|                       |    |    (California)            |    |                     |   |   |   |   |   |   |   |   |
|                       |    |         Unassigned         |    | 6.00                     |   | 8.40 |   | 2.50 |   | 12,650 |   | 3.95 |
|                       |    |   (Ohio)                        |    |                     |   |   |   |   |   |   |   |   |
|                       |    |         Unassigned         |    | N/A                      |   | 8.00 |   | 0.30 |   | 8,900 |   | 0.67 |
|                       |    |   (Montana)                     |    |                     |   |   |   |   |   |   |   |   |
|                       |    |         Unassigned         |    | N/A                      |   | 8.00 |   | 0.50 |   | 7,025 |   | 1.42 |
|                       |    |    (Washington)            |    |                     |    |   |    |   |    |   |    |   |

----

| (1) | “Assigned non-reserve coal      deposits” mean coal which has been committed by the coal company to      operating mine shafts, mining equipment and plant facilities, and all coal      which has been leased by the coal company to others. “Unassigned      non-reserve coal deposits” represent coal which has not been committed,      and which would require new mineshafts, mining equipment or plant      facilities before operations could begin in the      property. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Beckley and White Wolf Energy,      Inc. meet historical metallurgical coal quality      specifications.                                                                                                                                                                                                                                                                                                                                                                                                  |
| (3) | We sold coal with ash and sulfur      contents as high as 10% and 1.5%, respectively, into the metallurgical      market from Vindex Energy, Buckhannon and Sentinel 2008. Similarly, we      believe all production from Vindex Energy and portions of Hillman can      be sold on this metallurgicalmarket.                                                                                                                                                                                        |

| ITEM 3. | LEGAL      PROCEEDINGS |
|--------------|------------------------|

----

Table of Contents

| ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF      SECURITY HOLDERS |
|--------------|----------------------------------------------------------|

----

Table of Contents

| ITEM 5. | MARKET FOR REGISTRANT’S COMMON      EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY      SECURITIES |
|--------------|------------------------------------------------------------------------------------------------------------------------------|

|                                                   | Stock Price |   |
|--------------------------------------------------------|-------------|--------|
|                                                   | High        |   | Low |   |
| 2007                                                   |        |   |   |   |   |   |
| January 1, 2007 through      March 31, 2007  |        | $      | 5.61 |   |   | $ | 4.70 |   |
| April 1, 2007 through      June 30, 2007     |        |   | 6.48 |   |   |   | 5.24 |   |
| July 1, 2007 through      September 30, 2007 |        |   | 6.12 |   |   |   | 3.85 |   |
| October 1, 2007 through      December 31, 2007    |        |   | 5.57 |   |   |   | 4.45 |   |
|                                                   |        |   |   |   |
| 2008                                                   |        |   |   |   |   |   |   |   |
| January 1, 2008 through      March 31, 2008  |        | $      | 6.98 |   |   | $ | 5.28 |   |
| April 1, 2008 through      June 30, 2008     |        |   | 13.28 |   |   |   | 6.01 |   |
| July 1, 2008 through      September 30, 2008 |        |   | 13.11 |   |   |   | 5.61 |   |
| October 1, 2008 through      December 31, 2008    |        |   | 5.98 |   |   |   | 1.50 |   |

|                                                           |    | Equity Compensation Plan      Information                                                                      |
|----------------------------------------------------------------|--------------|----------------------------------------------------------------------------------------------------------------|
| Plan      Category                                             |    | Number of Securities To Be Issued      Upon Exercise      of Outstanding Options |    | Weighted Average Exercise Price of Outstanding Options |    | Number of Securities Remaining Available For Future Issuance Under Equity Compensation      Plans |
| Equity      compensation plans approved by stockholders(1)     |    | 2,512,140                                                                                                      |    | $ | 7.49 |    | 5,175,023 |
| Equity      compensation plans not approved by stockholders(2) |    | 319,052                                                                                                        |    |   | 10.97 |    | —   |
|                                                           |    | 2,831,192                                                                                                      |    | $ | 7.88 |    | 5,175,023 |

----

| (1) | We have two compensation plans:      the 2005 Equity and Performance Incentive Plan, which was approved by      stockholders on October 24, 2005, and the Director Compensation      Plan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Represents stock option grant to      purchase 319,052 shares of our common stock to our President and Chief      Executive Officer pursuant to his employment    agreement.                    |

----

Table of Contents

| ITEM 6. | SELECTED FINANCIAL      DATA |
|--------------|------------------------------|

----

Table of Contents

|                                                         |   |  International Coal Group,      Inc. |                |         | Horizon(Predecessor to International Coal      Group, Inc.) |   |
|--------------------------------------------------------------|--------|-------------------------------------------|---------------------|--------------|-------------------------------------------------------------|--------|
|                                                         |   | Year endedDecember 31,2008           |                |    | Year ended December 31, 2007                 |   |   | Year ended December 31, 2006 |   |   | Year ended December 31, 2005 |   |   | Period from May 13, 2004 to December 31, 2004 |   |   | Period from January 1, 2004 to September 30, 2004 |   |
| Statement of Operations      Data:                           |   |                                      |                |         |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Coal sales      revenues                                     |   | $                                         | 998,245             |         |                                                   | $      | 770,663 |   |   | $ | 833,998 |   |   | $ | 619,038 |   |   | $ | 130,463 |   |   | $ | 346,981 |   |
| Freight and handling      revenues                           |   |                                      | 45,231              |         |                                                   |   | 29,594 |   |   |   | 18,890 |   |   |   | 8,601 |   |   |   | 880 |   |   |   | 3,700 |   |
| Other    revenues                                            |   |                                      | 53,260              |         |                                                   |   | 48,898 |   |   |   | 38,706 |   |   |   | 22,852 |   |   |   | 5,648 |   |   |   | 22,841 |   |
| Total    revenues                                            |   |                                      | 1,096,736           |         |                                                   |   | 849,155 |   |   |   | 891,594 |   |   |   | 650,491 |   |   |   | 136,991 |   |   |   | 373,522 |   |
| Costs and      Expenses:                                     |   |                                      |                |         |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of coal sales and other      revenues                   |   |                                      | 918,655             |         |                                                   |   | 766,158 |   |   |   | 769,332 |   |   |   | 510,097 |   |   |   | 113,527 |   |   |   | 306,429 |   |
| Freight and handling      costs                              |   |                                      | 45,231              |         |                                                   |   | 29,594 |   |   |   | 18,890 |   |   |   | 8,601 |   |   |   | 880 |   |   |   | 3,700 |   |
| Depreciation, depletion and      amortization                |   |                                      | 96,047              |         |                                                   |   | 86,517 |   |   |   | 72,218 |   |   |   | 43,076 |   |   |   | 7,932 |   |   |   | 27,547 |   |
| Selling, general and      administrative                     |   |                                      | 38,147              |         |                                                   |   | 33,325 |   |   |   | 34,578 |   |   |   | 28,828 |   |   |   | 4,205 |   |   |   | 8,477 |   |
| Gain on sale of      assets                                  |   |                                      | (32,518             | )            |                                                   |   | (38,656 | ) |   |   | (1,125 | ) |   |   | (502 | ) |   |   | (10 | ) |   |   | (226 | ) |
| Impairment    loss                                           |   |                                      | 37,428              |         |                                                   |   | 170,402 |   |   |   | —   |   |   |   | —   |   |   |   | —   |   |   |   | —   |   |
| Writedowns and special      items                            |   |                                      | —   |         |                                                   |   | —   |   |   |   | —   |   |   |   | —   |   |   |   | —   |   |   |   | 10,018 |   |
| Total costs and      expenses                                |   |                                      | 1,102,990           |         |                                                   |   | 1,047,340 |   |   |   | 893,893 |   |   |   | 590,100 |   |   |   | 126,534 |   |   |   | 355,945 |   |
| Income (loss) from      operations                           |   |                                      | (6,254              | )            |                                                   |   | (198,185 | ) |   |   | (2,299 | ) |   |   | 60,391 |   |   |   | 10,457 |   |   |   | 17,577 |   |
| Interest and Other Income      (Expense):                    |   |                                      |                |         |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense,      net                                   |   |                                      |  (41,107       | )            |                                                   |   | (35,140 | ) |   |   | (18,091 | ) |   |   | (14,394 | ) |   |   | (3,453 | ) |   |   | (114,211 | ) |
| Reorganization      items                                    |   |                                      | —   |         |                                                   |   | —   |   |   |   | —   |   |   |   | —   |   |   |   | —   |   |   |   | (12,471 | ) |
| Other, net                                                   |   |                                      | —   |         |                                                   |   | 319 |   |   |   | 2,113 |   |   |   | 3,302 |   |   |   | 16 |   |   |   | 1,442 |   |
| Total interest and other income      (expense)               |   |                                      |  (41,107       | )            |                                                   |   | (34,821 | ) |   |   | (15,978 | ) |   |   | (11,092 | ) |   |   | (3,437 | ) |   |   | (125,240 | ) |
| Income (loss) before income taxes      and minority interest |   |                                      | (47,361             | )            |                                                   |   | (233,006 | ) |   |   | (18,277 | ) |   |   | 49,299 |   |   |   | 7,020 |   |   |   | (107,663 | ) |
| Income tax (expense)      benefit                            |   |                                      | 22,711              |         |                                                   |   | 85,623 |   |   |   | 9,015 |   |   |   | (16,986 | ) |   |   | (2,660 | ) |   |   | —   |   |
| Minority      interest                                       |   |                                      | —   |         |                                                   |   | 349 |   |   |   | (58 | ) |   |   | 15 |   |   |   | —   |   |   |   | —   |   |
| Net income      (loss)                                       |   | $                                         | (24,650             | )            |                                                   | $      | (147,034 | ) |   | $ | (9,320 | ) |   | $ | 32,328 |   |   | $ | 4,360 |   |   | $ | (107,663 | ) |

----

Table of Contents

|                                                                           |   |  International Coal Group,      Inc. |        |         | Horizon(Predecessor to International Coal      Group, Inc.) |   |
|--------------------------------------------------------------------------------|--------|-------------------------------------------|-------------|--------------|-------------------------------------------------------------|--------|
|                                                                           |   | Year endedDecember 31,2008           |        |    | Year ended December 31, 2007                 |   |   | Year ended December 31, 2006 |   |   | Year ended December 31, 2005 |   |   | Period from May 13, 2004 to December 31, 2004 |   |   | Period from January 1, 2004 to September 30, 2004 |   |
| Earnings Per Share(1):                                                         |   |                                      |        |         |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                          |   | $                                         | (0.16       | )            |                                                        | $      | (0.97 | ) |   | $ | (0.06 | ) |   | $ | 0.29 |   |   | $ | 0.04 |   |   | $ | —   |   |
| Diluted                                                                        |   |                                      | (0.16       | )            |                                                        |   | (0.97 | ) |   |   | (0.06 | ) |   |   | 0.29 |   |   |   | 0.04 |   |   |   | —   |   |
| Weighted-Average Common Shares      Outstanding  (1):                |   |                                      |        |         |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                          |   |                                      | 152,632,586 |         |                                                        |   | 152,304,461 |   |   |   | 152,028,165 |   |   |   | 111,120,211 |   |   |   | 106,605,999 |   |   |   | —   |   |
| Diluted                                                                        |   |                                      | 152,632,586 |         |                                                        |   | 152,304,461 |   |   |   | 152,028,165 |   |   |   | 111,161,287 |   |   |   | 106,605,999 |   |   |   | —   |   |
| Balance Sheet Data (at period      end):                                       |   |                                      |        |         |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash      equivalents                                                 |   | $                                         | 63,930      |         |                                                        | $      | 107,150 |   |   | $ | 18,742 |   |   | $ | 9,187 |   |   | $ | 23,967 |   |   | $ | —   |   |
| Totalassets                                                                    |   |                                      | 1,349,669   |         |                                                        |   | 1,303,563 |   |   |   | 1,316,891 |   |   |   | 1,051,403 |   |   |   | 457,045 |   |   |   | 539,606 |   |
| Long-term debt and capital      leases                                         |   |                                      | 450,239     |         |                                                        |   | 412,330 |   |   |   | 180,035 |   |   |   | 45,462 |   |   |   | 175,681 |   |   |   | 29 |   |
| Total liabilities and minority      interest                                   |   |                                      | 854,879     |         |                                                        |   | 789,192 |   |   |   | 658,541 |   |   |   | 384,917 |   |   |   | 302,534 |   |   |   | 1,422,290 |   |
| Total stockholders’ equity      (members’ deficit)                 |   |                                      | 494,790     |         |                                                        |   | 514,371 |   |   |   | 658,350 |   |   |   | 666,486 |   |   |   | 154,511 |   |   |   | (882,684 | ) |
| Total liabilities and      stockholders’ equity (members’ deficit) |   |                                      | 1,349,669   |         |                                                        |   | 1,303,563 |   |   |   | 1,316,891 |   |   |   | 1,051,403 |   |   |   | 457,045 |   |   |   | 539,606 |   |
| Statement of Cash Flows      Data:                                             |   |                                      |        |         |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cash    from:                                                              |   |                                      |        |         |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      activities                                                      |   | $                                         | 77,953      |         |                                                        | $      | 22,095 |   |   | $ | 55,591 |   |   | $ | 77,319 |   |   | $ | 30,264 |   |   | $ | 28,085 |   |
| Investing      activities                                                      |   |                                      | (123,264    | )            |                                                        |   | (126,531 | ) |   |   | (160,769 | ) |   |   | (104,713 | ) |   |   | (329,168 | ) |   |   | 3,437 |   |
| Financing      activities                                                      |   |                                      | 2,091       |         |                                                        |   | 192,844 |   |   |   | 114,733 |   |   |   | 12,614 |   |   |   | 322,871 |   |   |   | (32,381 | ) |
| Capital      expenditures                                                      |   |                                      | 132,024     |         |                                                        |   | 160,431 |   |   |   | 165,658 |   |   |   | 108,231 |   |   |   | 5,583 |   |   |   | 6,624 |   |

----

| (1) | Earnings per share data and      average shares outstanding are not presented the period from      January 1, 2004 to September 30, 2004 because they were prepared      on a carve-out basis. The financial statements prepared for predecessor      periods are carve-out financial statements reflecting the operations and      financial condition of the Horizon assets acquired by us as of      September 30, 2004 (collectively, the “combined companies”). The      predecessor financial statements were prepared from the separate accounts      and records maintained by the combined companies. In addition, certain      assets and expense items represent allocations from Horizon. The accounts      allocated include vendor advances, reclamation deposits and selling,      general and administrativeexpenses. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM 7. | MANAGEMENT’S DISCUSSION AND      ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS |
|--------------|-------------------------------------------------------------------------------------------------------|

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|                               |    | Year endedDecember 31,                                             |      |   | Increase (Decrease) |   |
|------------------------------------|--------------|--------------------------------------------------------------------|-----------|--------|--------------------------|--------|
|                               |    | 2008                                                               |      |   | 2007                     |   |   | $ or Tons |   | % |   |
|                               |    | (in thousands, except percentages and per ton data) |      |
| Coal sales      revenues           |    | $                                                                  | 998,245   |   |                     | $      | 770,663 |   |   | $ | 227,582 |   | 30 | % |
| Freight and handling      revenues |    |                                                               | 45,231    |   |                     |   | 29,594 |   |   |   | 15,637 |   | 53 | % |
| Other    revenues                  |    |                                                               | 53,260    |   |                     |   | 48,898 |   |   |   | 4,362 |   | 9 | % |
| Total    revenues                  |    |                                                               | 1,096,736 |   |                     |   | 849,155 |   |   |   | 247,581 |   | 29 | % |
|                               |         |                                                               |      |   |                     |   |   |   |   |   |   |   |   |   |
| Tons sold                          |    |                                                               | 18,914    |   |                     |   | 18,343 |   |   |   | 571 |   | 3 | % |
| Coal sales revenue per      ton    |    | $                                                                  | 52.78     |   |                     | $      |  42.01 |   |   | $ |  10.77 |   |  26 | %  |

|                           |    | Year endedDecember 31,                            |    |   | Increase (Decrease) |   |
|--------------------------------|--------------|---------------------------------------------------|---------|--------|--------------------------|--------|
|                           |    | 2008                                              |    |   | 2007                     |   |   | $ |   | % |   |
|                           |    | (in thousands, except percentages) |    |
| Central      Appalachian       |    | $                                                 | 672,077 |   |                     | $      | 512,352 |   |   | $ | 159,725 |   | 31 | % |
| Northern      Appalachian      |    |                                              | 209,932 |   |                     |   | 121,200 |   |   |   | 88,732 |   | 73 | % |
| Illinois Basin            |    |                                              | 69,796  |   |                     |   | 60,368 |   |   |   | 9,428 |   | 16 | % |
| Ancillary                      |    |                                              | 46,440  |   |                     |   | 76,743 |   |   |   | (30,303 | ) | (39 | )% |
| Total coal sales      revenues |         | $                                                 | 998,245 |   |                     | $      |  770,663 |   |   | $ | 227,582 |   | 30 | % |

|                      |    | Year endedDecember 31,                            |   |   | Increase (Decrease) |   |
|---------------------------|--------------|---------------------------------------------------|--------|--------|--------------------------|--------|
|                      |    | 2008                                              |   |   | 2007                     |   |   | Tons |   | % |   |
|                      |    | (in thousands, except percentages) |   |
| Central      Appalachian  |    |                                              | 11,617 |   |                     |   | 11,323 |   |   |   | 294 |   | 3 | % |
| Northern      Appalachian |    |                                              | 3,937  |   |                     |   | 3,291 |   |   |   | 646 |   | 20 | % |
| Illinois Basin       |    |                                              | 2,331  |   |                     |   | 2,025 |   |   |   | 306 |   | 15 | % |
| Ancillary                 |    |                                              | 1,029  |   |                     |   | 1,704 |   |   |   | (675 | ) | (40 | )% |
| Total tons sold           |         |                                              | 18,914 |   |                     |   |  18,343 |   |   |   | 571 |   | 3 | % |

