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

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

|                                              |   |                        |
|---------------------------------------------------|--------|-----------------------------|
| Delaware                                          |   | 02-0733940                  |
| (State      or other jurisdiction of              |   | (I.R.S.      Employer       |
| incorporation      or organization)               |   | Identification      Number) |
|                                              |   |                        |
| One      Alpha Place, P.O. Box 2345, Abingdon, VA |   | 24212                       |
| (Address      of principal executive offices)     |   | (Zip      Code)             |

----

Table of Contents

TABLE OF CONTENTS

|                                                                                                               |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|                                                                                                               |   | Page   |   |   |
| PART      I                                                                                                        |   |   |   |   |
|                                                                                                               |   |   |   |   |
| Item 1. Financial Statements                                                                                  |   |   |   |   |
| Condensed      Consolidated Statements of Income (Unaudited)                                                       |   | 2      |   |   |
| Condensed      Consolidated Balance Sheets (Unaudited)                                                             |   | 3      |   |   |
| Condensed      Consolidated Statements of Cash Flows    (Unaudited)                                                |   | 4      |   |   |
| Notes to      Condensed Consolidated Financial Statements      (Unaudited)                                         |   | 6      |   |   |
| Item 2.      Management’s Discussion and Analysis of Financial Condition and Results of      Operations |   | 18     |   |   |
| Item 3.      Quantitative and Qualitative Disclosures about Market      Risk                                  |   | 32     |   |   |
| Item 4.      Controls and Procedures                                                                          |   | 33     |   |   |
|                                                                                                               |   |   |   |   |
| PART      II                                                                                                       |   |   |   |   |
|                                                                                                               |   |   |   |   |
| Item 1.      Legal Proceedings                                                                                |   | 34     |   |   |
| Item 1A. Risk Factors                                                                                         |   | 34     |   |   |
| Item 6.      Exhibits                                                                                         |   | 34     |   |   |
| Signature                                                                                                          |   | 35     |   |   |
|                                                                                                               |
| EXHIBIT INDEX                                                                                                      |
| EX-12.1:      Computation of Ratio of Earnings to Fixed    Charges                                                 |
| EX-12.2:      Computation of Other Ratios                                                                          |
| EX-31.A:      Certification                                                                                        |
| EX-31.B:      Certification                                                                                        |
| EX-32.A:      Certification                                                                                        |
| EX-32.B:      Certification                                                                                        |