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|                                              |    | Year endedDecember 31,                                             |        |   | Increase (Decrease) |    |
|---------------------------------------------------|--------------|--------------------------------------------------------------------|-------------|--------|--------------------------|---------|
|                                              |    | 2008                                                               |        |   | 2007                     |    |   | $ |   | % |   |
|                                              |    | (in thousands, except percentages and per ton data) |        |
| Cost of coal      sales                           |    | $                                                                  | 882,983     |   |                     | $       | 732,112 |   |   | $ | 150,871 |   | 21 | % |
| Freight and handling      costs                   |    |                                                               | 45,231      |   |                     |    | 29,594 |   |   |   | 15,637 |   | 53 | % |
| Cost of other      revenues                       |         |                                                               | 35,672      |   |                     |    | 34,046 |   |   |   | 1,626 |   | 5 | % |
| Depreciation, depletion and      amortization     |         |                                                               | 96,047      |   |                     |    | 86,517 |   |   |   | 9,530 |   | 11 | % |
| Selling, general and      administrative expenses |         |                                                               | 38,147      |   |                     |    | 33,325 |   |   |   | 4,822 |   | 14 | % |
| Gain on sale of      assets                       |         |                                                               | (32,518     | )      |                     |    | (38,656 | ) |   |   | 6,138 |   | 16 | % |
| Impairment    loss                                |         |                                                               | 37,428      |   |                     |    | 170,402 |   |   |   | (132,974 | ) | (78 | )% |
| Total costs and      expenses                     |    | $                                                             | 1,102,990   |   |                     | $  | 1,047,340 |   |   | $  | 55,650 |   | 5 | % |
|                                              |         |                                                               |        |   |                     |    |   |   |   |   |   |   |   |   |
| Cost of coal sales per      ton                   |    | $                                                                  |  46.68 |   |                     | $       | 39.91 |   |   | $ |  6.77 |   | 17 | %  |

|                      |    | Year endedDecember 31,                            |    |   | Increase (Decrease) |   |
|---------------------------|--------------|---------------------------------------------------|---------|--------|--------------------------|--------|
|                      |    | 2008                                              |    |   | 2007                     |   |   | $ |   | % |   |
|                      |    | (in thousands, except percentages) |    |
| Central      Appalachian  |    | $                                                 | 595,683 |   |                     | $      | 468,958 |   |   | $ | 126,725 |   | 27 | % |
| Northern      Appalachian |    |                                              | 193,389 |   |                     |   | 147,745 |   |   |   | 45,644 |   | 31 | % |
| Illinois Basin       |    |                                              | 57,424  |   |                     |   | 46,701 |   |   |   | 10,723 |   | 23 | % |
| Ancillary                 |    |                                              | 36,487  |   |                     |   | 68,708 |   |   |   | (32,221 | ) | (47 | )% |
| Cost of coal      sales   |         | $                                                 | 882,983 |   |                     | $      | 732,112 |   |   | $ | 150,871 |   | 21 | % |

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|                      |    | Year endedDecember 31,                            |    |   | Increase (Decrease) |   |
|---------------------------|--------------|---------------------------------------------------|---------|--------|--------------------------|--------|
|                      |    | 2008                                              |    |   | 2007                     |   |   | $ |   | % |   |
|                      |    | (in thousands, except percentages) |    |
| Central      Appalachian  |    | $                                                 | 107,186 |   |                     | $      | 47,442 |   |   | $ | 59,744 |   | 126 | % |
| Northern      Appalachian |    |                                              | 23,687  |   |                     |   | (22,215 | ) |   |   | 45,902 |   | 207 | % |
| Illinois Basin       |    |                                              | 14,784  |   |                     |   | 15,463 |   |   |   | (679 | ) | (4 | )% |
| Ancillary                 |    |                                              | (18,436 | )      |                     |   | 18,363 |   |   |   | (36,799 | ) | (200 | )% |
| Total Adjusted    EBITDA  |         | $                                                 | 127,221 |   |                     | $      | 59,053 |   |   | $ | 68,168 |   | 115 | % |

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|                                          |    | Year endedDecember 31,                            |                |   | Increase (Decrease) |    |
|-----------------------------------------------|--------------|---------------------------------------------------|---------------------|--------|--------------------------|---------|
|                                          |    | 2008                                              |                |   | 2007                     |    |   | $ |   | % |   |
|                                          |    | (in thousands, except percentages) |                |
| Central      Appalachian                      |    |                                              |                |   |                     |    |   |   |   |   |   |   |   |   |
| Net income      (loss)                        |    | $                                            | 47,244              |   |                     | $  | (184,372 | ) |   | $  | 231,616 |   | 126 | % |
| Depreciation, depletion and      amortization |    |                                              | 64,132              |   |                     |    | 60,015 |   |   |   | 4,117 |   | 7 | % |
| Interest expense,      net                    |         |                                              | 2,145               |   |                     |    | 1,397 |   |   |   | 748 |   | 54 | % |
| Income tax      benefit                       |         |                                              | (6,335              | )      |                     |    | —   |   |   |   | (6,335 | ) | (100 | )% |
| Impairment    loss                            |    |                                              | —   |   |                     |    | 170,402 |   |   |   | (170,402 | ) | (100 | )% |
| Adjusted    EBITDA                            |         | $                                                 | 107,186             |   |                     | $       | 47,442 |   |   | $ | 59,744 |   | 126 | % |
|                                          |    |                                              |                |   |                     |    |   |   |   |   |   |   |   |   |

|                                          |    | Year endedDecember 31,                            |                |   | Increase (Decrease) |    |
|-----------------------------------------------|--------------|---------------------------------------------------|---------------------|--------|--------------------------|---------|
|                                          |    | 2008                                              |                |   | 2007                     |    |   | $ |   | % |   |
|                                          |    | (in thousands, except percentages) |                |
| NorthernAppalachian                           |         |                                              |                |   |                     |    |   |   |   |   |   |   |   |   |
| Net income      (loss)                        |    | $                                            | 3,217               |   |                     | $  | (31,790 | ) |   | $  | 35,007 |   | 110 | % |
| Depreciation, depletion and      amortization |    |                                              | 17,884              |   |                     |    | 9,467 |   |   |   | 8,417 |   | 89 | % |
| Interest expense,      net                    |         |                                              | 717                 |   |                     |    | 457 |   |   |   | 260 |   | 57 | % |
| Income tax      benefit                       |         |                                              | (5,322              | )      |                     |    | —   |   |   |   | (5,322 | ) | (100 | )% |
| Impairment    loss                            |         |                                              | 7,191               |   |                     |    | —   |   |   |   | 7,191 |   | 100 | % |
| Minority      interest                        |    |                                              | —   |   |                     |    | (349 | ) |   |   | 349 |   | 100 | % |
| Adjusted    EBITDA                            |         | $                                                 | 23,687              |   |                     | $       | (22,215 | ) |   | $ | 45,902 |   | 207 | % |
|                                          |    |                                              |                |   |                     |    |   |   |   |   |   |   |   |   |

|                                          |    | Year endedDecember 31,                            |   |   | Increase (Decrease) |    |
|-----------------------------------------------|--------------|---------------------------------------------------|--------|--------|--------------------------|---------|
|                                          |    | 2008                                              |   |   | 2007                     |    |   | $ |   | % |   |
|                                          |    | (in thousands, except percentages) |   |
| Illinois Basin                           |         |                                              |   |   |                     |    |   |   |   |   |   |   |   |   |
| Net income                                    |    | $                                                 | 6,959  |   |                     | $  | 8,714 |   |   | $  | (1,755 | ) | (20 | )% |
| Depreciation, depletion and      amortization |    |                                              | 7,342  |   |                     |    | 6,527 |   |   |   | 815 |   | 12 | % |
| Interest expense,      net                    |         |                                              | 327    |   |                     |    | 222 |   |   |   | 105 |   | 47 | % |
| Income tax      expense                       |         |                                              | 156    |   |                     |    | —   |   |   |   | 156 |   | 100 | % |
| Adjusted    EBITDA                            |         | $                                                 | 14,784 |   |                     | $       | 15,463 |   |   | $ | (679 | ) | (4 | )% |
|                                          |    |                                              |   |   |                     |    |   |   |   |   |   |   |   |   |

|                                          |    | Year endedDecember 31,                            |    |   | Increase (Decrease) |    |
|-----------------------------------------------|--------------|---------------------------------------------------|---------|--------|--------------------------|---------|
|                                          |    | 2008                                              |    |   | 2007                     |    |   | $ |   | % |   |
|                                          |    | (in thousands, except percentages) |    |
| Ancillary                                     |         |                                              |    |   |                     |    |   |   |   |   |   |   |   |   |
| Net income      (loss)                        |    | $                                                 | (82,070 | )      |                     | $  | 60,414 |   |   | $  | (142,484 | ) | (236 | )% |
| Depreciation, depletion and      amortization |    |                                              | 6,689   |   |                     |    | 10,508 |   |   |   | (3,819 | ) | (36 | )% |
| Interest expense,      net                    |         |                                              | 37,918  |   |                     |    | 33,064 |   |   |   | 4,854 |   | 15 | % |
| Income tax      benefit                       |    |                                              | (11,210 | )      |                     |    | (85,623 | ) |   |   | 74,413 |   | 87 | % |
| Impairment    loss                            |         |                                              | 30,237  |   |                     |    | —   |   |   |   | 30,237 |   | 100 | % |
| Adjusted    EBITDA                            |         | $                                                 | (18,436 | )      |                     | $       | 18,363 |   |   | $ | (36,799 | ) | (200 | )% |
|                                          |    |                                              |    |   |                     |    |   |   |   |   |   |   |   |   |

|                                          |    | Year endedDecember 31,                            |                |   | Increase (Decrease) |    |
|-----------------------------------------------|--------------|---------------------------------------------------|---------------------|--------|--------------------------|---------|
|                                          |    | 2008                                              |                |   | 2007                     |    |   | $ |   | % |   |
|                                          |    | (in thousands, except percentages) |                |
| Consolidated                                  |    |                                              |                |   |                     |    |   |   |   |   |   |   |   |   |
| Net loss                                      |    | $                                                 | (24,650             | )      |                     |  $ | (147,034 | ) |   |  $ | 122,384 |   | 83 | % |
| Depreciation, depletion and      amortization |    |                                              | 96,047              |   |                     |    | 86,517 |   |   |   | 9,530 |   | 11 | % |
| Interest expense,      net                    |         |                                              | 41,107              |   |                     |    | 35,140 |   |   |   | 5,967 |   | 17 | % |
| Income tax      benefit                       |         |                                              | (22,711             | )      |                     |    | (85,623 | ) |   |   | 62,912 |   | 73 | % |
| Impairment    loss                            |         |                                              | 37,428              |   |                     |    | 170,402 |   |   |   | (132,974 | ) | (78 | )% |
| Minority      interest                        |    |                                              | —   |   |                     |    | (349 | ) |   |   | 349 |   | 100 | % |
| Adjusted    EBITDA                            |         | $                                                 | 127,221             |   |                     | $       | 59,053 |   |   | $ | 68,168 |   | 115 | % |

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|                               |    | Year endedDecember 31,                                             |        |   | Increase (Decrease) |   |
|------------------------------------|--------------|--------------------------------------------------------------------|-------------|--------|--------------------------|--------|
|                               |    | 2007                                                               |        |   | 2006                     |   |   | $ or Tons |   | % |   |
|                               |    | (in thousands, except percentages and per ton data) |        |
| Coal sales      revenues           |    | $                                                                  | 770,663     |   |                     | $      | 833,998 |   |   | $ | (63,335 | ) | (8 | )% |
| Freight and handling      revenues |    |                                                               | 29,594      |   |                     |   | 18,890 |   |   |   | 10,704 |   | 57 | % |
| Other    revenues                  |    |                                                               | 48,898      |   |                     |   | 38,706 |   |   |   | 10,192 |   | 26 | % |
| Total    revenues                  |    | $                                                                  | 849,155     |   |                     | $      | 891,594 |   |   | $ | (42,439 | ) | (5 | )% |
|                               |         |                                                               |        |   |                     |   |   |   |   |   |   |   |   |   |
| Tons sold                          |    |                                                               | 18,343      |   |                     |   | 19,371 |   |   |   | (1,028 | ) | (5 | )% |
| Coal sales revenue per      ton    |    | $                                                                  |  42.01 |   |                     | $      | 43.05 |   |   | $ | (1.04 | ) | (2 | )% |

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|                           |    | Year endedDecember 31,                            |    |   | Increase (Decrease) |   |
|--------------------------------|--------------|---------------------------------------------------|---------|--------|--------------------------|--------|
|                           |    | 2007                                              |    |   | 2006                     |   |   | $ |   | % |   |
|                           |    | (in thousands, except percentages) |    |
| Central      Appalachian       |    | $                                                 | 512,352 |   |                     | $      | 534,429 |   |   | $ | (22,077 | ) | (4 | )% |
| Northern      Appalachian      |    |                                              | 121,200 |   |                     |   | 109,184 |   |   |   | 12,016 |   | 11 | % |
| Illinois Basin            |    |                                              | 60,368  |   |                     |   | 49,842 |   |   |   | 10,526 |   | 21 | % |
| Ancillary                      |    |                                              | 76,743  |   |                     |   | 140,543 |   |   |   | (63,800 | ) | (45 | )% |
| Total coal sales      revenues |         | $                                                 | 770,663 |   |                     | $      | 833,998 |   |   | $ | (63,335 | ) | (8 | )% |

|                      |    | Year endedDecember 31,                            |   |   | Increase (Decrease) |   |
|---------------------------|--------------|---------------------------------------------------|--------|--------|--------------------------|--------|
|                      |    | 2007                                              |   |   | 2006                     |   |   | Tons |   | % |   |
|                      |    | (in thousands, except percentages) |   |
| Central      Appalachian  |    |                                              | 11,323 |   |                     |   | 10,904 |   |   |   | 419 |   | 4 | % |
| Northern      Appalachian |    |                                              | 3,291  |   |                     |   | 3,281 |   |   |   | 10 |   | * | % |
| Illinois Basin       |    |                                              | 2,025  |   |                     |   | 2,020 |   |   |   | 5 |   | * | % |
| Ancillary                 |    |                                              | 1,704  |   |                     |   | 3,166 |   |   |   | (1,462 | ) | (46 | )% |
| Total tons sold           |         |                                              | 18,343 |   |                     |   | 19,371 |   |   |   | (1,028 | ) | (5 | )% |

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|                                              |    | Year endedDecember 31,                                             |      |   | Increase (Decrease) |   |
|---------------------------------------------------|--------------|--------------------------------------------------------------------|-----------|--------|--------------------------|--------|
|                                              |    | 2007                                                               |      |   | 2006                     |   |   | $ |   | % |   |
|                                              |    | (in thousands, except percentages and per ton data) |      |
| Cost of coal      sales                           |    | $                                                                  | 732,112   |   |                     | $      | 739,914 |   |   | $ | (7,802 | ) | (1 | )% |
| Freight and handling      costs                   |    |                                                               | 29,594    |   |                     |   | 18,890 |   |   |   | 10,704 |   | 57 | % |
| Cost of other      revenues                       |         |                                                               | 34,046    |   |                     |   | 29,418 |   |   |   | 4,628 |   | 16 | % |
| Depreciation, depletion and      amortization     |         |                                                               | 86,517    |   |                     |   | 72,218 |   |   |   | 14,299 |   | 20 | % |
| Selling, general and      administrative expenses |         |                                                               | 33,325    |   |                     |   | 34,578 |   |   |   | (1,253 | ) | (4 | )% |
| Net gain on sale of      assets                   |         |                                                               | (38,656   | )      |                     |   | (1,125 | ) |   |   | (37,531 | ) | * | % |
| Goodwill impairment      loss                     |         |                                                               | 170,402   |   |                     |   | —   |   |   |   | 170,402 |   | 100 | % |
| Total costs and      expenses                     |    | $                                                                  | 1,047,340 |   |                     | $      | 893,893 |   |   | $ | 153,447 |   | 17 | % |
|                                              |         |                                                               |      |   |                     |   |   |   |   |   |   |   |   |   |
| Cost of coal sales per      ton                   |    | $                                                                  | 39.91     |   |                     | $      | 38.20 |   |   | $ | 1.71 |   | 4 | % |

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|                      |    | Year endedDecember 31,                            |    |   | Increase (Decrease) |   |
|---------------------------|--------------|---------------------------------------------------|---------|--------|--------------------------|--------|
|                      |    | 2007                                              |    |   | 2006                     |   |   | $ |   | % |   |
|                      |    | (in thousands, except percentages) |    |
| Central      Appalachian  |    | $                                                 | 47,442  |   |                     | $      | 108,598 |   |   | $ | (61,156 | ) | (56 | )% |
| Northern      Appalachian |    |                                              | (22,215 | )      |                     |   | (36,586 | ) |   |   | 14,371 |   | 39 | % |
| Illinois Basin       |    |                                              | 15,463  |   |                     |   | 4,476 |   |   |   | 10,987 |   | 245 | % |
| Ancillary                 |    |                                              | 18,363  |   |                     |   | (4,456 | ) |   |   | 22,819 |   | 512 | % |
| Total Adjusted    EBITDA  |         | $                                                 | 59,053  |   |                     | $      | 72,032 |   |   | $ | (12,979 | ) | (18 | )% |