----

Table of Contents

Item 1. FinancialStatements

|                                                                             |   |                    |    |   |                   |   |    |   |   |   |      |   |
|----------------------------------------------------------------------------------|--------|-------------------------|---------|--------|------------------------|--------|---------|--------|--------|--------|-----------|--------|
| ALPHA NATURAL RESOURCES, INC. AND SUBSIDIARIES                                   |   |
| Condensed      Consolidated Statements of Income (Unaudited)                     |   |
| (In      thousands, except share and per share amounts)                          |   |
|                                                                             |   |                    |    |   |                   |   |    |   |   |   |      |   |
|                                                                             |   | Three      Months Ended |    |   | Nine      Months Ended |   |
|                                                                             |   | September      30,      |    |   | September      30,     |   |
|                                                                             |   | 2008                    |    |   | 2007                   |   |    | 2008   |   |   | 2007      |   |
|                                                                             |   |                    |    |   |                   |   |    |   |   |   |      |   |
| Revenues:                                                                        |   |                    |    |   |                   |   |    |   |   |   |      |   |
| Coal      revenues                                                               |   | $                       | 622,960 |   |                   | $      | 440,866 |   |   | $      | 1,700,515 |   |   | $ | 1,208,228 |   |
| Freight      and handling revenues                                               |   |                    | 75,709  |   |                   |   | 58,384  |   |   |   | 220,896   |   |   |   | 143,183 |   |
| Other      revenues                                                              |   |                    | 16,317  |   |                   |   | 10,137  |   |   |   | 38,878    |   |   |   | 23,915 |   |
| Total      revenues                                                              |   |                    | 714,986 |   |                   |   | 509,387 |   |   |   | 1,960,289 |   |   |   | 1,375,326 |   |
| Costs      and expenses:                                                         |   |                    |    |   |                   |   |    |   |   |   |      |   |   |   |   |   |
| Cost      of coal sales (exclusive of items shown separately below)              |   |                    | 467,185 |   |                   |   | 365,366 |   |   |   | 1,291,820 |   |   |   | 1,000,568 |   |
| Gain      on sale of coal reserves                                               |   |                    | (11,446 | )      |                   |   | -       |   |   |   | (11,446   | )      |   |   | - |   |
| (Increase)      decrease in fair value of derivative instruments, net            |   |                    | 34,294  |   |                   |   | (1,413  | )      |   |   | 11,094    |   |   |   | (2,252 | ) |
| Freight      and handling costs                                                  |   |                    | 75,709  |   |                   |   | 58,384  |   |   |   | 220,896   |   |   |   | 143,183 |   |
| Cost      of other revenues                                                      |   |                    | 11,779  |   |                   |   | 7,132   |   |   |   | 28,679    |   |   |   | 16,189 |   |
| Depreciation,      depletion and amortization                                    |   |                    | 41,946  |   |                   |   | 43,924  |   |   |   | 130,759   |   |   |   | 117,567 |   |
| Selling,      general and administrative expenses                                |   |                    |    |   |                   |   |    |   |   |   |      |   |   |   |   |   |
| (exclusive      of depreciation and amortization shown separately above)         |   |                    | 20,936  |   |                   |   | 14,436  |   |   |   | 56,962    |   |   |   | 41,597 |   |
| Total      costs and expenses                                                    |   |                    | 640,403 |   |                   |   | 487,829 |   |   |   | 1,728,764 |   |   |   | 1,316,852 |   |
|                                                                             |   |                    |    |   |                   |   |    |   |   |   |      |   |   |   |   |   |
| Income      from operations                                                      |   |                    | 74,583  |   |                   |   | 21,558  |   |   |   | 231,525   |   |   |   | 58,474 |   |
| Other      income (expense):                                                     |   |                    |    |   |                   |   |    |   |   |   |      |   |   |   |   |   |
| Interest      expense                                                            |   |                    | (6,995  | )      |                   |   | (10,171 | )      |   |   | (33,594   | )      |   |   | (30,214 | ) |
| Interest      income                                                             |   |                    | 2,725   |   |                   |   | 249     |   |   |   | 5,702     |   |   |   | 1,343 |   |
| Loss      on early extinguishment of debt                                        |   |                    | (33     | )      |                   |   | -       |   |   |   | (14,702   | )      |   |   | - |   |
| Miscellaneous      income, net                                                   |   |                    | 481     |   |                   |   | 281     |   |   |   | 483       |   |   |   | 835 |   |
| Total      other income (expense), net                                           |   |                    | (3,822  | )      |                   |   | (9,641  | )      |   |   | (42,111   | )      |   |   | (28,036 | ) |
| Income      from continuing operations before income taxes                       |   |                    | 70,761  |   |                   |   | 11,917  |   |   |   | 189,414   |   |   |   | 30,438 |   |
| Income      tax expense                                                          |   |                    | (5,895  | )      |                   |   | (2,484  | )      |   |   | (22,930   | )      |   |   | (6,875 | ) |
| Income      from continuing operations                                           |   |                    | 64,866  |   |                   |   | 9,433   |   |   |   | 166,484   |   |   |   | 23,563 |   |
|                                                                             |   |                    |    |   |                   |   |    |   |   |   |      |   |   |   |   |   |
| Discontinued      operations (Note 16)                                           |   |                    |    |   |                   |   |    |   |   |   |      |   |   |   |   |   |
| Loss      from discontinued operations                                           |   |                    | (4,916  | )      |                   |   | (673    | )      |   |   | (8,273    | )      |   |   | (2,053 | ) |
| Minority      interest on the loss from discontinued operations                  |   |                    | 289     |   |                   |   | 68      |   |   |   | 490       |   |   |   | 155 |   |
| Gain      on sale of discontinued operations                                     |   |                    | 13,635  |   |                   |   | -       |   |   |   | 13,635    |   |   |   | - |   |
| Income      tax (expense) benefit                                                |   |                    | (4,011  | )      |                   |   | 121     |   |   |   | (2,606    | )      |   |   | 380 |   |
| Income      (loss) from discontinued operations                                  |   |                    | 4,997   |   |                   |   | (484    | )      |   |   | 3,246     |   |   |   | (1,518 | ) |
| Net      income                                                                  |   | $                       | 69,863  |   |                   | $      | 8,949   |   |   | $      | 169,730   |   |   | $ | 22,045 |   |
|                                                                             |   |                    |    |   |                   |   |    |   |   |   |      |   |   |   |   |   |
| Basic      earnings per share:                                                   |   |                    |    |   |                   |   |    |   |   |   |      |   |   |   |   |   |
| Income      from continuing operations                                           |   | $                       | 0.93    |   |                   | $      | 0.15    |   |   | $      | 2.44      |   |   | $ | 0.36 |   |
| Income      (loss) from discontinued operations                                  |   |                    | 0.07    |   |                   |   | (0.01   | )      |   |   | 0.05      |   |   |   | (0.02 | ) |
| Net      income                                                                  |   | $                       | 1.00    |   |                   | $      | 0.14    |   |   | $      | 2.49      |   |   | $ | 0.34 |   |
|                                                                             |   |                    |    |   |                   |   |    |   |   |   |      |   |   |   |   |   |
| Diluted      earnings per share:                                                 |   |                    |    |   |                   |   |    |   |   |   |      |   |   |   |   |   |
| Income      from continuing operations                                           |   | $                       | 0.90    |   |                   | $      | 0.15    |   |   | $      | 2.38      |   |   | $ | 0.36 |   |
| Income      (loss) from discontinued operations                                  |   |                    | 0.07    |   |                   |   | (0.01   | )      |   |   | 0.05      |   |   |   | (0.02 | ) |
| Net      income                                                                  |   | $                       | 0.97    |   |                   | $      | 0.14    |   |   | $      | 2.43      |   |   | $ | 0.34 |   |
|                                                                             |   |                    |    |   |                   |   |    |   |   |   |      |   |   |   |   |   |
| See      accompanying notes to condensed consolidated financial      statements. |   |                    |    |   |                   |   |    |   |   |   |      |   |   |
|                                                                             |   |                    |    |   |                   |   |    |   |   |   |      |   |   |   |   |   |