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|                                          |    | Year endedDecember 31,                            |     |   | Increase (Decrease) |   |
|-----------------------------------------------|--------------|---------------------------------------------------|----------|--------|--------------------------|--------|
|                                          |    | 2007                                              |     |   | 2006                     |   |   | $ |   | % |   |
|                                          |    | (in thousands, except percentages) |     |
| Central      Appalachian                      |    |                                              |     |   |                     |   |   |   |   |   |   |   |   |   |
| Net income      (loss)                        |    | $                                                 | (184,372 | )      |                     | $      | 59,620 |   |   | $ | (243,992 | ) | (409 | )% |
| Depreciation, depletion and      amortization |    |                                              | 60,015   |   |                     |   | 48,050 |   |   |   | 11,965 |   | 25 | % |
| Interest expense,      net                    |         |                                              | 1,397    |   |                     |   | 928 |   |   |   | 469 |   | 51 | % |
| Impairment    loss                            |    |                                              | 170,402  |   |                     |   | —   |   |   |   | 170,402 |   | 100 | % |
| Adjusted    EBITDA                            |         | $                                                 | 47,442   |   |                     | $      | 108,598 |   |   | $ | (61,156 | ) | (56 | )% |

|                                          |    | Year endedDecember 31,                            |    |   | Increase (Decrease) |   |
|-----------------------------------------------|--------------|---------------------------------------------------|---------|--------|--------------------------|--------|
|                                          |    | 2007                                              |    |   | 2006                     |   |   | $ |   | % |   |
|                                          |    | (in thousands, except percentages) |    |
| NorthernAppalachian                           |    |                                              |    |   |                     |   |   |   |   |   |   |   |   |   |
| Net loss                                      |    | $                                                 | (31,790 | )      |                     | $      | (47,907 | ) |   | $ | 16,117 |   | 34 | % |
| Depreciation, depletion and      amortization |    |                                              | 9,467   |   |                     |   | 10,822 |   |   |   | (1,355 | ) | (13 | )% |
| Interest expense,      net                    |         |                                              | 457     |   |                     |   | 441 |   |   |   | 16 |   | 4 | % |
| Minority      interest                        |    |                                              | (349    | )      |                     |   | 58 |   |   |   | (407 | ) | (702 | )% |
| Adjusted    EBITDA                            |         | $                                                 | (22,215 | )      |                     | $      | (36,586 | ) |   | $ | 14,371 |   | 39 | % |
|                                          |    |                                              |    |   |                     |   |   |   |   |   |   |   |   |   |

|                                          |    | Year endedDecember 31,                            |   |   | Increase (Decrease) |   |
|-----------------------------------------------|--------------|---------------------------------------------------|--------|--------|--------------------------|--------|
|                                          |    | 2007                                              |   |   | 2006                     |   |   | $ |   | % |   |
|                                          |    | (in thousands, except percentages) |   |
| Illinois Basin                           |    |                                              |   |   |                     |   |   |   |   |   |   |   |   |   |
| Net income      (loss)                        |    | $                                                 | 8,714  |   |                     | $      | (1,978 | ) |   | $ | 10,692 |   | 541 | % |
| Depreciation, depletion and      amortization |    |                                              | 6,527  |   |                     |   | 6,287 |   |   |   | 240 |   | 4 | % |
| Interest expense,      net                    |         |                                              | 222    |   |                     |   | 167 |   |   |   | 55 |   | 33 | % |
| Adjusted    EBITDA                            |         | $                                                 | 15,463 |   |                     | $      | 4,476 |   |   | $ | 10,987 |   | 245 | % |
|                                          |    |                                              |   |   |                     |   |   |   |   |   |   |   |   |   |

|                                          |    | Year endedDecember 31,                            |    |   | Increase (Decrease) |   |
|-----------------------------------------------|--------------|---------------------------------------------------|---------|--------|--------------------------|--------|
|                                          |    | 2007                                              |    |   | 2006                     |   |   | $ |   | % |   |
|                                          |    | (in thousands, except percentages) |    |
| Ancillary                                     |    |                                              |    |   |                     |   |   |   |   |   |   |   |   |   |
| Net income      (loss)                        |    | $                                                 | 60,414  |   |                     | $      | (19,055 | ) |   | $ | 79,469 |   | 417 | % |
| Depreciation, depletion and      amortization |    |                                              | 10,508  |   |                     |   | 7,059 |   |   |   | 3,449 |   | 49 | % |
| Interest expense,      net                    |         |                                              | 33,064  |   |                     |   | 16,555 |   |   |   | 16,509 |   | 100 | % |
| Income tax      benefit                       |    |                                              | (85,623 | )      |                     |   | (9,015 | ) |   |   | (76,608 | ) | (850 | )% |
| Adjusted    EBITDA                            |         | $                                                 | 18,363  |   |                     | $      | (4,456 | ) |   | $ | 22,819 |   | 512 | % |
|                                          |    |                                              |    |   |                     |   |   |   |   |   |   |   |   |   |

|                                          |    | Year endedDecember 31,                            |     |   | Increase (Decrease) |   |
|-----------------------------------------------|--------------|---------------------------------------------------|----------|--------|--------------------------|--------|
|                                          |    | 2007                                              |     |   | 2006                     |   |   | $ |   | % |   |
|                                          |    | (in thousands, except percentages) |     |
| Consolidated                                  |    |                                              |     |   |                     |   |   |   |   |   |   |   |   |   |
| Net loss                                      |    | $                                                 | (147,034 | )      |                     | $      | (9,320 | ) |   | $ | (137,714 | ) | * | % |
| Depreciation, depletion and      amortization |    |                                              | 86,517   |   |                     |   | 72,218 |   |   |   | 14,299 |   | 20 | % |
| Interest expense,      net                    |         |                                              | 35,140   |   |                     |   | 18,091 |   |   |   | 17,049 |   | 94 | % |
| Income tax      benefit                       |         |                                              | (85,623  | )      |                     |   | (9,015 | ) |   |   | (76,608 | ) | (850 | )% |
| Impairment    loss                            |         |                                              | 170,402  |   |                     |   | —   |   |   |   | 170,402 |   | 100 | % |
| Minority      interest                        |    |                                              | (349     | )      |                     |   | 58 |   |   |   | (407 | ) | (702 | )% |
| Adjusted    EBITDA                            |         | $                                                 | 59,053   |   |                     | $      | 72,032 |   |   | $ | (12,979 | ) | (18 | )% |

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|                                          |    | 2008   |    |
|-----------------------------------------------|--------------|--------|--------------|
| 9.00% Convertible senior notes,      due 2012 |    | $      | 225,000      |    |
| 10.25% Senior notes, due      2014            |    |   | 175,000      |    |
| Equipment    notes                            |    |   | 43,378       |    |
| Capital    leases                             |         |   | 3,817        |   |
| Insurance    notes                            |    |   | 3,044        |    |
| Total                                         |    |   | 450,239      |    |
| Less current      portion                     |    |   | 15,319       |    |
| Long-term    debt                             |    | $      | 434,920      |    |

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|                                                        |   | Payments due by      period |    |
|-------------------------------------------------------------|--------|-----------------------------|---------|
|                                                        |   | Less than 1year   |    |   | 1-3 years |   |   | 3-5 years |   |   | More than 5    years |   |   | Total |   |
| Long-term debt,      capital lease and other obligations(1) |   | $                           | 57,990  |   |   | $ | 101,104 |   |   | $ | 286,703 |   |   | $ | 184,785 |   |   | $ | 630,582 |   |
| Operating      leases                                       |   |                        | 87      |   |   |   | 82 |   |   |   | — |   |   |   | — |   |   |   | 169 |   |
| Coal purchase      obligations(2)                           |   |                        | 22,926  |   |   |   | 14,377 |   |   |   | — |   |   |   | — |   |   |   | 37,303 |   |
| Diesel fuel purchase      obligations(2)                    |   |                        | 73,753  |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 73,753 |   |
| Advisory Services      Agreement(3)                         |   |                        | 2,000   |   |   |   | 3,500 |   |   |   | — |   |   |   | — |   |   |   | 5,500 |   |
| Minimum      royalties                                      |   |                        | 10,111  |   |   |   | 19,640 |   |   |   | 16,636 |   |   |   | 37,004 |   |   |   | 83,391 |   |
| Postretirement medical      benefits                        |   |                        | 523     |   |   |   | 2,505 |   |   |   | 5,068 |   |   |   | 170,230 |   |   |   | 178,326 |   |
| Total                                                       |   | $                           | 167,390 |   |   | $ | 141,208 |   |   | $ | 308,407 |   |   | $ | 392,019 |   |   | $ | 1,009,024 |   |

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| (1) | Amounts are inclusive of interest      assuming interest rates of 10.25% for our senior notes, 9.0% for our      convertible notes and ranging from 5.10% to 8.75% on our equipment      notes. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Reflects estimates of      obligations.                                                                                                                                                         |   |   |
| (3) | See “Certain relationships and      related party transactions.”                                                                                                                    |   |

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|                                                  |   | 2008    |    |   | 2007         |    |
|-------------------------------------------------------|--------|---------|---------|--------|--------------|---------|
| Property, plant, equipment and      mine development  |   | $       | 1,151   |   |    | $       | 376 |   |
| Debt issuance costs,      net                         |   |    | (173    | )      |    |    | (576 | ) |
| Totalassets                                           |   | $  | 978     |   |    | $  | (200 | ) |
|                                                  |   |    |    |   |    |    |   |   |
| Long-term debt and capital      leases                |   | $  | (17,369 | )      |         | $  | (21,082 | ) |
| Deferred tax      liability                           |   |    | 6,935   |   |         |    | 7,893 |   |
| Total      liabilities                                |   |    | (10,434 | )      |         |    | (13,189 | ) |
|                                                  |   |    |    |   |         |    |   |   |
| Paid-in-capital                                       |   |    | 13,517  |   |         |    | 13,517 |   |
| Retained      deficit                                 |   |    | (2,105  | )      |         |    | (528 | ) |
| Total stockholders’      equity                 |   |    | 11,412  |   |         |    | 12,989 |   |
| Total liabilities and      stockholders’ equity |   | $  | 978     |   |    | $  | (200 | ) |

| Interest  expense,      net |   | $      | (2,536 | )      | $      | (849 | )      |
|---------------------------------------|--------|--------|--------|--------|--------|------|--------|
| Income      tax benefit               |   |   | 959    |   |   | 321  |   |
| Net      loss                         |   | $      | (1,577 | )      | $      | (528 | )      |

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| ITEM 7A. | QUANTITATIVE AND QUALITATIVE      DISCLOSURES ABOUT MARKETRISK |
|---------------|----------------------------------------------------------------|

| ITEM 8. | FINANCIAL STATEMENTS AND      SUPPLEMENTARY DATA |
|--------------|--------------------------------------------------|

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| ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH      ACCOUNTANTS ON ACCOUNTING AND FINANCIAL  DISCLOSURE |
|--------------|--------------------------------------------------------------------------------------------|

| ITEM 9A. | CONTROLS AND      PROCEDURES |
|---------------|------------------------------|

| ITEM 9B. | OTHER      INFORMATION |
|---------------|------------------------|

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| ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND      CORPORATE GOVERNANCE |
|---------------|-------------------------------------------------------------|

| ITEM 11. | EXECUTIVE      COMPENSATION |
|---------------|-----------------------------|

| ITEM 12. | SECURITY OWNERSHIP OF CERTAIN      BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER      MATTERS |
|---------------|----------------------------------------------------------------------------------------------------------|

| ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED      TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
|---------------|--------------------------------------------------------------------------------|

| ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND      SERVICE |
|---------------|--------------------------------------------|

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| ITEM 15. | EXHIBITS, FINANCIAL STATEMENT      SCHEDULES |
|---------------|----------------------------------------------|

| (a) | Financial      Statements: |
|-----|----------------------------|

|                                                                                                                 |    | Page   |
|----------------------------------------------------------------------------------------------------------------------|--------------|--------|
| International      Coal Group, Inc. and Subsidiaries                                                                 |    |   |
|                                                                                                                 |         |
| Reports of      Independent Registered Public Accounting Firm                                                        |    | F-1    |
|                                                                                                                 |         |
| Consolidated Balance      Sheets as of December 31, 2008 and 2007                                                    |    | F-3    |
|                                                                                                                 |         |
| Consolidated Statements of Operations for the years ended      December 31, 2008, 2007 and 2006                      |    | F-4    |
|                                                                                                                 |         |
| Consolidated      Statements of Stockholders’ Equity for the years ended December 31, 2008,      2007 and 2006 |    | F-5    |
|                                                                                                                 |         |
| Consolidated      Statements of Cash Flows for the years ended December 31, 2008, 2007 and      2006                 |    | F-6    |
|                                                                                                                 |         |
| Notes to      Consolidated Financial Statements for the years ended December 31, 2008,      2007 and 2006            |    | F-7    |
|                                                                                                                 |         |
| (b)    Exhibits.                                                                                 |    |   |
|                                                                                                                 |         |
| (i)     See the Exhibit      Index.                                                         |    |   |
|                                                                                                                 |         |
| (c)    Financial Statement      Schedules.                                                       |    |   |
|                                                                                                                 |         |
|                                                                                                                 |    | Page   |
| Schedule I—Condensed Financial Information of the      Registrant                                         |         | F-34   |
|                                                                                                                 |         |
| Schedule II—Valuation and Qualifying      Accounts                                                        |    | F-38   |

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REPORT OF INDEPENDENT

|                                         |
|----------------------------------------------|
| /s/ Deloitte &      Touche LLP |
|                                         |
| Cincinnati, Ohio                             |
| February 27,      2009                       |

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|                               |
|------------------------------------|
| /s/ Deloitte & Touche      LLP |
|                               |
| Cincinnati, Ohio                   |
| February 27,      2009             |

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BALANCESHEETS

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|                                                                                                                                                                     |    | December 31,2008 |                |   | December 31, 2007 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|------------------|---------------------|--------|-----------------------------|--------|
| ASSETS                                                                                                                                                                   |    |             |                |   |                        |   |
| CURRENT    ASSETS:                                                                                                                                                       |    |             |                |   |                        |   |   |   |
| Cash and cash      equivalents                                                                                                                                           |    | $                | 63,930              |   |                        | $      | 107,150 |   |
| Accounts receivable, net of      allowances of $1,516      and      $539                                                                                                 |    |             | 75,321              |   |                        |   | 83,765 |   |
| Inventories,      net                                                                                                                                                    |    |             | 58,788              |   |                        |   | 40,679 |   |
| Deferred income      taxes                                                                                                                                               |    |             | 17,649              |   |                        |   | 5,000 |   |
| Prepaid      insurance                                                                                                                                                   |    |             | 13,380              |   |                        |   | 10,618 |   |
| Income taxes      receivable                                                                                                                                             |    |             | 8,030               |   |                        |   | 8,854 |   |
| Prepaid expenses and      other                                                                                                                                          |    |             | 10,893              |   |                        |   | 9,138 |   |
| Total current      assets                                                                                                                                                |    |             | 247,991             |   |                        |   | 265,204 |   |
|                                                                                                                                                                     |         |             |                |   |                        |   |   |   |
| PROPERTY, PLANT, EQUIPMENT AND      MINE DEVELOPMENT, net                                                                                                                |    |             | 1,068,146           |   |                        |   | 974,334 |   |
| DEBT ISSUANCE COSTS,      net                                                                                                                                            |    |             | 10,635              |   |                        |   | 13,466 |   |
| ADVANCE ROYALTIES,      net                                                                                                                                              |    |             | 17,462              |   |                        |   | 14,661 |   |
| GOODWILL                                                                                                                                                                 |    |             | —   |   |                        |   | 30,237 |   |
| OTHER NON-CURRENT      ASSETS                                                                                                                                            |    |             | 5,435               |   |                        |   | 5,661 |   |
| Totalassets                                                                                                                                                              |    | $                | 1,349,669           |   |                        | $      | 1,303,563 |   |
|                                                                                                                                                                     |    |             |                |   |                        |   |   |   |
| LIABILITIES AND STOCKHOLDERS’      EQUITY                                                                                                                          |    |             |                |   |                        |   |   |   |
| CURRENT      LIABILITIES:                                                                                                                                                |    |             |                |   |                        |   |   |   |
| Accounts      payable                                                                                                                                                    |    | $                | 75,810              |   |                        | $      | 70,042 |   |
| Short-term    debt                                                                                                                                                       |         |             | 4,741               |   |                        |   | —   |   |
| Current portion of long-term      debt and capital      leases                                                                                                           |    |             | 15,319              |   |                        |   | 4,234 |   |
| Current portion of reclamation and      mine closure costs                                                                                                               |    |             | 11,139              |   |                        |   | 7,333 |   |
| Current portion of employee      benefits                                                                                                                                |    |             | 3,359               |   |                        |   | 2,925 |   |
| Accrued expenses and      other                                                                                                                                          |    |             | 87,704              |   |                        |   | 62,723 |   |
| Total current      liabilities                                                                                                                                           |    |             | 198,072             |   |                        |   | 147,257 |   |
|                                                                                                                                                                     |         |             |                |   |                        |   |   |   |
| LONG-TERM DEBT AND CAPITAL      LEASES                                                                                                                                   |    |             | 434,920             |   |                        |   | 408,096 |   |
| RECLAMATION AND MINE CLOSURE      COSTS                                                                                                                                  |    |             | 68,107              |   |                        |   | 78,587 |   |
| EMPLOYEE      BENEFITS                                                                                                                                                   |    |             | 61,194              |   |                        |   | 55,132 |   |
| DEFERRED INCOME      TAXES                                                                                                                                               |    |             | 42,468              |   |                        |   | 52,355 |   |
| BELOW-MARKET COAL SUPPLY      AGREEMENTS                                                                                                                                 |    |             | 43,888              |   |                        |   | 39,668 |   |
| OTHER NON-CURRENT      LIABILITIES                                                                                                                                       |    |             | 6,195               |   |                        |   | 8,062 |   |
| Total      liabilities                                                                                                                                                   |    |             | 854,844             |   |                        |   | 789,157 |   |
|                                                                                                                                                                     |         |             |                |   |                        |   |   |   |
| MINORITY      INTEREST                                                                                                                                                   |    |             | 35                  |   |                        |   | 35 |   |
|                                                                                                                                                                     |         |             |                |   |                        |   |   |   |
| COMMITMENTS AND      CONTINGENCIES                                                                                                                                       |    |             | —   |   |                        |   | —   |   |
|                                                                                                                                                                     |         |             |                |   |                        |   |   |   |
| STOCKHOLDERS’      EQUITY:                                                                                                                                         |    |             |                |   |                        |   |   |   |
| Preferred stock – par value $0.01, 200,000,000 shares      authorized, none issued                                                                                 |    |             | —   |   |                        |   | —   |   |
| Common stock – par value $0.01, 2,000,000,000      shares authorized,      153,322,245 and      152,992,109 shares, respectively, issued and      outstanding |    |             | 1,533               |   |                        |   | 1,530 |   |
| Additional paid-in      capital                                                                                                                                          |    |             | 643,480             |   |                        |   | 639,160 |   |
| Accumulated other comprehensive      loss                                                                                                                                |    |             | (5,157              | )      |                        |   | (5,903 | ) |
| Retained      deficit                                                                                                                                                    |    |             | (145,066            | )      |                        |   | (120,416 | ) |
| Total stockholders’      equity                                                                                                                                    |    |             | 494,790             |   |                        |   | 514,371 |   |
| Total liabilities and      stockholders’ equity                                                                                                                    |    | $                | 1,349,669           |   |                        | $      | 1,303,563 |   |
|                                                                                                                                                                     |    |             |                |   |                        |   |   |   |