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Table of Contents

|                                                                             |   |               |      |   |              |   |
|----------------------------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
| ALPHA NATURAL RESOURCES, INC. AND SUBSIDIARIES                                   |   |
| Condensed      Consolidated  Balance Sheets (Unaudited)                |   |
| (In      thousands, except share and per share amounts)                          |   |
|                                                                             |   |               |      |   |              |   |
|                                                                             |   | September      30, |      |   | December      31, |   |
|                                                                             |   | 2008               |      |   | 2007              |   |
| Assets                                                                           |   |               |      |   |              |   |
| Current      assets:                                                             |   |               |      |   |              |   |
| Cash      and cash equivalents                                                   |   | $                  | 560,134   |   |              | $      | 54,365 |   |
| Trade      accounts receivable, net                                              |   |               | 231,007   |   |              |   | 183,969 |   |
| Notes      and other receivables                                                 |   |               | 15,349    |   |              |   | 11,141 |   |
|         Inventories                                                    |   |               | 83,822    |   |              |   | 70,780 |   |
| Deferred      income taxes                                                       |   |               | 22,525    |   |              |   | - |   |
| Prepaid      expenses and other current assets                                   |   |               | 63,089    |   |              |   | 59,954 |   |
| Total      current assets                                                        |   |               | 975,926   |   |              |   | 380,209 |   |
| Property,      plant, and equipment, net                                         |   |               | 587,631   |   |              |   | 640,258 |   |
| Goodwill                                                                         |   |               | 20,547    |   |              |   | 20,547 |   |
| Other      intangibles, net                                                      |   |               | 4,394     |   |              |   | 9,376 |   |
| Deferred      income taxes                                                       |   |               | 77,100    |   |              |   | 97,130 |   |
| Other      assets                                                                |   |               | 59,715    |   |              |   | 63,394 |   |
| Total      assets                                                                |   | $                  | 1,725,313 |   |              | $      | 1,210,914 |   |
| Liabilities      and Stockholders' Equity                                        |   |               |      |   |              |   |   |   |
| Current      liabilities:                                                        |   |               |      |   |              |   |   |   |
| Current      portion of long-term debt                                           |   | $                  | 284       |   |              | $      | 2,579 |   |
|        Note payable                                                         |   |               | -         |   |              |   | 18,883 |   |
| Trade      accounts payable                                                      |   |               | 129,399   |   |              |   | 95,749 |   |
| Deferred      income taxes                                                       |   |               | -         |   |              |   | 9,753 |   |
| Accrued      expenses and other current liabilities                              |   |               | 147,637   |   |              |   | 96,098 |   |
| Total      current liabilities                                                   |   |               | 277,320   |   |              |   | 223,062 |   |
|                                                                             |   |               |      |   |              |   |   |   |
| Long-term      debt, net of current portion                                      |   |               | 520,625   |   |              |   | 425,451 |   |
| Workers’      compensation benefit obligations                             |   |               | 9,416     |   |              |   | 9,055 |   |
| Postretirement      medical benefit obligations                                  |   |               | 58,663    |   |              |   | 53,811 |   |
| Asset      retirement obligation                                                 |   |               | 85,353    |   |              |   | 83,020 |   |
| Deferred      gains on sale of property interests                                |   |               | 2,581     |   |              |   | 3,176 |   |
| Other      liabilities                                                           |   |               | 32,621    |   |              |   | 30,930 |   |
| Total      liabilities                                                           |   |               | 986,579   |   |              |   | 828,505 |   |
|                                                                             |   |               |      |   |              |   |   |   |
| Minority      Interest                                                           |   |               | -         |   |              |   | 1,573 |   |
| Commitments      and contingencies                                               |   |               |      |   |              |   |   |   |
| Stockholders'      equity:                                                       |   |               |      |   |              |   |   |   |
| Preferred      stock - par value $0.01, 10,000,000 shares                        |   |               |      |   |              |   |   |   |
| authorized,      none issued                                                     |   |               | -         |   |              |   | - |   |
| Common      stock - par value $0.01, 100,000,000 shares                          |   |               |      |   |              |   |   |   |
| authorized,      70,495,814 and      65,769,303 shares issued and outstanding    |   |               |      |   |              |   |   |   |
| at      September 30, 2008 and December 31, 2007, respectively                   |   |               | 705       |   |              |   | 658 |   |
| Additional      paid-in capital                                                  |   |               | 413,477   |   |              |   | 227,336 |   |
| Accumulated      other comprehensive loss                                        |   |               | (20,310   | )      |              |   | (22,290 | ) |
| Retained      earnings                                                           |   |               | 344,862   |   |              |   | 175,132 |   |
| Total      stockholders' equity                                                  |   |               | 738,734   |   |              |   | 380,836 |   |
| Total      liabilities and stockholders' equity                                  |   | $                  | 1,725,313 |   |              | $      | 1,210,914 |   |
|                                                                             |   |               |      |   |              |   |   |   |
| See      accompanying notes to condensed consolidated financial      statements. |   |               |      |   |              |   |   |   |
|                                                                             |   |               |      |   |              |   |   |   |

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Table of Contents

|                                                             |   |                   |    |   |   |   |
|------------------------------------------------------------------|--------|------------------------|---------|--------|--------|--------|
| ALPHA NATURAL RESOURCES, INC. AND SUBSIDIARIES                   |   |
| Condensed      Consolidated Statements of Cash Flows (Unaudited) |   |
| (In      thousands)                                              |   |
|                                                             |   |                   |    |   |   |   |
|                                                             |   |                   |    |   |   |   |
|                                                             |   | Nine      Months Ended |    |
|                                                             |   | September      30,     |    |
|                                                             |   | 2008                   |    |   | 2007   |   |
|                                                             |   |                   |    |   |   |   |
| Operating      activities:                                       |   |                   |    |   |   |   |
| Net      income                                                  |   | $                      | 169,730 |   |   | $      | 22,045 |   |
| Adjustments      to reconcile net income                         |   |                   |    |   |   |   |   |   |
| to      net cash provided by operating                           |   |                   |    |   |   |   |   |   |
| activities:                                                      |   |                   |    |   |   |   |   |   |
| Depreciation,      depletion and amortization                    |   |                   | 131,366 |   |   |   | 117,570 |   |
| Loss      on early extinguishment of debt                        |   |                   | 14,702  |   |   |   | - |   |
| Amortization      of debt issuance costs                         |   |                   | 11,464  |   |   |   | 1,725 |   |
| Accretion      of asset retirement obligation                    |   |                   | 5,553   |   |   |   | 4,960 |   |
| Share-based      compensation                                    |   |                   | 15,873  |   |   |   | 6,747 |   |
| Amortization      of deferred gains on sales                     |   |                   |    |   |   |   |   |   |
| of      property interests                                       |   |                   | (595    | )      |   |   | (707 | ) |
| Gain      on sale of discontinued operations                     |   |                   | (13,635 | )      |   |   | - |   |
| Gain      on sale of fixed assets and investments                |   |                   | (2,171  | )      |   |   | (2,200 | ) |
| Gain      on sale of coal reserves                               |   |                   | (11,446 | )      |   |   | - |   |
| Minority      interest                                           |   |                   | (490    | )      |   |   | (155 | ) |
| Change      in fair value of derivative instruments              |   |                   | 11,094  |   |   |   | (2,252 | ) |
| Deferred      income tax benefit                                 |   |                   | (13,501 | )      |   |   | (2,211 | ) |
| Other                                                            |   |                   | 21      |   |   |   | 1,462 |   |
| Changes      in operating assets and liabilities:                |   |                   |    |   |   |   |   |   |
| Trade      accounts receivable                                   |   |                   | (47,659 | )      |   |   | (23,562 | ) |
| Notes      and other receivables                                 |   |                   | (6,242  | )      |   |   | (1,429 | ) |
| Inventories                                                      |   |                   | (13,265 | )      |   |   | 9,605 |   |
| Prepaid      expenses and other current                          |   |                   |    |   |   |   |   |   |
| assets                                                           |   |                   | 22,353  |   |   |   | 18,376 |   |
| Other      assets                                                |   |                   | 1,332   |   |   |   | (15,787 | ) |
| Trade      accounts payable                                      |   |                   | 39,998  |   |   |   | 16,974 |   |
| Accrued      expenses and other current                          |   |                   |    |   |   |   |   |   |
| liabilities                                                      |   |                   | 19,535  |   |   |   | 4,641 |   |
| Workers’      compensation benefits                        |   |                   | 428     |   |   |   | 2,262 |   |
| Postretirement      medical benefits                             |   |                   | 6,627   |   |   |   | 6,274 |   |
| Asset      retirement obligation                                 |   |                   | (3,891  | )      |   |   | (4,915 | ) |
| Other      liabilities                                           |   |                   | (1,378  | )      |   |   | 3,829 |   |
| Net      cash provided by                                        |   |                   |    |   |   |   |   |   |
|    operating      activities                      |   | $                      | 335,803 |   |   | $      | 163,252 |   |
|                                                             |   |                   |    |   |   |   |   |   |

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|                                                                                |   |                   |     |   |   |   |
|-------------------------------------------------------------------------------------|--------|------------------------|----------|--------|--------|--------|
| ALPHA      NATURAL RESOURCES, INC. AND SUBSIDIARIES                                 |   |
| Condensed      Consolidated Statements of Cash Flows (Unaudited) -      (Continued) |   |
| (In      thousands)                                                                 |   |
|                                                                                |   |                   |     |   |   |   |
|                                                                                |   |                   |     |   |   |   |
|                                                                                |   | Nine      Months Ended |     |
|                                                                                |   | September      30,     |     |
|                                                                                |   | 2008                   |     |   | 2007   |   |
|                                                                                |   |                   |     |   |   |   |
| Investing      activities:                                                          |   |                   |     |   |   |   |
| Capital      expenditures                                                           |   | $                      | (113,632 | )      |   | $      | (101,491 | ) |
| Proceeds      from disposition of property, plant,                                  |   |                   |     |   |   |   |   |   |
| and      equipment                                                                  |   |                   | 16,241   |   |   |   | 3,734 |   |
| Investment      in and advances to investee                                         |   |                   | (164     | )      |   |   | (403 | ) |
| Proceeds      from sale of investment in coal terminal                              |   |                   | 1,500    |   |   |   | - |   |
| Proceeds      from sale of discontinued operations                                  |   |                   | 45,000   |   |   |   | - |   |
| Investment      in Dominion Terminal Facility                                       |   |                   | (2,824   | )      |   |   | - |   |
| Purchase      of acquired companies                                                 |   |                   | -        |   |   |   | (43,908 | ) |
| Deferred      acquisition cost                                                      |   |                   | (259     | )      |   |   | (612 | ) |
| Net      cash used in investing activities                                          |   | $                      | (54,138  | )      |   | $      | (142,680 | ) |
|                                                                                |   |                   |     |   |   |   |   |   |
| Financing      activities:                                                          |   |                   |     |   |   |   |   |   |
| Repayments      of note payable                                                     |   |                   | (18,883  | )      |   |   | (20,941 | ) |
| Proceeds      from issuance of convertible debt                                     |   |                   | 287,500  |   |   |   | - |   |
| Repayments      on long-term debt                                                   |   |                   | (193,921 | )      |   |   | (15,382 | ) |
| Proceeds      from issuance of long-term debt                                       |   |                   | -        |   |   |   | 21,400 |   |
| Proceeds      from issuance of common stock, net                                    |   |                   | 164,666  |   |   |   | - |   |
| Debt      issuance costs                                                            |   |                   | (10,861  | )      |   |   | - |   |
| Premium      payment on early extinguishment of debt                                |   |                   | (10,736  | )      |   |   | - |   |
| Decrease      in bank overdraft                                                     |   |                   | (160     | )      |   |   | (23,232 | ) |
| Tax      benefit from share-based compensation                                      |   |                   | 3,143    |   |   |   | - |   |
| Proceeds      from exercise of stock options                                        |   |                   | 3,356    |   |   |   | 594 |   |
| Net      cash provided by (used in)                                                 |   |                   |     |   |   |   |   |   |
|    financing      activities                                         |   | $                      | 224,104  |   |   | $      | (37,561 | ) |
| Net      increase (decrease) in cash                                                |   |                   |     |   |   |   |   |   |
|    and      cash equivalents                                         |   | $                      | 505,769  |   |   | $      | (16,989 | ) |
| Cash      and cash equivalents at beginning of period                               |   | $                      | 54,365   |   |   | $      | 33,256 |   |
| Cash      and cash equivalents at end of period                                     |   | $                      | 560,134  |   |   | $      | 16,267 |   |
|                                                                                |   |                   |     |   |   |   |   |   |
| See      accompanying notes to condensed consolidated financial      statements.    |   |                   |     |   |   |
|                                                                                |   |                   |     |   |   |   |   |   |