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STATEMENTS OFOPERATIONS

----

|                                                |         | Year Ended December      31, |                |
|-----------------------------------------------------|--------------|------------------------------|---------------------|
|                                                |    | 2008                         |                |   | 2007 |   |   | 2006 |   |
| REVENUES:                                           |    |                         |                |   |   |   |   |   |   |   |   |   |
| Coal sales      revenues                            |    | $                            | 998,245             |   |   | $ | 770,663 |   |   | $ | 833,998 |   |
| Freight and handling      revenues                  |    |                         | 45,231              |   |   |   | 29,594 |   |   |   | 18,890 |   |
| Other    revenues                                   |    |                         | 53,260              |   |   |   | 48,898 |   |   |   | 38,706 |   |
| Total    revenues                                   |    |                         | 1,096,736           |   |   |   | 849,155 |   |   |   | 891,594 |   |
|                                                |         |                         |                |   |   |   |   |   |   |   |   |   |
| COSTS AND      EXPENSES:                            |    |                         |                |   |   |   |   |   |   |   |   |   |
| Cost of coal      sales                             |    |                         | 882,983             |   |   |   | 732,112 |   |   |   | 739,914 |   |
| Freight and handling      costs                     |    |                         | 45,231              |   |   |   | 29,594 |   |   |   | 18,890 |   |
| Cost of other      revenues                         |    |                         | 35,672              |   |   |   | 34,046 |   |   |   | 29,418 |   |
| Depreciation, depletion and      amortization       |    |                         | 96,047              |   |   |   | 86,517 |   |   |   | 72,218 |   |
| Selling, general and      administrative            |    |                         | 38,147              |   |   |   | 33,325 |   |   |   | 34,578 |   |
| Gain on sale of      assets                         |    |                         | (32,518             | ) |   |   | (38,656 | ) |   |   | (1,125 | ) |
| Goodwill impairment      loss                       |         |                         | 30,237              |   |   |   | 170,402 |   |   |   | —   |   |
| Long-lived asset impairment      loss               |    |                         | 7,191               |   |   |   | —   |   |   |   | —   |   |
| Total costs and      expenses                       |    |                         | 1,102,990           |   |   |   | 1,047,340 |   |   |   | 893,893 |   |
| Loss from      operations                           |    |                         | (6,254              | ) |   |   | (198,185 | ) |   |   | (2,299 | ) |
| INTEREST AND OTHER INCOME      (EXPENSE):           |    |                         |                |   |   |   |   |   |   |   |   |   |
| Interest expense,      net                          |    |                         | (41,107             | ) |   |   | (35,140 | ) |   |   | (18,091 | ) |
| Other, net                                          |    |                         | —   |   |   |   | 319 |   |   |   | 2,113 |   |
| Total interest and other income      (expense)      |    |                         | (41,107             | ) |   |   | (34,821 | ) |   |   | (15,978 | ) |
| Loss before income taxes and      minority interest |    |                         | (47,361             | ) |   |   | (233,006 | ) |   |   | (18,277 | ) |
| INCOME TAX      BENEFIT                             |    |                         | 22,711              |   |   |   | 85,623 |   |   |   | 9,015 |   |
| MINORITY      INTEREST                              |    |                         | —   |   |   |   | 349 |   |   |   | (58 | ) |
| Net loss                                            |    | $                            | (24,650             | ) |   | $ | (147,034 | ) |   | $ | (9,320 | ) |
|                                                |    |                         |                |   |   |   |   |   |   |   |   |   |
| Earnings per      share:                            |    |                         |                |   |   |   |   |   |   |   |   |   |
| Basic and      diluted                              |    | $                            | (0.16               | ) |   | $ | (0.97 | ) |   | $ | (0.06 | ) |
| Weighted-average common shares      outstanding:    |    |                         |                |   |   |   |   |   |   |   |   |   |
| Basic and      diluted                              |    |                         | 152,632,586         |   |   |   | 152,304,461 |   |   |   | 152,028,165 |   |

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STOCKHOLDERS’ EQUITY

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|                                                                                      |         | CommonStock         |         | Additional Paid-in      Capital |                | Unearned Compensation      RestrictedStock |    | Accumulated Other Comprehensive      Income |   | Retained Earnings      (Deficit) |                | Total  |    |
|-------------------------------------------------------------------------------------------|--------------|---------------------|--------------|---------------------------------|---------------------|--------------------------------------------|---------|---------------------------------------------|--------|----------------------------------|---------------------|--------|---------|
| Shares                                                                                    |         | Amount              |
| Balance—December 31,      2005                                                      |    | 152,321,908         |    | $                          | 1,523               |                                  | $  | 632,897                                     |   | $                                | (4,622              | )      | $  | —   |   | $  | 36,688 |   | $  | 666,486 |   |
| Net loss                                                                                  |    | —   |    |                            | —   |                                  |    | —                           |   |                             | —   |   |    | —   |   |   | (9,320 | ) |   | (9,320 | ) |
| Comprehensive      loss                                                                   |    |                |    |                            |                |                                  |    |                                        |   |                             |                |   |    |   |   |   |   |   |   | (9,320 | ) |
| Effect of adoption of SFAS      No. 158, net of tax of $3,079                        |    | —   |    |                            | —   |                                  |    | —                           |   |                             | —   |   |    | (3,846 | ) |   | —   |   |   | (3,846 | ) |
| Effect of adoption of EITF 04-6,      net of tax of $400                             |    | —   |    |                            | —   |                                  |    | —                           |   |                             | —   |   |    | —   |   |   | (638 | ) |   | (638 | ) |
| Effect of adoption of      SFAS No. 123(R)                                      |    | —   |    |                            | —   |                                  |    | (4,622                                      | )      |                             | 4,622               |   |    | —   |   |   | —   |   |   | —   |   |
| Issuance of restricted stock and      stock awards, net of forfeitures                    |    | 584,580             |    |                            | 6                   |                                  |    | (6                                          | )      |                             | —   |   |    | —   |   |   | —   |   |   | —   |   |
| Compensation expense on      share-based awards                                           |    | —   |    |                            | —   |                                  |    | 5,668                                       |   |                             | —   |   |    | —   |   |   | —   |   |   | 5,668 |   |
| Balance—December 31,      2006                                                      |    | 152,906,488         |    |                            | 1,529               |                                  |    | 633,937                                     |   |                             | —   |   |    | (3,846 | ) |   | 26,730 |   |   | 658,350 |   |
| Net loss                                                                                  |    | —   |    |                            | —   |                                  |    | —                           |   |                             | —   |   |    | —   |   |   | (147,034 | ) |   | (147,034 | ) |
| Postretirement benefit obligation      adjustments, net of tax of $1,362                  |    |                |    |                            |                |                                  |    |                                        |   |                             |                |   |    | (2,231 | ) |   | —   |   |   | (2,231 | ) |
| Amortization of accumulated      postretirement benefit obligation, net of tax of    $109 |    | —   |    |                            | —   |                                  |    | —                           |   |                             | —   |   |    | 174 |   |   | —   |   |   | 174 |   |
| Comprehensive      loss                                                                   |    |                |    |                            |                |                                  |    |                                        |   |                             |                |   |    |   |   |   |   |   |   | (149,091 | ) |
| Effect of adoption of FIN      48                                                         |    | —   |    |                            | —   |                                  |    | —                           |   |                             | —   |   |    | —   |   |   | (112 | ) |   | (112 | ) |
| Issuance of restricted stock and      stock awards, net of forfeitures                    |    | 85,621              |    |                            | 1                   |                                  |    | (1                                          | )      |                             | —   |   |    | —   |   |   | —   |   |   | —   |   |
| Compensation expense on      share-based awards                                           |    | —   |    |                            | —   |                                  |    | 5,224                                       |   |                             | —   |   |    | —   |   |   | —   |   |   | 5,224 |   |
| Balance—December 31,      2007                                                      |    | 152,992,109         |    |                            | 1,530               |                                  |    | 639,160                                     |   |                             | —   |   |    | (5,903 | ) |   | (120,416 | ) |   | 514,371 |   |
| Net loss                                                                                  |    |                |         |                            |                |                                       |    |                                        |   |                             |                |   |    |   |   |   | (24,650 | ) |   | (24,650 | ) |
| Postretirement benefit obligation      adjustments, net of tax of $727                    |    |                |         |                            |                |                                       |    |                                        |   |                             |                |   |    | 530 |   |   | —   |   |   | 530 |   |
| Amortization of accumulated      postretirement benefit obligation, net of tax of    $214 |    | —   |         |                            | —   |                                       |    | —                           |   |                             | —   |   |    | 216 |   |   | —   |   |   | 216 |   |
| Comprehensive      loss                                                                   |    |                |         |                            |                |                                       |    |                                        |   |                             |                |   |    |   |   |   |   |   |   | (23,904 | ) |
| Issuance of restricted stock and      stock awards, net of forfeitures                    |    | 312,436             |         |                            | 3                   |                                       |    | (3                                          | )      |                             | —   |   |    | —   |   |   | —   |   |   | —   |   |
| Stock options      exercised                                                              |         | 17,700              |         |                            | —   |                                       |    | 149                                         |   |                             | —   |   |    | —   |   |   | —   |   |   | 149 |   |
| Compensation expense on      share-based awards                                           |    | —   |         |                            | —   |                                       |    | 4,174                                       |   |                             | —   |   |    | —   |   |   | —   |   |   | 4,174 |   |
| Balance—December 31,      2008                                                      |    | 153,322,245         |         | $                               | 1,533               |                                       | $       | 643,480                                     |   | $                                | —   |   | $       | (5,157 | ) | $ | (145,066 | ) | $ | 494,790 |   |
|                                                                                      |         |                |         |                            |                |                                       |    |                                        |   |                             |                |   |    |   |   |   |   |   |   |   |   |

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STATEMENTS OFCASH FLOWS

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|                                                                                                  |         | Year Ended December      31, |                |
|-------------------------------------------------------------------------------------------------------|--------------|------------------------------|---------------------|
|                                                                                                  |    | 2008                         |                |   | 2007 |   |   | 2006 |   |
| CASH FLOWS FROM OPERATING      ACTIVITIES:                                                            |    |                         |                |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                              |    | $                            | (24,650             | ) |   | $ | (147,034 | ) |   | $ | (9,320 | ) |
| Adjustments to reconcile net loss      to net cash from operating activities:                         |    |                         |                |   |   |   |   |   |   |   |   |   |
| Depreciation, depletion and      amortization                                                         |    |                         | 96,047              |   |   |   | 86,517 |   |   |   | 72,218 |   |
| Impairment    loss                                                                                    |    |                         | 37,428              |   |   |   | 170,402 |   |   |   | —   |   |
| Write-off and amortization of      deferred finance costs included in interest expense                |    |                         | 2,831               |   |   |   | 8,291 |   |   |   | 3,418 |   |
| Amortization of accumulated      postretirement benefit obligation                                    |    |                         | 430                 |   |   |   | 283 |   |   |   | —   |   |
| Minority      interest                                                                                |    |                         | —   |   |   |   | (349 | ) |   |   | 58 |   |
| Compensation expense on      share-based awards                                                       |    |                         | 4,174               |   |   |   | 5,224 |   |   |   | 5,668 |   |
| Gain on sale of assets,      net                                                                      |    |                         | (32,518             | ) |   |   | (38,656 | ) |   |   | (1,125 | ) |
| Provision for bad      debt                                                                           |    |                         | 994                 |   |   |   | 503 |   |   |   | —   |   |
| Deferred income      taxes                                                                            |    |                         | (23,477             | ) |   |   | (87,078 | ) |   |   | 3,239 |   |
| Changes in Assets and      Liabilities:                                                               |    |                         |                |   |   |   |   |   |   |   |   |   |
| Accounts      receivable                                                                              |    |                         | 7,918               |   |   |   | (13,606 | ) |   |   | (5,885 | ) |
| Inventories                                                                                           |    |                         | (17,333             | ) |   |   | (92 | ) |   |   | (20,958 | ) |
| Prepaid expenses and      other                                                                       |    |                         | (3,545              | ) |   |   | 3,202 |   |   |   | (10,201 | ) |
| Other non-current      assets                                                                         |    |                         | (2,744              | ) |   |   | (457 | ) |   |   | (2,553 | ) |
| Accounts      payable                                                                                 |    |                         | 7,116               |   |   |   | 12,588 |   |   |   | (1,832 | ) |
| Accrued expenses and      other                                                                       |    |                         | 24,677              |   |   |   | 11,648 |   |   |   | 12,268 |   |
| Reclamation and mine closure      costs                                                               |    |                         | (5,281              | ) |   |   | 5,509 |   |   |   | 5,014 |   |
| Other      liabilities                                                                                |    |                         | 5,886               |   |   |   | 5,200 |   |   |   | 5,582 |   |
| Net cash from operating      activities                                                               |    |                         | 77,953              |   |   |   | 22,095 |   |   |   | 55,591 |   |
| CASH FLOWS FROM INVESTING      ACTIVITIES:                                                            |    |                         |                |   |   |   |   |   |   |   |   |   |
| Proceeds from the sale of      assets                                                                 |    |                         | 8,786               |   |   |   | 46,524 |   |   |   | 3,782 |   |
| Net proceeds from      sale-leaseback                                                                 |    |                         | —   |   |   |   | —   |   |   |   | 5,413 |   |
| Additions to property, plant,      equipment and mine development                                     |    |                         | (131,421            | ) |   |   | (160,431 | ) |   |   | (165,658 | ) |
| Cash paid related to acquisitions,      net                                                           |    |                         | (603                | ) |   |   | (12,717 | ) |   |   | (4,721 | ) |
| Withdrawals (deposits) of      restricted cash                                                        |    |                         | (26                 | ) |   |   | 193 |   |   |   | 415 |   |
| Distribution to joint      venture                                                                    |    |                         | —   |   |   |   | (100 | ) |   |   | —   |   |
| Net cash from investing      activities                                                               |    |                         | (123,264            | ) |   |   | (126,531 | ) |   |   | (160,769 | ) |
| CASH FLOWS FROM FINANCING      ACTIVITIES:                                                            |    |                         |                |   |   |   |   |   |   |   |   |   |
| Borrowings on short-term      debt                                                                    |    |                         | 6,310               |   |   |   | 26,082 |   |   |   | 10,375 |   |
| Repayments on short-term      debt                                                                    |    |                         | (1,569              | ) |   |   | (45,368 | ) |   |   | (20,400 | ) |
| Borrowings on long-term      debt                                                                     |    |                         | 3,496               |   |   |   | 65,000 |   |   |   | 71,543 |   |
| Repayments on long-term debt and      capital leases                                                  |    |                         | (6,295              | ) |   |   | (68,585 | ) |   |   | (112,418 | ) |
| Debt issuance      costs                                                                              |    |                         | —   |   |   |   | (9,285 | ) |   |   | (9,367 | ) |
| Proceeds from stock options      exercised                                                            |    |                         | 149                 |   |   |   | —   |   |   |   | —   |   |
| Proceeds from senior notes      offering                                                              |    |                         | —   |   |   |   | —   |   |   |   | 175,000 |   |
| Proceeds from convertible notes      offering                                                         |    |                         | —   |   |   |   | 225,000 |   |   |   | —   |   |
| Net cash from financing      activities                                                               |    |                         | 2,091               |   |   |   | 192,844 |   |   |   | 114,733 |   |
| NET CHANGE IN CASH AND CASH      EQUIVALENTS                                                          |    |                         | (43,220             | ) |   |   | 88,408 |   |   |   | 9,555 |   |
| CASH AND CASH EQUIVALENTS,      BEGINNING OF PERIOD                                                   |    |                         | 107,150             |   |   |   | 18,742 |   |   |   | 9,187 |   |
| CASH AND CASH EQUIVALENTS, END OF      PERIOD                                                         |    | $                            | 63,930              |   |   | $ | 107,150 |   |   | $ | 18,742 |   |
|                                                                                                  |    |                         |                |   |   |   |   |   |   |   |   |   |
| Supplemental      information:                                                                        |    |                         |                |   |   |   |   |   |   |   |   |   |
| Cash paid for interest (net of      amount capitalized)                                               |    | $                            | 36,193              |   |   | $ | 20,113 |   |   | $ | 4,898 |   |
| Cash (paid) received for income      taxes                                                            |    | $                            | —   |   |   | $ | 2,971 |   |   | $ | (150 | ) |
|                                                                                                  |    |                         |                |   |   |   |   |   |   |   |   |   |
| Supplemental disclosure of      non-cash items:                                                       |    |                         |                |   |   |   |   |   |   |   |   |   |
| Purchases of property, plant,      equipment and mine development through accounts    payable         |    | $                            | 12,942              |   |   | $ | 547 |   |   | $ | 5,145 |   |
| Purchases of property, plant,      equipment and mine development through financing      arrangements |    | $                            | 40,708              |   |   | $ | 10,971 |   |   | $ | 26,175 |   |
| Assets acquired through the      assumption of liabilities                                            |    | $                            | 17,464              |   |   | $ | 2,016 |   |   | $ | —   |   |
| Assets acquired through the      exchange of property                                                 |    | $                            | 22,608              |   |   | $ | —   |   |   | $ | —   |   |
|                                                                                                  |    |                         |                |   |   |   |   |   |   |   |   |   |

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NOTES 

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| 1. | ORGANIZATION |
|----|--------------|

| 2. | SUMMARY OF SIGNIFICANT ACCOUNTING      POLICIES AND GENERAL |
|----|-------------------------------------------------------------|

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|   |   | Below-market contracts |   |
|--------|--------|-----------------------------|--------|
| 2009   |   | $                           | 10,091 |   |
| 2010   |   |                        | 7,881  |   |
| 2011   |   |                        | 3,186  |   |
| 2012   |   |                        | 3,186  |   |
| 2013   |   |                        | 3,186  |   |

|                                                   |   | Years              |   |
|--------------------------------------------------------|--------|--------------------|--------|
| Buildings                                              |   | 10 to 45 |   |
| Mining and other equipment and      related facilities |   | 1 to 20            |   |
| Land      improvements                                 |   |               | 15     |   |
| Transportation      equipment                          |   | 2 to 7             |   |
| Furniture and      fixtures                            |   | 3 to 10            |   |

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|                                                  |   | 2008    |         |   | 2007         |    |
|-------------------------------------------------------|--------|---------|--------------|--------|--------------|---------|
| Property, plant, equipment and      mine development  |   |    | 1,151        |   |    |    | 376 |   |
| Debt issuance costs,      net                         |   |    | (173         | )      |    |    | (576 | ) |
| Totalassets                                           |   | $  | 978          |   |    | $  | (200 | ) |
|                                                  |   |    |         |   |    |    |   |   |
| Long-term debt and capital      leases                |   | $  | (17,369      | )      |         | $  | (21,082 | ) |
| Deferred tax      liability                           |   |    | 6,935        |   |         |    | 7,893 |   |
| Total      liabilities                                |   |    | (10,434      | )      |         |    | (13,189 | ) |
|                                                  |   |    |         |   |         |    |   |   |
| Paid-in-capital                                       |   |    | 13,517  |   |         |    | 13,517 |   |
| Retained      deficit                                 |   |    | (2,105       | )      |         |    | (528 | ) |
| Total stockholders’      equity                 |   |    | 11,412       |   |         |    | 12,989 |   |
| Total liabilities and      stockholders’ equity |   | $  | 978          |   |    | $  | (200 | ) |
|                                                  |   |    |         |   |    |    |   |   |

| Interest  expense,      net |   | $      | (2,536 | )      | $      | (849   | )      |
|---------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Income      tax benefit               |   |   | 959    |   |   | 321    |   |
| Net      loss                         |   | $      | (1,577 | )      | $      | (528   | )      |
|                                  |   |   |   |   |   |   |   |

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| 3. | INVENTORIES |
|----|-------------|

|                                              |    | 2008   |   |   | 2007   |   |
|---------------------------------------------------|--------------|--------|--------|--------|--------|--------|
| Coal                                              |    | $      | 28,436 |   |   | $      | 19,855 |   |
| Parts and      supplies                           |    |   | 32,159 |   |   |   | 21,602 |   |
| Reserve for obsolescence, parts      and supplies |    |   | (1,807 | )      |   |   | (778 | ) |
| Total                                             |    | $      | 58,788 |   |   | $      | 40,679 |   |

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| 4. | PROPERTY, PLANT, EQUIPMENT AND      MINE DEVELOPMENT |
|----|------------------------------------------------------|

|                                                           |    | 2008   |      |   | 2007   |   |
|----------------------------------------------------------------|--------------|--------|-----------|--------|--------|--------|
| Coal lands and mineral      rights                             |    | $      | 586,512   |   |   | $      | 594,034 |   |
| Plant and      equipment                                       |    |   | 571,083   |   |   |   | 442,530 |   |
| Mine      development                                          |    |   | 180,725   |   |   |   | 133,181 |   |
| Land and land      improvements                                |    |   | 24,119    |   |   |   | 20,889 |   |
| Coalbed methane well development      costs                    |    |   | 14,889    |   |   |   | 14,276 |   |
|                                                           |    |   | 1,377,328 |   |   |   | 1,204,910 |   |
| Less accumulated depreciation,      depletion and amortization |    |   | (309,182  | )      |   |   | (230,576 | ) |
| Net property, plant and      equipment                         |    | $      | 1,068,146 |   |   | $      | 974,334 |   |

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| 5. | GOODWILL |
|----|----------|

| Balance as of December 31,      2005                             |    | $      | 344,394             |   |
|------------------------------------------------------------------|--------------|--------|---------------------|--------|
| Adjustments to purchase price      allocation of Horizon         |    |   | (812                | )      |
| Bonding    royalty                                               |    |   | 3,975               |   |
| Adjustments to purchase price      allocation of Anker/CoalQuest |    |   | (150,800            | )      |
| Balance as of December 31,      2006                             |    |   | 196,757             |   |
| Bonding    royalty                                               |    |   | 3,882               |   |
| Impairment    loss                                               |    |   | (170,402            | )      |
| Balance as of December 31,      2007                             |    |   | 30,237              |   |
| Impairment    loss                                               |         |   | (30,237             | )      |
| Balance as of December 31,      2008                             |         | $      | —   |   |

| 6. | ACCRUED EXPENSES AND      OTHER |
|----|---------------------------------|

|                                           |   | 2008   |   |   | 2007   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Compensation and related      expenses         |   | $      | 38,076 |   |   | $      | 25,147 |   |
| Interest                                       |   |   | 17,776 |   |   |   | 17,330 |   |
| Royalties                                      |   |   | 5,826  |   |   |   | 4,282 |   |
| Sales and production related      taxes        |   |   | 5,574  |   |   |   | 5,098 |   |
| Deferred      revenue                          |   |   | 5,506  |   |   |   | — |   |
| Personal property, land and      mineral taxes |   |   | 3,719  |   |   |   | 3,582 |   |
| Transportation                                 |   |   | 3,453  |   |   |   | 2,655 |   |
| Other                                          |   |   | 7,774  |   |   |   | 4,629 |   |
| Total                                          |   | $      | 87,704 |   |   | $      | 62,723 |   |

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| 7. | INVESTMENT IN JOINT OPERATING      AGREEMENT |
|----|----------------------------------------------|

| 8. | ACQUISITION |
|----|-------------|

| 9. | DEBT |
|----|------|

|                                          |   | 2008   |    |   | 2007   |   |
|-----------------------------------------------|--------|--------|---------|--------|--------|--------|
| 9.00% Convertible Senior Notes,      due 2012 |   | $      | 225,000 |   |   | $      | 225,000 |   |
| 10.25% Senior Notes, due      2014            |   |   | 175,000 |   |   |   | 175,000 |   |
| Equipment    notes                            |   |   | 43,378  |   |   |   | 12,330 |   |
| Capital leases and      other                 |   |   | 6,861   |   |   |   | — |   |
| Total                                         |   |   | 450,239 |   |   |   | 412,330 |   |
| Less current      portion                     |   |   | 15,319  |   |   |   | 4,234 |   |
| Long-term    debt                             |   | $      | 434,920 |   |   | $      | 408,096 |   |

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| Year ending      December 31: |   |   |    |
|------------------------------------|--------|--------|---------|
| 2009                               |   | $      | 15,319  |   |
| 2010                               |   |   | 11,771  |   |
| 2011                               |   |   | 9,839   |   |
| 2012                               |   |   | 232,936 |   |
| 2013                               |   |   | 5,306   |   |
| Thereafter                         |   |   | 175,068 |   |
| Total                              |   | $      | 450,239 |   |

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| 10. | ASSET RETIREMENT      OBLIGATION |
|-----|----------------------------------|

|                                                                    |    | 2008   |   |   | 2007   |   |
|-------------------------------------------------------------------------|--------------|--------|--------|--------|--------|--------|
| Balance at beginning of      year                                       |    | $      | 85,920 |   |   | $      | 92,670 |   |
| Revisions of estimated cash      flows                                  |    |   | (5,896 | )      |   |   | (12,620 | ) |
| Liabilities incurred (net of      disposals) or assumed in acquisitions |    |   | 1,438  |   |   |   | 7,295 |   |
| Expenditures                                                            |    |   | (9,594 | )      |   |   | (8,237 | ) |
| Accretion                                                               |    |   | 7,378  |   |   |   | 6,812 |   |
| Balance at end of      year                                             |    | $      | 79,246 |   |   | $      | 85,920 |   |

|                                                                         |    | 2008    |   |   | 2007   |    |
|------------------------------------------------------------------------------|--------------|---------|--------|--------|--------|---------|
| Current portion of reclamation and      mine closure costs                   |    | $       | 11,139 |   |   | $       | 7,333 |   |
| Non-current portion of Reclamation      and mine closure costs (non-current) |    |    | 68,107 |   |   |    | 78,587 |   |
| Total                                                                        |    | $  | 79,246 |   |   | $  | 85,920 |   |

| 11. | INCOME  TAXES |
|-----|---------------|

|                    |    | 2008   |    |   | 2007   |   |    | 2006   |   |
|-------------------------|--------------|--------|---------|--------|--------|--------|---------|--------|--------|
| Current:                |         |   |    |   |   |   |    |   |   |   |   |   |
| Federal                 |         | $      | 375     |   |   | $      | 1,046   |   |   | $ | (11,487 | ) |
| State                   |         |   | 391     |   |   |   | 409     |   |   |   | (767 | ) |
|                    |         |   | 766     |   |   |   | 1,455   |   |   |   | (12,254 | ) |
| Deferred:               |         |   |    |   |   |   |    |   |   |   |   |   |
| Federal                 |         |   | (21,019 | )      |   |   | (75,406 | )      |   |   | 2,637 |   |
| State                   |         |   | (2,458  | )      |   |   | (11,672 | )      |   |   | 602 |   |
|                    |         |   | (23,477 | )      |   |   | (87,078 | )      |   |   | 3,239 |   |
| Income tax      benefit |         | $      | (22,711 | )      |   | $      | (85,623 | )      |   | $ | (9,015 | ) |

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|                                                                                   |    | 2008   |    |   | 2007   |   |                | 2006   |   |
|----------------------------------------------------------------------------------------|--------------|--------|---------|--------|--------|--------|---------------------|--------|--------|
| Federal income tax benefit      computed at statutory rate                             |    | $      | (16,576 | )      |   | $      | (81,430             | )      |   | $ | (6,397 | ) |
| State income tax expense (net of      federal tax benefits) computed at statutory rate |    |   | (1,343  | )      |   |   | (7,321              | )      |   |   | (108 | ) |
| Percentage depletion in excess of      tax basis at statutory rate                     |    |   | (6,477  | )      |   |   | (1,784              | )      |   |   | (3,084 | ) |
| Penalties                                                                              |         |   | 1,869   |   |   |   | —   |   |   |   | —   |   |
| Goodwill      impairment                                                               |    |   | (490    | )      |   |   | 4,046               |   |   |   | —   |   |
| Other                                                                                  |    |   | 306     |   |   |   | 866                 |   |   |   | 574 |   |
| Income tax      benefit                                                                |    | $      | (22,711 | )      |   | $      | (85,623             | )      |   | $ | (9,015 | ) |

|                                                 |    | 2008   |     |   | 2007   |   |
|------------------------------------------------------|--------------|--------|----------|--------|--------|--------|
| Deferred tax      assets:                            |    |   |     |   |   |   |   |   |
| Accrued employee      benefits                       |    | $      | 24,523   |   |   | $      | 23,352 |   |
| Accrued reclamation and      closure                 |    |   | 30,274   |   |   |   | 31,271 |   |
| Below-market      contracts                          |    |   | 15,691   |   |   |   | 16,777 |   |
| NOL    carryover                                     |    |   | 68,909   |   |   |   | 48,637 |   |
| Goodwill                                             |    |   | 53,960   |   |   |   | 40,501 |   |
| Other                                                |    |   | 19,705   |   |   |   | 11,100 |   |
|                                                 |    |   | 213,062  |   |   |   | 171,638 |   |
| Deferred tax      liabilities:                       |    |   |     |   |   |   |   |   |
| Property, coal lands and mine      development costs |    |   | (232,937 | )      |   |   | (212,474 | ) |
| Other                                                |    |   | (4,944   | )      |   |   | (6,519 | ) |
|                                                 |    |   | (237,881 | )      |   |   | (218,993 | ) |
| Net deferred tax      liability                      |    | $      | (24,819  | )      |   | $      | (47,355 | ) |
|                                                 |    |   |     |   |   |   |   |   |
| Classified in balance      sheet:                    |    |   |     |   |   |   |   |   |
| Deferred income      taxes—current             |    | $      | 17,649   |   |   | $      | 5,000 |   |
| Deferred income      taxes—non-current         |    |   | (42,468  | )      |   |   | (52,355 | ) |
| Total                                                |    | $      | (24,819  | )      |   | $      | (47,355 | ) |

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| 12. | EMPLOYEE      BENEFITS |
|-----|------------------------|

|                                      |   | 2008   |   |   | 2007   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|
| Postretirement      benefits              |   | $      | 27,974 |   |   | $      | 25,024 |   |
| Black lung      benefits                  |   |   | 27,455 |   |   |   | 24,788 |   |
| Workers’ compensation      benefits |   |   | 7,847  |   |   |   | 6,781 |   |
| Coal Act      benefits                    |   |   | 1,277  |   |   |   | 1,464 |   |
| Total                                     |   |   | 64,553 |   |   |   | 58,057 |   |
| Less current      portion                 |   |   | 3,359  |   |   |   | 2,925 |   |
| Employee      benefits—non-current  |   | $      | 61,194 |   |   | $      | 55,132 |   |

|                                                        |    | 2008    |                |   | 2007   |    |
|-------------------------------------------------------------|--------------|---------|---------------------|--------|--------|---------|
| Changes in Benefit      Obligations:                        |    |    |                |   |   |    |   |   |
| Accumulated benefit obligations at      beginning of period |    | $       | 25,024              |   |   | $       | 18,331 |   |
| Servicecost                                                 |    |    | 2,607               |   |   |    | 2,057 |   |
| Interest    cost                                            |    |    | 1,627               |   |   |    | 1,054 |   |
| Actuarial      (gain)/loss                                  |    |    | (1,257              | )      |   |    | 3,593 |   |
| Benefits    paid                                            |    |    | (27                 | )      |   |    | (11 | ) |
| Accumulated benefit obligation at      end of period        |    |    | 27,974              |   |   |    | 25,024 |   |
| Fair value of plan assets at end      of period             |    |    | —   |   |   |    | —   |   |
| Net liability      recognized                               |    | $  | 27,974              |   |   | $  | 25,024 |   |

| Balance as of December 31,      2007 |    | $      | 10,235 |   |
|--------------------------------------|--------------|--------|--------|--------|
| Actuarial    gain                    |    |   | (1,257 | )      |
| Amortization of actuarial      gain  |    |   | (430   | )      |
| Balance as of December 31,      2008 |    |   | 8,548  |   |

|                                     |    | 2008    |   |   | 2007   |    |   | 2006         |   |
|------------------------------------------|--------------|---------|--------|--------|--------|---------|--------|--------------|--------|
| Net periodic benefit      cost:          |    |    |   |   |   |    |   |    |   |   |   |   |
| Servicecost                              |    | $  | 2,607  |   |   | $  | 2,057  |    |   | $  | 1,297 |   |
| Interest    cost                         |    |    | 1,627  |   |   |    | 1,054  |    |   |   | 668 |   |
| Amortization of actuarial      gain/loss |    |    | 430    |   |   |    | 283    |    |   |   | 56 |   |
| Benefitcost                              |    | $       | 4,664  |   |   | $       | 3,394  |    |   | $ | 2,021 |   |

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| 2009              |    | $      | 523    |
|-------------------|--------------|--------|--------|
| 2010              |    |   | 925    |
| 2011              |    |   | 1,580  |
| 2012              |    |   | 2,134  |
| 2013              |    |   | 2,934  |
| 2014 – 2018 |    |   | 25,652 |
| Total             |    | $      | 33,748 |

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| 13. | EMPLOYEE STOCK      AWARDS |
|-----|----------------------------|

|                             |   | 2008   |         |   | 2007   |   |              | 2006   |   |
|----------------------------------|--------|--------|--------------|--------|--------|--------|-------------------|--------|--------|
| Expected term (in      years)    |   |   | 5            |   |   |   | 5                 |   |   |   | 5 |   |
| Expected      volatility         |   |   | 43.0% - 48.2 | %      |   |   | 43.0%      - 48.1 | %      |   |   | 48.1 | % |
| Weighted-average      volatility |   |   | 43.5         | %      |   |   | 43.2              | %      |   |   | 48.1 | % |
| Risk-free    rate                |   |   | 1.7% - 3.7   | %      |   |   | 4.0% - 5.1        | %      |   |   | 4.6% - 5.2 | % |
| Expected      dividends          |   |   | —      |   |   |   | —           |   |   |   | — |   |
|                             |   |   |         |   |   |   |              |   |   |   |   |   |

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| Options                                                                            |   | Shares    |   | Weighted- Average Exercise Price |    | Weighted- Average Remaining Contractual Term (years) |    | Aggregate Intrinsic Value |    |
|------------------------------------------------------------------------------------|--------|-----------|--------|-------------------------------------------------|--------------|-------------------------------------------------------------------------------|--------------|-------------------------------------|---------|
| Outstanding at January 1,      2008                                           |   | 2,012,342 |   | $                                               | 8.76         |                                                                     |         |                           |    |   |
| Granted                                                                            |   | 1,055,160 |   |                                            | 6.35         |                                                                          |         |                                |    |   |
| Exercised                                                                          |   | (17,700   | )      |                                            | 8.39         |                                                                          |         |                                |    |   |
| Forfeited and      expired                                                         |   | (218,610  | )      |                                            | 8.44         |                                                                          |         |                                |    |   |
| Outstanding at December 31,      2008                                              |   | 2,831,192 |   |                                            | 7.88         |                                                                          | 7.9          | $                                   | (15,811 | ) |
| Vested or expected to vest at December      31, 2008 |   | 2,725,556 |   |                                            | 7.93         |                                                                          | 7.9          | $                                   | (15,338 | ) |
| Exercisable at December 31,      2008                                              |   | 1,329,907 |   |                                            | 9.28         |                                                                          | 7.0          | $                                   | (9,280  | ) |
|                                                                               |   |      |   |                                            |         |                                                                          |         |                                |    |   |

| Nonvested      Shares               |   | Shares |     |   | Weighted- Average Grant-Date Fair      Value |   |
|-------------------------------------|--------|--------|----------|--------|-------------------------------------------------------------|--------|
| Nonvested at January 1,      2008   |   |   | 574,190  |   |                                                        | $      | 9.15 |   |
| Granted                             |   |   | 349,194  |   |                                                        |   | 6.74 |   |
| Vested                              |   |   | (323,020 | )      |                                                        |   | 10.40 |   |
| Forfeited                           |   |   | (44,020  | )      |                                                        |   | 8.00 |   |
| Nonvested at December 31,      2008 |   |   | 556,344  |   |                                                        |   | 7.00 |   |
|                                |   |   |     |   |                                                        |   |   |   |