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ALPHA NATURAL RESOURCES, INC. AND SUBSIDIARIES

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|                                                         |   |                                  |                                                                                                 |   |                                 |   |                                                                                                       |    |   |   |                                                                                                       |   |   |   |                                                                                                       |    |
|--------------------------------------------------------------|--------|---------------------------------------|------------------------------------------------------------------------------------------------------|--------|--------------------------------------|--------|------------------------------------------------------------------------------------------------------------|---------|--------|--------|------------------------------------------------------------------------------------------------------------|--------|--------|--------|------------------------------------------------------------------------------------------------------------|---------|
|                                                         |   | Three      Months Ended September 30, |                                                                                                 |   | Nine      Months Ended September 30, |   |
|                                                         |   | 2008                                  |                                                                                                 |   | 2007                                 |   |                                                                                                       | 2008    |   |   | 2007                                                                                                       |   |
| Numerator:                                                   |   |                                  |                                                                                                 |   |                                 |   |                                                                                                       |    |   |   |                                                                                                       |   |   |   |                                                                                                       |    |
|         Income from continuing operations          |   | $                                     |             64,866                       |   |                                 | $      |                9,433            |    |   | $      |            166,484                                  |   |   | $      |              23,563                       |    |
|         Income (loss) from discontinued operations |   |                                  |               4,997            |   |                                 |   |                 (484       | )  |   |   |                3,246            |   |   |   |              (1,518                       | )  |
|         Net income                                 |   | $                                     |             69,863                       |   |                                 | $      |                8,949            |    |   | $      |            169,730                                  |   |   | $      |              22,045                       |    |
|                                                         |   |                                  |                                                                                                 |   |                                 |   |                                                                                                       |    |   |   |                                                                                                       |   |   |   |                                                                                                       |    |
| Denominator:                                                 |   |                                  |                                                                                                 |   |                                 |   |                                                                                                       |    |   |   |                                                                                                       |   |   |   |                                                                                                       |    |
|         Weighted average shares — basic      |   |                                  |      69,578,244                                                             |   |                                 |   |       64,602,414                                                             |    |   |   |       68,071,618                                                             |   |   |   |       64,590,052                                                             |    |
|         Dilutive effect of stock equivalents       |   |                                  |        2,655,325                                                  |   |                                 |   |            393,111                                  |    |   |   |         1,792,108                                                  |   |   |   |            286,975                                  |    |
|         Weighted average shares — diluted    |   |                                  |      72,233,569                                                             |   |                                 |   |       64,995,525                                                             |    |   |   |       69,863,726                                                             |   |   |   |       64,877,027                                                             |    |
|                                                         |   |                                  |                                                                                                 |   |                                 |   |                                                                                                       |    |   |   |                                                                                                       |   |   |   |                                                                                                       |    |
| Basic      earnings per share:                               |   |                                  |                                                                                                 |   |                                 |   |                                                                                                       |    |   |   |                                                                                                       |   |   |   |                                                                                                       |    |
|         Income from continuing operations          |   | $                                     |                 0.93 |   |                                 | $      |                  0.15 |    |   | $      |                  2.44 |   |   | $      |                  0.36 |    |
|         Income (loss) from discontinued operations |   |                                  |                 0.07 |   |                                 |   |                (0.01            | )       |   |   |                  0.05 |   |   |   |                (0.02            | )  |
|         Net income per basic share                 |   | $                                     |                 1.00 |   |                                 | $      |                  0.14 |    |   | $      |                  2.49 |   |   | $      |                  0.34 |    |
|                                                         |   |                                  |                                                                                                 |   |                                 |   |                                                                                                       |    |   |   |                                                                                                       |   |   |   |                                                                                                       |    |
| Diluted      earnings per share:                             |   |                                  |                                                                                                 |   |                                 |   |                                                                                                       |    |   |   |                                                                                                       |   |   |   |                                                                                                       |    |
|         Income from continuing operations          |   | $                                     |                 0.90 |   |                                 | $      |                  0.15 |    |   | $      |                  2.38 |   |   | $      |                  0.36 |    |
|         Income (loss) from discontinued operations |   |                                  |                 0.07 |   |                                 |   |                (0.01            | )  |   |   |                  0.05 |   |   |   |                (0.02            | )  |
|         Net income per diluted share               |   | $                                     |                 0.97 |   |                                 | $      |                  0.14 |    |   | $      |                  2.43 |   |   | $      |                  0.34 |    |
|                                                         |   |                                  |                                                                                                 |   |                                 |   |                                                                                                       |    |   |   |                                                                                                       |   |   |   |                                                                                                       |    |
|                                                         |   |                                  |                                                                                                 |   |                                 |   |                                                                                                       |    |   |   |                                                                                                       |   |   |   |                                                                                                       |    |