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| 14. | VARIABLE INTEREST      ENTITIES |
|-----|---------------------------------|

|                   |   | 2008   |                |   | 2007   |   |    | 2006   |         |
|------------------------|--------|--------|---------------------|--------|--------|--------|--------------|--------|--------------|
| Assets                 |   | $      | 213                 |   |   | $      | 257          |   |    | $ | 3,342 |   |
| Liabilities            |   |   | 138                 |   |   |   | 187          |   |    |   | 1,097 |   |
| Revenue                |   |   | —   |   |   |   | 1,808        |   |    |   | 10,343 |   |
| Net income      (loss) |   |   | —   |   |   |   | (403         | )      |    |   | 130 |   |

| 15. | EARNINGS PER      SHARE |
|-----|-------------------------|

|                                                   |   | 2008   |                |    | 2007         |   |                | 2006   |   |
|--------------------------------------------------------|--------|--------|---------------------|--------------|--------------|--------|---------------------|--------|--------|
| Net loss                                               |   | $      | (24,650             | )            |    | $      | (147,034            | )      |   | $ | (9,320 | ) |
|                                                   |   |   |                |         |    |   |                |   |   |   |   |   |
| Average common shares      outstanding—Basic     |   |   | 152,632,586         |         |    |   | 152,304,461         |   |   |   | 152,028,165 |   |
| Incremental shares arising from      stock options     |   |   | —   |         |    |   | —   |   |   |   | —   |   |
| Incremental shares arising from      restricted shares |   |   | —   |         |    |   | —   |   |   |   | —   |   |
| Incremental shares arising from      convertible notes |   |   | —   |         |         |   | —   |   |   |   | —   |   |
| Average common shares      outstanding—Diluted   |   |   | 152,632,586         |         |    |   | 152,304,461         |   |   |   | 152,028,165 |   |
|                                                   |   |   |                |         |    |   |                |   |   |   |   |   |
| Earnings Per      Share:                               |   |   |                |         |    |   |                |   |   |   |   |   |
| Basic and      Diluted                                 |   | $      | (0.16               | )            |    | $      | (0.97               | )      |   | $ | (0.06 | ) |

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| 16. | COMMITMENTS AND      CONTINGENCIES |
|-----|------------------------------------|

| Year ending      December 31: |   |   |   |
|------------------------------------|--------|--------|--------|
| 2009                               |   | $      | 22,926 |   |
| 2010                               |   |   | 14,377 |   |
| Total                              |   | $      | 37,303 |   |

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|                                           |   | Royalties |   |   | Operating      Leases |   |    | Capital      Leases |   |
|------------------------------------------------|--------|-----------|--------|--------|-----------------------|--------|---------|---------------------|--------|
| Year ended December      31,                   |   |      |   |   |                  |   |    |                |   |
| 2009                                           |   | $         | 10,111 |   |                  | $      | 87      |                |   | $ | 1,726 |   |
| 2010                                           |   |      | 9,925  |   |                  |   | 63      |                |   |   | 1,726 |   |
| 2011                                           |   |      | 9,715  |   |                  |   | 19      |                |   |   | 863 |   |
| 2012                                           |   |      | 8,408  |   |                  |   | — |                |   |   | — |   |
| 2013                                           |   |      | 8,228  |   |                  |   | — |                |   |   | — |   |
| Thereafter                                     |   |      | 37,004 |   |                  |   | — |                |   |   | — |   |
| Total minimum lease      payments              |   | $         | 83,391 |   |                  | $      | 169     |                |   | $ | 4,315 |   |
| Less—amount representing      interest   |   |      |   |   |                  |   |    |                |   |   | 499 |   |
| Present      value of minimum lease payments   |   |      |   |   |                  |   |    |                |   |   | 3,816 |   |
| Less—current    portion                  |   |      |   |   |                  |   |    |                |   |   | 1,430 |   |
| Total      long-term portion of capital leases |   |      |   |   |                  |   |    |                |   | $ | 2,386 |   |

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| 17. | CONCENTRATION OF CREDIT RISK AND      MAJOR CUSTOMERS |
|-----|-------------------------------------------------------|

|       |   | December 31,      2008 Total      Receivable Balance |    |   | Year Ended December 31,      2008 Total      Revenues |   |    | December 31,      2007 Total      Receivable Balance |   |   | Year Ended December 31,      2007 Total      Revenues |   |   | December 31,      2006 Total      Receivable Balance |    |   | Year Ended December 31,      2006 Total      Revenues |   |
|------------|--------|----------------------------------------------------------------|---------|--------|-----------------------------------------------------------------|--------|---------|----------------------------------------------------------------|--------|--------|-----------------------------------------------------------------|--------|--------|----------------------------------------------------------------|---------|--------|-----------------------------------------------------------------|--------|
| Customer A |   | $                                                              | — |   |                                                            | $      | — |                                                           |   | $      | 2,886                                                           |   |   | $                                                              | 97,389  |   |                                                            | $      | 4,893 |   |   | $ | 135,025 |   |
| Customer B |   |                                                           | — |   |                                                            |   | — |                                                           |   |   | —                                                         |   |   |                                                           | — |   |                                                            |   | 6,397 |   |   |   | 117,249 |   |
| Customer C |   |                                                           | — |   |                                                            |   | — |                                                           |   |   | —                                                         |   |   |                                                           | — |   |                                                            |   | 6,041 |   |   |   | 94,935 |   |

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| 18. | FAIR VALUE OF FINANCIAL      INSTRUMENTS |
|-----|------------------------------------------|

| • | Level 1 – | Unadjusted quoted prices for      identical assets or liabilities in active  markets.                                                                                                                                                                                                                                                                                                                      |
|---------|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |            |                                                                                                                                                                                                                                                                                                                                                                                                       |
| • | Level 2 – | Inputs other than Level 1 that are      based on observable market data, either directly or indirectly. These      include quoted prices for similar assets or liabilities in active markets,      quoted prices for identical assets or liabilities in inactive markets,      inputs that are observable that are not prices and inputs that are derived      from or corroborated by observable markets. |
|    |            |                                                                                                                                                                                                                                                                                                                                                                                                       |
| • | Level 3 – | Developed from unobservable data,      reflecting an entity’s ownassumptions.                                                                                                                                                                                                                                                                                                                        |

|                                |   |             |   |   | Fair Value Measurements Using:                       |   |
|-------------------------------------|--------|------------------|--------|--------|---------------------------------------------------------------------|--------|
| Description                         |   | December 31,2008 |   |   | Quoted Pricesin ActiveMarkets forIdenticalAssets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
| Interest Rate Collar      Agreement |   | $                | 1,665  |   |                                                                | $      | — |   |   | $ | 1,665 |   |   | $ | — |   |

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| 19. | RELATED PARTY TRANSACTIONS AND      BALANCES |
|-----|----------------------------------------------|

| 20. | SEGMENT      INFORMATION |
|-----|--------------------------|

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|                                          |   | Central Appalachian |    |   | Northern Appalachian |   |    | Illinois Basin |   |   | Ancillary |   |   | Consolidated |    |
|-----------------------------------------------|--------|--------------------------|---------|--------|---------------------------|--------|---------|---------------------|--------|--------|-----------|--------|--------|--------------|---------|
| Revenue                                       |   | $                        | 702,958 |   |                      | $      | 230,660 |                |   | $      | 79,682    |   |   | $            | 83,436  |   |   | $ | 1,096,736 |   |
| Adjusted    EBITDA                            |   |                     | 107,186 |   |                      |   | 23,687  |                |   |   | 14,784    |   |   |         | (18,436 | )   |   |   | 127,221 |   |
| Depreciation, depletion and      amortization |   |                     | 64,132  |   |                      |   | 17,884  |                |   |   | 7,342     |   |   |         | 6,689   |   |   |   | 96,047 |   |
| Impairment      losses                        |   |                     | — |   |                      |   | 7,191   |                |   |   | —   |   |   |         | 30,237  |   |   |   | 37,428 |   |
| Capital      expenditures                     |   |                     | 111,980 |   |                      |   | 41,624  |                |   |   | 7,146     |   |   |         | 11,069  |   |   |   | 171,819 |   |
| Totalassets                                   |   |                     | 751,018 |   |                      |   | 184,666 |                |   |   | 40,848    |   |   |         | 373,137 |   |   |   | 1,349,669 |   |

|                                          |   | Central Appalachian |    |   | Northern Appalachian |   |    | Illinois Basin |   |   | Ancillary |   |   | Consolidated |    |
|-----------------------------------------------|--------|--------------------------|---------|--------|---------------------------|--------|---------|---------------------|--------|--------|-----------|--------|--------|--------------|---------|
| Revenue                                       |   | $                        | 530,255 |   |                      | $      | 133,284 |                |   | $      | 68,440    |   |   | $            | 117,176 |   |   | $ | 849,155 |   |
| Adjusted    EBITDA                            |   |                     | 47,442  |   |                      |   | (22,215 | )                   |   |   | 15,463    |   |   |         | 18,363  |   |   |   | 59,053 |   |
| Depreciation, depletion and      amortization |   |                     | 60,015  |   |                      |   | 9,467   |                |   |   | 6,527     |   |   |         | 10,508  |   |   |   | 86,517 |   |
| Impairment      losses                        |   |                     | 170,402 |   |                      |   | — |                |   |   | —   |   |   |         | — |   |   |   | 170,402 |   |
| Capital      expenditures                     |   |                     | 129,021 |   |                      |   | 37,896  |                |   |   | 2,639     |   |   |         | 11,695  |   |   |   | 181,251 |   |
| Totalassets                                   |   |                     | 653,288 |   |                      |   | 161,306 |                |   |   | 37,861    |   |   |         | 451,108 |   |   |   | 1,303,563 |   |
| Goodwill                                      |   |                     | — |   |                      |   | — |                |   |   | —   |   |   |         | 30,237  |   |   |   | 30,237 |   |

|                                          |   | Central Appalachian |    |   | Northern Appalachian |   |    | Illinois Basin |   |   | Ancillary |   |   | Consolidated |    |
|-----------------------------------------------|--------|--------------------------|---------|--------|---------------------------|--------|---------|---------------------|--------|--------|-----------|--------|--------|--------------|---------|
| Revenue                                       |   | $                        | 541,844 |   |                      | $      | 122,041 |                |   | $      | 56,606    |   |   | $            | 171,103 |   |   | $ | 891,594 |   |
| Adjusted    EBITDA                            |   |                     | 108,598 |   |                      |   | (36,586 | )                   |   |   | 4,476     |   |   |         | (4,456  | ) |   |   | 72,032 |   |
| Depreciation, depletion and      amortization |   |                     | 48,050  |   |                      |   | 10,822  |                |   |   | 6,287     |   |   |         | 7,059   |   |   |   | 72,218 |   |
| Capital      expenditures                     |   |                     | 95,033  |   |                      |   | 73,173  |                |   |   | 7,950     |   |   |         | 20,822  |   |   |   | 196,978 |   |
| Totalassets                                   |   |                     | 752,200 |   |                      |   | 147,285 |                |   |   | 41,103    |   |   |         | 376,303 |   |   |   | 1,316,891 |   |
| Goodwill                                      |   |                     | 167,105 |   |                      |   | — |                |   |   | —   |   |   |         | 29,652  |   |   |   | 196,757 |   |

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|                                          |         | Year Ended December      31, |                |
|-----------------------------------------------|--------------|------------------------------|---------------------|
|                                          |    | 2008                         |                |   | 2007 |   |   | 2006 |   |
| Net loss                                      |    | $                            | (24,650             | ) |   | $ | (147,034 | ) |   | $ | (9,320 | ) |
| Depreciation, depletion and      amortization |    |                         | 96,047              |   |   |   | 86,517 |   |   |   | 72,218 |   |
| Interest expense,      net                    |    |                         | 41,107              |   |   |   | 35,140 |   |   |   | 18,091 |   |
| Income tax      benefit                       |    |                         | (22,711             | ) |   |   | (85,623 | ) |   |   | (9,015 | ) |
| Impairment    loss                            |    |                         | 37,428              |   |   |   | 170,402 |   |   |   | —   |   |
| Minority      interest                        |    |                         | —   |   |   |   | (349 | ) |   |   | 58 |   |
| Adjusted    EBITDA                            |    | $                            | 127,221             |   |   | $ | 59,053 |   |   | $ | 72,032 |   |
|                                          |    |                         |                |   |   |   |   |   |   |   |   |   |

| 21. | SUPPLEMENTARY GUARANTOR      INFORMATION |
|-----|------------------------------------------|

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| 22. | QUARTERLY    DATA |
|-----|-------------------|

|                                   |    | 2008                                            |    |
|----------------------------------------|--------------|-------------------------------------------------|---------|
|                                   |    | Three months ended March 31 |    |   | Three months ended June 30 |   |   | Three months ended September 30 |   |   | Three months ended December 31 |   |
| Revenue                                |    | $                                               | 251,925 |   |   | $ | 277,885 |   |   | $ | 309,199 |   |   | $ | 257,727 |   |
| Income (loss) from      operations     |    |                                            | (7,369  | ) |   |   | 30,461 |   |   |   | 20,726 |   |   |   | (50,072 | ) |
| Net income      (loss)                 |    |                                            | (11,546 | ) |   |   | 14,138 |   |   |   | 9,708 |   |   |   | (36,950 | ) |
| Basic earnings per common      share   |    | $                                               | (0.08   | ) |   | $ | 0.09 |   |   | $ | 0.06 |   |   | $ | (0.24 | ) |
| Diluted earnings per common      share |    | $                                               | (0.08   | ) |   | $ | 0.08 |   |   | $ | 0.06 |   |   | $ | (0.24 | ) |

|                                   |    | 2007                                            |    |
|----------------------------------------|--------------|-------------------------------------------------|---------|
|                                   |    | Three months ended March 31 |    |   | Three months ended June 30 |   |   | Three months ended September 30 |   |   | Three months ended December 31 |   |
| Revenue                                |    | $                                               | 228,314 |   |   | $ | 208,050 |   |   | $ | 207,829 |   |   | $ | 204,962 |   |
| Income (loss) from      operations     |    |                                            | (8,815  | ) |   |   | (10,850 | ) |   |   | 10,230 |   |   |   | (188,750 | ) |
| Net loss                               |    |                                            | (8,068  | ) |   |   | (10,234 | ) |   |   | (1,283 | ) |   |   | (127,449 | ) |
| Basic earnings per common      share   |    | $                                               | (0.05   | ) |   | $ | (0.07 | ) |   | $ | (0.01 | ) |   | $ | (0.84 | ) |
| Diluted earnings per common      share |    | $                                               | (0.05   | ) |   | $ | (0.07 | ) |   | $ | (0.01 | ) |   | $ | (0.84 | ) |

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ScheduleI—

|                                                                                                                                                                     |    | December 31,2008 |                |   | December 31, 2007 |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|------------------|---------------------|--------|-----------------------------|---------|
| ASSETS                                                                                                                                                                   |    |             |                |   |                        |    |
| DEBT ISSUANCE COSTS,      net                                                                                                                                            |    |             | 9,024               |   |                        |    | 11,206 |   |
| DEFERRED INCOME      TAXES                                                                                                                                               |    |             | 25,741              |   |                        |    | 10,482 |   |
| INVESTMENT IN      SUBSIDIARIES                                                                                                                                          |         |             | 876,734             |   |                        |    | 909,471 |   |
| Totalassets                                                                                                                                                              |    | $                | 911,499             |   |                        | $       | 931,159 |   |
|                                                                                                                                                                     |    |             |                |   |                        |    |   |   |
| LIABILITIES AND STOCKHOLDERS’      EQUITY                                                                                                                          |    |             |                |   |                        |    |   |   |
| CURRENT      LIABILITIES:                                                                                                                                                |    |             |                |   |                        |    |   |   |
| Accrued expenses and      other                                                                                                                                          |    | $                | 16,709              |   |                        |  $ | 16,788 |   |
| Total current      liabilities                                                                                                                                           |    |             | 16,709              |   |                        |    | 16,788 |   |
|                                                                                                                                                                     |         |             |                |   |                        |    |   |   |
| LONG-TERM DEBT AND CAPITAL      LEASES                                                                                                                                   |    |             | 400,000             |   |                        |    | 400,000 |   |
| Total      liabilities                                                                                                                                                   |    |             | 416,709             |   |                        |    | 416,788 |   |
|                                                                                                                                                                     |         |             |                |   |                        |    |   |   |
| COMMITMENTS AND      CONTINGENCIES                                                                                                                                       |    |             | —   |   |                        |    | —   |   |
|                                                                                                                                                                     |         |             |                |   |                        |    |   |   |
| STOCKHOLDERS’      EQUITY:                                                                                                                                         |    |             |                |   |                        |    |   |   |
| Preferred stock – par value $0.01, 200,000,000 shares      authorized, none issued                                                                                 |    |             | —   |   |                        |    | —   |   |
| Common stock – par value $0.01, 2,000,000,000      shares authorized,      153,322,245 and      152,992,109 shares, respectively, issued and      outstanding |    |             | 1,533               |   |                        |    | 1,530 |   |
| Additional paid-in      capital                                                                                                                                          |    |             | 643,480             |   |                        |    | 639,160 |   |
| Accumulated other comprehensive      loss                                                                                                                                |    |             | (5,157              | )      |                        |    | (5,903 | ) |
| Retained      deficit                                                                                                                                                    |    |             | (145,066            | )      |                        |    | (120,416 | ) |
| Total stockholders’      equity                                                                                                                                    |    |             | 494,790             |   |                        |    | 514,371 |   |
| Total liabilities and      stockholders’ equity                                                                                                                    |    | $                | 911,499             |   |                        | $       | 931,159 |   |

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|                                             |         | Year Ended December      31, |                |
|--------------------------------------------------|--------------|------------------------------|---------------------|
|                                             |    | 2008                         |                |   | 2007 |   |   | 2006 |   |
| INCOME FROM      OPERATIONS                      |    | $                            | —   |   |   | $ | —   |   |   | $ | —   |   |
| INTEREST AND OTHER INCOME      (EXPENSE):        |    |                         |                |   |   |   |   |   |   |   |   |   |
| Interest expense,      net                       |    |                         | (40,369             | ) |   |   | (27,730 | ) |   |   | (9,684 | ) |
| Loss before income      taxes                    |    |                         | (40,369             | ) |   |   | (27,730 | ) |   |   | (9,684 | ) |
| INCOME TAX (EXPENSE)      BENEFIT                |    |                         | 15,259              |   |   |   | 10,482 |   |   |   | 3,702 |   |
| EQUITY IN NET INCOME (LOSS) OF      SUBSIDIARIES |         |                         | 460                 |   |   |   | (129,786 | ) |   |   | (3,338 | ) |
| Net loss                                         |    | $                            | (24,650             | ) |   | $ | (147,034 | ) |   | $ | (9,320 | ) |
|                                             |    |                         |                |   |   |   |   |   |   |   |   |   |
| Earnings per      share:                         |    |                         |                |   |   |   |   |   |   |   |   |   |
| Basic and      diluted                           |    | $                            | (0.16               | ) |   | $ | (0.97 | ) |   | $ | (0.06 | ) |
| Weighted-average common shares      outstanding: |    |                         |                |   |   |   |   |   |   |   |   |   |
| Basic and      diluted                           |    |                         | 152,632,586         |   |   |   | 152,304,461 |   |   |   | 152,028,165 |   |

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|                                                |         | Year Ended December      31, |                |
|-----------------------------------------------------|--------------|------------------------------|---------------------|
|                                                |    | 2008                         |                |   | 2007 |   |   | 2006 |   |
| NET CASH FROM OPERATING      ACTIVITIES             |    | $                            | (38,266             | ) |   | $ | (19,036 | )  |   | $ | —   |   |
| CASH FLOWS FROM INVESTING      ACTIVITIES:          |    |                         |                |   |   |   |   |   |   |   |   |   |
| Investment in      subsidiaries                     |    |                         | 38,266              |   |   |   | (198,121 | ) |   |   | (170,047 | )  |
| Net cash from investing      activities             |    |                         | 38,266              |   |   |   | (198,121 | ) |   |   | (170,047 | ) |
| CASH FLOWS FROM FINANCING      ACTIVITIES:          |    |                         |                |   |   |   |   |   |   |   |   |   |
| Proceeds from senior notes      offering            |    |                         | —   |   |   |   | —   |   |   |   | 175,000 |   |
| Proceeds from convertible notes      offering       |    |                         | —   |   |   |   | 225,000 |   |   |   |   |   |
| Debt issuance      costs                            |    |                         | —   |   |   |   | (7,843 | ) |   |   | (4,953 | )  |
| Net cash from financing      activities             |    |                         | —   |   |   |   | 217,157 |   |   |   | 170,047 |   |
| NET CHANGE IN CASH AND CASH      EQUIVALENTS        |    |                         | —   |   |   |   | —   |   |   |   | —   |   |
| CASH AND CASH EQUIVALENTS,      BEGINNING OF PERIOD |    |                         | —   |   |   |   | —   |   |   |   | —   |   |
| CASH AND CASH EQUIVALENTS, END OF      PERIOD       |    | $                            | —   |   |   | $ | —   |   |   | $ | —   |   |

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Table of Contents

| LONG-TERM    DEBT |
|-------------------|

|                                          |   | 2008   |    |   | 2007   |   |
|-----------------------------------------------|--------|--------|---------|--------|--------|--------|
| 9.00% Convertible Senior Notes,      due 2012 |   | $      | 225,000 |   |   | $      | 225,000 |   |
| 10.25% Senior Notes, due      2014            |   |   | 175,000 |   |   |   | 175,000 |   |
| Total                                         |   |   | 400,000 |   |   |   | 400,000 |   |
| Less current      portion                     |   |   | — |   |   |   | — |   |
| Long-term    debt                             |   | $      | 400,000 |   |   | $      | 400,000 |   |
|                                          |   |   |    |   |   |   |   |   |

| Year ending      December 31: |   |   |    |
|------------------------------------|--------|--------|---------|
| 2009                               |   | $      | — |   |
| 2010                               |   |   | — |   |
| 2011                               |   |   | — |   |
| 2012                               |   |   | 225,000 |   |
| 2013                               |   |   | — |   |
| Thereafter                         |   |   | 175,000 |   |
| Total                              |   | $      | 400,000 |   |
|                               |   |   |    |   |

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Table of Contents

ScheduleII—

| Description                                   |   | Balance at Beginning of    Period |    |   | Charged to Revenue, Costs or Expenses |   |   | Other Additions (Deductions) |   |   | Balance at End of Period |   |
|-----------------------------------------------|--------|--------------------------------------------------|---------|--------|-----------------------------------------------------------|--------|--------|----------------------------------------|--------|--------|-----------------------------------------|--------|
|                                          |   | (in    thousands)                                |    |
| Year ended December 31,      2008             |   |                                             |    |   |                                                      |   |   |                                   |   |   |                                    |   |
| Allowance for doubtful      accounts          |   | $                                                | 539     |   |                                                      | $      | 994    |                                   |   | $      | (17                                     | )      |   | $ | 1,516 |   |
| Reserve for inventory      obsolescence       |   |                                             | 778     |   |                                                      |   | 1,029  |                                   |   |   | —                                 |   |   |   | 1,807 |   |
| Reserve for loss—advance      royalties |   |                                             | 3,771   |   |                                                      |   | 630    |                                   |   |   | (492                                    | )      |   |   | 3,909 |   |
| Year ended December 31,      2007             |   |                                             |    |   |                                                      |   |   |                                   |   |   |                                    |   |   |   |   |   |
| Allowance for doubtful      accounts          |   | $                                                | 36      |   |                                                      | $      | 503    |                                   |   | $      | —                                 |   |   | $ | 539 |   |
| Reserve for inventory      obsolescence       |   |                                             | 576     |   |                                                      |   | (82    | )                                      |   |   | 284                                     |   |   |   | 778 |   |
| Reserve for loss—advance      royalties |   |                                             | 638     |   |                                                      |   | 3,414  |                                   |   |   | (281                                    | )      |   |   | 3,771 |   |
| Year ended December 31,      2006             |   |                                             |    |   |                                                      |   |   |                                   |   |   |                                    |   |   |   |   |   |
| Allowance for doubtful      accounts          |   | $                                                | — |   |                                                      | $      | 36     |                                   |   | $      | —                                 |   |   | $ | 36 |   |
| Reserve for inventory      obsolescence       |   |                                             | 311     |   |                                                      |   | 265    |                                   |   |   | —                                 |   |   |   | 576 |   |
| Reserve for loss—advance      royalties |   |                                             | — |   |                                                      |   | (412   | )                                      |   |   | 1,050                                   |   |   |   | 638 |   |

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| INTERNATIONAL COAL GROUP,      INC. |
|-------------------------------------|
|                                |   |
| By:                                 | /s/ Bennett K.      Hatfield |
|                                | Bennett K.      HatfieldPresident and Chief Executive      Officer |

| Signature                            |    | Title                                                       |   | Date              |
|--------------------------------------|--------------|-------------------------------------------------------------|--------|-------------------|
|                                 |         |                                                        |   |              |
| /s/ Bennett K.      Hatfield         |         | President, Chief Executive Officer      and Director        |   | February 27, 2008 |
| Bennett K.      Hatfield             |         | (Principal Executive      Officer)                          |   |              |
|                                 |         |                                                        |
| /s/ Bradley W.      Harris           |    | Senior Vice President and Chief      Financial Officer      |   | February 27, 2008 |
| Bradley W.      Harris               |    | (Principal Accounting and      Principal Financial Officer) |   |              |
|                                 |         |                                                        |
| *                                    |    | Non-Executive Chairman and      Director                    |   | February 27, 2008 |
|        Wilbur L. Ross,      Jr. |         |                                                        |
|                                 |         |                                                        |   |              |
| *                                    |    | Director                                                    |   | February 27, 2008 |
| Maurice E. Carino,      Jr.          |    |                                                        |   |              |
|                                 |         |                                                        |
| *                                    |    | Director                                                    |   | February 27, 2008 |
| Cynthia B.      Bezik                |    |                                                        |   |              |
|                                 |         |                                                        |
| *                                    |    | Director                                                    |   | February 27, 2008 |
| William J.      Catacosinos          |    |                                                        |   |              |
|                                 |         |                                                        |
| *                                    |    | Director                                                    |   | February 27, 2008 |
| Stanley N. Gaines                    |    |                                                        |   |              |
|                                 |         |                                                        |
| *                                    |    | Director                                                    |   | February 27, 2008 |
| Samuel A.      Mitchell              |    |                                                        |   |              |
|                                 |         |                                                        |   |              |
| *                                    |    | Director                                                    |   | February 27, 2008 |
| Wendy L.      Teramoto               |    |                                                        |   |              |

| * | The undersigned, by signing his      name hereto, does sign and execute this Annual Report on Form 10-K      pursuant to the Powers of Attorney executed by the above-named officers      and Directors of the Company and filed with the Securities and Exchange      Commission on behalf of such officers and  Directors. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| INTERNATIONAL COAL GROUP,      INC. |
|-------------------------------------|
|                                |   |
| By:                                 | /s/ Bennett K.      Hatfield |
|                                | Bennett K. Hatfield,      Attorney-in-Fact |

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EXHIBITINDEX

| Exhibit No. |    | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |    | Note |   |
|------------------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|------|--------|
| 2.1    |    | Business Combination Agreement      among International Coal Group, Inc. (n/k/a ICG, Inc.), ICG Holdco, Inc.      (n/k/a International Coal Group, Inc.), ICG Merger Sub, Inc., Anker Merger      Sub, Inc. and Anker Coal Group, Inc., dated as of March 31,      2005                                                                                                                                                                                                                                                                                                                                                                                                                   |    | (B   | )      |
|             |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 2.2    |    | First Amendment to the Business      Combination Agreement among International Coal Group, Inc. (f/k/a ICG      Holdco, Inc.), ICG, Inc. (f/k/a International Coal Group, Inc.), ICG      Merger Sub, Inc., Anker Merger Sub, Inc. and Anker Coal Group, Inc., dated      as of May 10, 2005                                                                                                                                                                                                                                                                                                                                                                                              |    | (B   | )      |
|             |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 2.3    |    | Second Amendment to the Business      Combination Agreement among International Coal Group, Inc. (f/k/a ICG      Holdco, Inc.), ICG, Inc. (f/k/a International Coal Group, Inc.), ICG      Merger Sub, Inc., Anker Merger Sub, Inc. and Anker Coal Group, Inc.,      effective as of June 29, 2005                                                                                                                                                                                                                                                                                                                                                                                        |    | (C   | )      |
|             |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 2.4    |    | Business Combination Agreement      among International Coal Group, Inc. (n/k/a ICG, Inc.), ICG Holdco, Inc.      (n/k/a International Coal Group, Inc.), CoalQuest Merger Sub LLC,      CoalQuest Development LLC and the members of CoalQuest Development LLC,      dated as of March 31, 2005                                                                                                                                                                                                                                                                                                                                                                                          |    | (B   | )      |
|             |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 2.5    |    | First Amendment to the Business      Combination Agreement among International Coal Group, Inc. (f/k/a ICG      Holdco, Inc.), ICG, Inc. (f/k/a International Coal Group, Inc.), CoalQuest      Merger Sub LLC, CoalQuest Development LLC and the members of CoalQuest      Development LLC, dated as of May 10, 2005                                                                                                                                                                                                                                                                                                                                                                     |    | (B   | )      |
|             |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 2.6    |    | Second Amendment to the Business      Combination Agreement among International Coal Group, Inc. (f/k/a ICG      Holdco, Inc.), ICG, Inc. (f/k/a International Coal Group, Inc.), CoalQuest      Merger Sub LLC, CoalQuest Development LLC and the members of CoalQuest      Development LLC, effective as of June 29, 2005                                                                                                                                                                                                                                                                                                                                                               |    | (C   | )      |
|             |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 3.1    |    | Form of Second Amended and      Restated Certificate of Incorporation of International Coal Group,      Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |    | (E   | )      |
|             |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 3.2    |    | Form of Second Amended and      Restated By-laws of International Coal Group, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |    | (F   | )      |
|             |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.1    |    | Form of certificate of      International Coal Group, Inc. common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |    | (D   | )      |
|             |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.2    |    | Registration Rights Agreement by      and between International Coal Group, Inc., WLR Recovery Fund II, L.P.,      Contrarian Capital Management LLC, Värde Partners, Inc., Greenlight      Capital, Inc., and Stark Trading, Shepherd International Coal Holdings      Inc.                                                                                                                                                                                                                                                                                                                                                                                                         |    | (B   | )      |
|             |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.3    |    | Form of Registration Rights      Agreement between International Coal Group, Inc. and certain former Anker      Stockholders and CoalQuest members                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |    | (C   | )      |
|             |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.4    |    | Indenture, dated June 23, 2006, by      and among ICG, the guarantors party thereto and The Bank of New York Trust      Company, N.A., as trustee relating to International Coal Group, Inc.’s      10.25% senior notes                                                                                                                                                                                                                                                                                                                                                                                                                                                             |    | (H   | )      |
|             |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.5    |    | Form of 10.25% senior note      (included in Exhibit 4.1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |    | (H   | )      |
|             |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.6    |    | Form of guarantee relating to      International Coal Group, Inc.’s 10.25% senior notes (included in Exhibit      4.1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |    | (H   | )      |
|             |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.7    |    | Indenture, dated as of July 31,      2007, among International Coal Group, Inc., and the guarantors party      thereto and The Bank of New York Trust Company, N.A. as Trustee, relating      to International Coal Group, Inc.’s 9.00% Convertible      Notes.                                                                                                                                                                                                                                                                                                                                                                                                                     |    | (J   | )      |
|             |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.8    |    | Form of 9.00% Senior Convertible      Note (included in Exhibit 4.7)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |    | (J   | )      |
|             |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.9    |    | Form of Guarantee relating to      International Coal Group, Inc.’s 9.00% Convertible      Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |    | (J   | )      |
|             |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.10             |    | Registration Rights Agreement,      dated as of July 31, 2007, among International Coal Group, Inc., and the      guarantors party thereto and UBS Securities LLC as      purchaser.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |    | (J   | )      |
|             |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.1   |    | Second Amended and Restated Credit      Agreement, dated June 23, 2006, by and among ICG, LLC, as borrower, the      guarantors party thereto, the lenders party thereto, J.P. Morgan      Securities Inc. and UBS Securities LLC, as joint lead arrangers and joint      bookrunners, JPMorgan Chase Bank, N.A. and CIT Capital Securities LLC, as      co-syndication agents, Bank of America, N.A. and Wachovia Bank, N.A. as      co-documentation agents, JPMorgan Chase Bank, N.A. and Bank of America,      N.A. as issuing banks, UBS Loan Finance LLC, as swingline lender, and UBS      AG, Stamford Branch, as an issuing bank, administrative agent and      collateral agent |    | (H   | )      |

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Table of Contents

| Exhibit No. |    | Description                                                                                                                                                                 |    | Note   |   |
|------------------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------|--------|
| 10.2   |    | Security Agreement dated as of      September 30, 2004 among ICG, LLC and the guarantors party thereto and UBS      AG, Stamford Branch, as Collateral Agent                |    | (A     | )      |
|             |         |                                                                                                                                                                        |
| 10.3   |    | Advisory Services Agreement      effective as of October 1, 2004 between International Coal Group, LLC and      W.L. Ross & Co. LLC                                     |    | (A     | )      |
|             |         |                                                                                                                                                                        |
| 10.4   |    | Employment Agreement dated March      14, 2005 by and between Bennett K. Hatfield and International Coal Group,      Inc.                                                   |    | (A     | )      |
|             |         |                                                                                                                                                                        |
| 10.5   |    | Employment Agreement dated April      25, 2005 by and between Roger L. Nicholson and International Coal Group,      Inc.                                                    |    | (B     | )      |
|             |         |                                                                                                                                                                        |
| 10.6   |    | International Coal Group, Inc.      2005 Equity and Performance Incentive Plan                                                                                              |    | (D     | )      |
|             |         |                                                                                                                                                                        |
| 10.7   |    | International Coal Group, Inc.      2005 Equity and Performance Incentive Plan: Incentive Stock Option      Agreement                                                       |    | (D     | )      |
|             |         |                                                                                                                                                                        |
| 10.8   |    | International Coal Group, Inc.      2005 Equity and Performance Incentive Plan: Non-Qualified Stock Option      Agreement                                                   |    | (D     | )      |
|             |         |                                                                                                                                                                        |
| 10.9   |    | International Coal Group, Inc.      2005 Equity and Performance Incentive Plan: Restricted Share      Agreement                                                             |    | (D     | )      |
|             |         |                                                                                                                                                                        |
| 10.10            |    | Form of Indemnification      Agreement                                                                                                                                      |    | (D     | )      |
|             |         |                                                                                                                                                                        |
| 10.11            |    | Fee Lease between Kentucky Union      Company, lessor, and ICG Hazard, LLC (assigned from Leslie Resources,      Inc.), lessee, of Flint Ridge Surface Mine, amended    by: |    | (C     | )      |
|             |         |                                                                                                                                                                        |
|             |    | (a) Assignment of Real      Property Agreements, dated September 30, 2004, assigning to      ICG Hazard, LLC                                                 |    |   |   |
|             |         |                                                                                                                                                                        |
| 10.14            |    | Coal Lease between Knight-Ink      Heirs, lessor, and ICG Eastern, LLC (assigned from Cherry River Coal and      Coke Company), lessee, of Birch River Mine, amended    by: |    | (C     | )      |
|             |         |                                                                                                                                                                        |
|             |    | (a) Partial Assignment of      Lease, dated September 20, 1984, assigning to Twin River Coal      Co.                                                                  |    |   |   |
|             |         |                                                                                                                                                                        |
|             |    | (b) General Conveyance,      Assignment and Transfer, dated December 8, 1988, assigning to Island Creek      Coal Co.                                                  |    |   |   |
|             |         |                                                                                                                                                                        |
|             |    | (c) Assignment, dated      December 12, 1990, assigning to Laurel Run Mining    Co.                                                                                    |    |   |   |
|             |         |                                                                                                                                                                        |
|             |    | (d) Consent Letter, dated as      of October 25, 1995                                                                                                                  |    |   |   |
|             |         |                                                                                                                                                                        |
|             |    | (e) Partial Assignment, dated      October 30, 1995, assigning to East Kentucky Energy      Corp.                                                                      |    |   |   |
|             |         |                                                                                                                                                                        |
|             |    | (f) Assignment, dated October      30, 1995, assigning to East Kentucky Energy Corp.                                                                                   |    |   |   |
|             |         |                                                                                                                                                                        |
|             |    | (g) Assignment of Real      Property Agreements, dated September 30, 2004, assigning to      ICG Eastern, LLC                                                |    |   |   |

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Table of Contents

| Exhibit No. |    | Description                                                                                                                                                                                                                                                         |    | Note   |   |
|------------------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------|--------|
| 10.15            |    | Coal Lease between NGHD Lands, et. al., lessor, and ICG      Eastern, LLC (assigned from Coastal Coal-West Virginia, LLC), lessee, of Birch River      Mine, amended by:                                                                                       |    | (C     | )      |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (a) Lease and Sublease      Agreement, dated March 14, 2001                                                                                                                                                                                                    |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (b) Memorandum of Lease and      Sublease Agreement, dated June 1, 2001                                                                                                                                                                                        |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (c) Assignment of Real      Property Agreements, dated September 30, 2004, assigning to      ICG Eastern, LLC                                                                                                                                        |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
| 10.17            |    | Fee Lease between M-B, LLC,      lessor, and ICG Eastern, LLC (assigned from ANR Coal Development Company),      lessee, of Birch River Mine, amended by:                                                                                                           |    | (C     | )      |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (a) Lease and Sublease      Agreement, dated March 14, 2001                                                                                                                                                                                                    |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (b) Memorandum of Lease and      Sublease Agreement, dated June 1, 2001                                                                                                                                                                                        |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (c) Assignment of Real      Property Agreements, dated September 30, 2004, assigning to      ICG Eastern, LLC                                                                                                                                        |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
| 10.18            |    | Fee Lease between ACIN      (successor-in-interest to CSTL, LLC), lessor, and ICG Hazard, LLC      (assigned from Leslie Resources, Inc.), lessee, of County Line and Rowdy Gap Mines, amended      by:                                                        |    | (C     | )      |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (a) Assignment of Real      Property Agreements, dated September 30, 2004, assigning to      ICG Hazard, LLC                                                                                                                                         |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
| 10.19            |    | Fee Lease between Kentucky River      Properties, LLC, lessor, and ICG Hazard, LLC (assigned from Shamrock Coal      Company), lessee, of Rowdy Gap and Thunder Ridge Mines, amended      by:                                                                       |    | (C     | )      |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (a) Agreement of Assignment,      dated July 8, 1992, assigning to Ray Coal Company,    Inc.                                                                                                                                                                   |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (b) Assignment and Assumption      Agreement, dated June 30, 1994, assigning to Ikerd-Bandy,      Co.                                                                                                                                                          |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (c) Assignment of Real      Property Agreements, dated September 30, 2004, assigning to      ICG Hazard, LLC                                                                                                                                         |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
| 10.20            |    | Lease between Allegany Coal and      Land Company, lessor, and Patriot Mining Company, Inc., lessee, of      Allegany County, Maryland Mine, including:                                                                                                             |    | (C     | )      |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (a) Amendment 1, dated and      effective June 7, 1999                                                                                                                                                                                                         |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (b) Amendment 2, dated and      effective August 31, 1999                                                                                                                                                                                                      |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (c) Amendment 3, dated and      effective June 1, 2000                                                                                                                                                                                                         |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (d) Amendment 4, dated and      effective June 1, 2001                                                                                                                                                                                                         |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (e) Default Letter, dated and      effective May 6, 2002                                                                                                                                                                                                       |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (f) Letter Agreement, dated      and effective May 8, 2002                                                                                                                                                                                                     |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
| 10.21            |    | Lease between The Crab Orchard      Coal and Land Company, lessor, and Wolf Run Mining Company (f/k/a Anker      West Virginia Mining Company), ICG Beckley, LLC (successor-in-interest to      Winding Gulf Coals, Inc.), lessee, of Beckley Mine,      including: |    | (C     | )      |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (a) Modification and      Amendment, dated and effective December 28, 1970                                                                                                                                                                                     |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (b) Second Modification and      Amendment, dated and effective August 22, 1974                                                                                                                                                                                |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (c) Agreement and Partial      Surrender and Release, dated and effective October 13,      1980                                                                                                                                                                |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (d) Amendment, dated and      effective January 1, 1983                                                                                                                                                                                                        |    |   |   |
|             |         |                                                                                                                                                                                                                                                                |
|             |    | (e) Amendment, dated and      effective January 1, 1986                                                                                                                                                                                                        |    |   |   |

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Table of Contents

| Exhibit No. |    | Description                                                                                                                                                                                                                              |    | Note   |   |
|------------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------|--------|
|             |    | (f) Amendment, dated and      effective January 1, 1991                                                                                                                                                                             |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (g) Agreement of Consent,      dated and effective October 27, 1994                                                                                                                                                                 |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (h) Acceptance by Pine Valley      Coal Company, Inc., dated and effective October 31,      1994                                                                                                                                    |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (i) Instrument of Assignment,      dated October 28, 1994, effective October 31, 1994                                                                                                                                               |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (j) Amendment, dated and      effective October 31, 1994                                                                                                                                                                            |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
| 10.22            |    | Lease between Beaver Coal      Corporation, lessor, and Wolf Run Mining Company (f/k/a Anker West      Virginia Mining Company), ICG Beckley, LLC (successor-in-interest to New      River Company), lessee, of Beckley Mine, including: |    | (C     | )      |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (a) Amendment, dated and      effective August 1, 1975                                                                                                                                                                              |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (b) Amendment, dated and      effective August 1, 1986                                                                                                                                                                              |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (c) Amendment, dated and      effective August 1, 1991                                                                                                                                                                         |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (d) Acceptance by Pine Valley      Coal Company, Inc., dated and effective October 31,      1994                                                                                                                                    |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (e) Agreement of Consent,      dated and effective October 28, 1994                                                                                                                                                                 |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (f) Instrument of Assignment,      dated October 28, 1994 and effective October 31,    1994                                                                                                                                         |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (g) Option to Lease, dated      April 1, 1995                                                                                                                                                                                       |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
| 10.23            |    | Lease between Douglas Coal      Company, lessor, and Vindex Energy Corp. (assigned from Patriot Mining      Company, Inc.), lessee, of Island and Douglas Mine,      including:                                                          |    | (C     | )      |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (a) Option to Lease, dated      May 27, 1994                                                                                                                                                                                        |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (b) Guarantee, dated and      effective May 1994                                                                                                                                                                                    |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (c) Memorandum of Lease,      dated and effective September 21, 1995                                                                                                                                                                |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (d) Assignment, dated June      17, 2006                                                                                                                                                                                            |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
| 10.25            |    | Sublease between Reserve Coal      Properties, sublessors, and Patriot Mining Company, sublessee, of Sycamore      No. 2 Mine                                                                                                            |    | (C     | )      |
|             |         |                                                                                                                                                                                                                                     |
| 10.27            |    | Contract for Sale and Purchase of      Coal dated July 1, 1980, between City of Springfield, Illinois and, ICG      Illinois, LLC (assigned from Turis Coal Company), amended      by:                                                   |    | (B     | )      |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (a) Amendment dated March 4,      1986, effective January 1, 1986                                                                                                                                                                   |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (b) Second Amendment dated      April 22, 1986, effective January 1, 1986                                                                                                                                                           |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (c) Modification dated and      effective June 8, 1987                                                                                                                                                                              |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (d) Modification dated and      effective November 4, 1988                                                                                                                                                                          |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (e) Amendment dated and      effective January 1, 1989                                                                                                                                                                              |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (f) Amendment dated March 20,      1992, effective January 1, 1992                                                                                                                                                                  |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (g) Amendment dated March 21,      1995, effective January 1, 1995                                                                                                                                                                  |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (h) Amendment dated May 10,      1996, effective May 1, 1996                                                                                                                                                                        |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (i) Amendment dated August      20, 1998, effective January 1, 1998                                                                                                                                                                 |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (j) Amendment dated May 30,      2001, effective January 1, 2001                                                                                                                                                                    |    |   |   |
|             |         |                                                                                                                                                                                                                                     |
|             |    | (k) Letter dated October 8,      2004 assigning to ICG Illinois, LLC                                                                                                                                                                |    |   |   |

----

Table of Contents

| Exhibit No.             |    | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |    | Note   |   |
|------------------------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------|--------|
| 10.28‡                 |    | Coal Supply Agreement, dated as of      April 1, 1992, between Hunter Ridge Coal Company (f/k/a Anker Energy      Corporation) and Logan Generating Company (formerly Keystone Energy      Service Company, L.P.), amended by:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |    | (G     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                         |    | (a) First Amendment,      effective as of September 1, 1995                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |    |   |   |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                         |    | (b) Second Amendment,      effective as of March 15, 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |   |   |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                         |    | (c) Third Amendment,      effective as of October 31, 2004                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |    |   |   |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                         |    | (d) Coal Price Adjustment      Agreement, effective as of October 31, 2004                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |    |   |   |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.29‡                 |    | Coal Sales Agreement, dated as of      February 17, 2006, between Wolf Run Mining Company (f/k/a Anker      West      Virginia Mining      Company, Inc.) and Allegheny Energy Supply Company, LLC and Monongahela      Power Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |    | (G     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.30              |    | Amendment No. 1 to the Second      Amended and Restated Credit Agreement, dated as of January 31, 2007, among      ICG, LLC, as borrower, International Coal Group, Inc. and certain of its      subsidiaries as guarantors, the lenders party thereto, J.P. Morgan Chase      Securities Inc. and UBS Securities LLC, as joint lead arrangers and joint      bookrunners, JPMorgan Chase Bank, N.A. and CIT Capital USA Inc., as      co-syndication agents, Bank of America, N.A. and Wachovia Bank, N.A., as      co-documentation agents, JPMorgan Chase Bank and Bank of America, N.A., as      issuing banks, UBS Loan Finance LLC, as swingline lender, and UBS AG,      Stamford Branch, as issuing bank, as administrative agent and as      collateral agent for the lenders                 |    | (I     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.31              |         | Amendment No. 3 to the Second      Amended and Restated Credit Agreement, dated as of February 20, 2009,      among ICG, LLC, as borrower, International Coal Group, Inc. and certain of      its subsidiaries as guarantors, the lenders party thereto, J.P. Morgan      Chase Securities Inc. and UBS Securities LLC, as joint lead arrangers and      joint bookrunners, JPMorgan Chase Bank, N.A. and CIT Capital USA Inc., as      co-syndication agents, Bank of America, N.A. and Wachovia Bank, N.A., as      co-documentation agents, JPMorgan Chase Bank and Bank of America, N.A., as      issuing banks, UBS Loan Finance LLC, as swingline lender, and UBS AG,      Stamford Branch, as issuing bank, as administrative agent and as      collateral agent for the lenders                |         | (N     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |         |   |   |
| 10.32              |    | International Coal Group, Inc.      Executive Severance Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |    | (I     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.33              |    | International Coal Group Inc.      Director Compensation Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |    | (I     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.34‡                 |    | Coal Lease Agreement Between      Tygart Resources, Inc. and Pittsburgh Ligionier, Inc., Lessors and Rocking      Chair Energy Company, LLC, Lessees, including (a) Assignment and      Consent Agreement dated March 28, 2007 by and between Tygart Resources,      Inc. and Pittsburgh Ligionier, Inc, Rocking Chair Energy Company, LLC, and      Wolf Run Mining Company (b) Amendment No. 1 to Lease Agreement made      effective as of April 1, 2007 by and between Tygart Resources, Inc. and      Pittsburgh Ligionier, Inc., Lessors and Rocking Chair Energy Company, LLC      and Wolf Run Mining Company (c) Corporate Guaranty of International      Coal Group, Inc. dated as of April 1, 2007                                                                           |    | (I     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.35‡                 |    | Lease and Sublease Agreement      between Penn Virginia Operating Co., LLC, lessor, and ICG Knott County,      LLC (assigned from Greymont Mining Corp.), lessee, as amended by First      Amendment to Lease and Sublease Agreement, dated November 11, 2005 and      letter agreement dated February 12, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |    | (L     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.36‡                 |    | Coal Facility Lease and Operating      Agreement, dated July 7, 2005, between Loadout LLC, lessor, and ICG Knott      County, LLC (assigned from Elk Ridge, Inc.), lessee, as amended by First      Amendment to Coal Facility Lease and Operating Agreement, dated November      11, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |    | (L     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.37              |    | International Coal Group, Inc.      Director Compensation Plan (as amended 2007)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |    | (K     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.38              |    | Second Amendment and Limited      Waiver to the Second Amended and Restated Credit Agreement, dated as of      July 31, 2007, among ICG, LLC, as borrower, International Coal Group, Inc.      and certain of its subsidiaries as guarantors, the lenders party thereto,      J.P. Morgan Chase Securities Inc. and UBS Securities LLC, as joint lead      arrangers and joint bookrunners, JPMorgan Chase Bank, N.A. and CIT Capital      USA Inc., as co-syndication agents, Bank of America, N.A. and Wachovia      Bank, N.A., as co-documentation agents, JPMorgan Chase Bank and Bank of      America, N.A. as issuing banks, UBS Loan Finance LLC, as swingline lender,      and UBS AG, Stamford Branch, as issuing bank, as administrative agent and      as collateral agent for the lenders |    | (J     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.39‡                 |         | Amended and Restated Coal Lease      dated as of May 27, 2008 by and between Dulcet Acquisition LLC, as lessor,      and Powdul Acquisition LLC, as lessee                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |         | (M     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |         |   |
| 10.40              |    | Form of Non-Employee      Director Restricted Share Unit Agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |    | (O     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |         |   |
| 11.1     |    | Statement regarding Computation of      Earnings Per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |    | (O     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 21.1     |    | List of      Subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |    | (O     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 23.1     |    | Consent of Deloitte & Touche,      LLP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |    | (O     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 24.1     |    | Power of attorney, dated February      27, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |    | (O     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 31.1     |    | Certification of the Chief      Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |    | (O     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 31.2     |    | Certification of the Principal      Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |    | (O     | )      |
|                         |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 32.1     |    | Certification Pursuant to § 906 of      the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |    | (O     | )      |

----

Table of Contents

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| (A)     | Previously filed as an exhibit to      International Coal Group, Inc.’s Registration Statement on Form S-1 (Reg.      No. 333-124393), filed on April 28, 2005 and incorporated herein      by reference.                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B)     | Previously filed as an exhibit to      Amendment No. 1 to International Coal Group, Inc.’s Registration      Statement on Form S-1 (Reg. No. 333-124393), filed on June 15,      2005 and incorporated herein by reference.           |
| (C)     | Previously filed as an exhibit to      Amendment No. 2 to International Coal Group, Inc.’s Registration      Statement on Form S-1 (Reg. No. 333-124393), filed on June 30,      2005 and incorporated herein by reference.           |
| (D)     | Previously filed as an exhibit to      Amendment No. 3 to International Coal Group, Inc.’s Registration      Statement on Form S-1 (Reg. No. 333-124393), filed on      September 28, 2005 and incorporated herein by      reference. |
| (E)     | Previously filed as an exhibit to      Amendment No. 4 to International Coal Group, Inc.’s Registration      Statement on Form S-1 (Reg. No. 333-124393), filed on      October 24, 2005 and incorporated herein by      reference.   |
| (F)     | Previously filed as an exhibit to      Amendment No. 5 to International Coal Group, Inc.’s Registration      Statement on Form S-1 (Reg. No. 333-124393), filed on      November 9, 2005 and incorporated herein by      reference.   |
| (G)     | Previously filed as an exhibit to      Amendment No. 6 to International Coal Group, Inc.’s Registration      Statement on Form S-1 (Reg. No. 333-124393), filed on      November 14, 2005 and incorporated herein by      reference.  |
| (H)     | Previously filed as an exhibit to      International Coal Group, Inc.’s Current Report on Form 8-K, filed on      June 26, 2006 and incorporated herein by      reference.                                                                      |
| (I)     | Previously filed as an exhibit to      International Coal Group, Inc.’s Annual Report on Form 10-K for the year      ended December 31, 2006, filed on March 1, 2007, and      incorporated herein by reference.                           |
| (J)     | Previously filed as an exhibit to      International Coal Group, Inc.’s Current Report on Form 8-K, filed on      July 31, 2007, and incorporated herein by      reference.                                                                     |
| (K)     | Previously filed as an exhibit to      International Coal Group, Inc.’s Quarterly Report on Form 10-Q for the      quarter ended March 31, 2007, filed on May 8, 2007, and      incorporated herein by reference.                          |
| (L)     | Previously filed as an exhibit to      International Coal Group, Inc.’s Annual Report on Form 10-K for the year      ended December 31, 2007, filed on February 29, 2008 and incorporated      herein by reference.                                  |
| (M)     | Previously filed as an exhibit to      International Coal Group Inc.’s Quarterly Report on Form 10-Q for the      quarter ended June 30, 2008, filed on August 8, 2008, and incorporated      herein by reference.                                   |
| (N)     | Previously filed as an exhibit to      International Coal Group Inc.’s Current Report of Form 8-K, filed on      February 23, 2009, and incorporated herein by      reference.                                                                       |
| (O)     | Filed    herewith.                                                                                                                                                                                                                                         |
| ‡ | Confidential treatment requested      as to certain portions that have been omitted and filed separately with      the Securities and ExchangeCommission.                                                                                                  |