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|                                                                   |   |               |                                                                                      |   |              |    |                                                                          |   |
|------------------------------------------------------------------------|--------|--------------------|-------------------------------------------------------------------------------------------|--------|-------------------|---------|-------------------------------------------------------------------------------|--------|
|                                                                   |   | September      30, |                                                                                      |   | December      31, |    |
|                                                                   |   | 2008               |                                                                                      |   | 2007              |    |
| Raw      coal                                                          |   | $                  |               8,276 |   |              |  $ |             8,754 |   |
| Saleable      coal                                                     |   |               |             60,369            |   |              |    |           48,928            |   |
| Equipment      for resale                                              |   |               |               1,388 |   |              |    |             1,688 |   |
| Materials      and supplies                                            |   |               |             13,789            |   |              |    |           11,410            |   |
|         Total      inventories |   | $                  |             83,822            |   |              |  $ |           70,780            |   |
|                                                                   |   |               |                                                                                      |   |              |    |                                                                          |   |

|                         |   |                    |                                                                                                                                                                          |   |                   |    |                                                                                                                                                                                      |   |
|------------------------------|--------|-------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                         |   | Three      Months Ended |                                                                                                                                                                          |   | Nine      Months Ended |    |
|                         |   | September      30,      |                                                                                                                                                                          |   | September      30,     |    |
|                         |   | 2008                    |                                                                                                                                                                          |   | 2008                   |    |
| Continuing      operations   |   | $                       |                             5,895 |   |                   |  $ |                             22,930            |   |
| Discontinued      operations |   |                    |                             4,011 |   |                   |    |                               2,606 |   |
|                         |   | $                       |                             9,906 |   |                   |  $ |                             25,536            |   |
|                         |   |                    |                                                                                                                                                                          |   |                   |    |                                                                                                                                                                                      |   |

|                                              |   |                    |                                                                                                    |    |                   |    |                                                                                                    |    |   |    |                                                                                                    |    |   |    |                                                                                                    |    |
|---------------------------------------------------|--------|-------------------------|---------------------------------------------------------------------------------------------------------|---------|------------------------|---------|---------------------------------------------------------------------------------------------------------|---------|--------|---------|---------------------------------------------------------------------------------------------------------|---------|--------|---------|---------------------------------------------------------------------------------------------------------|---------|
|                                              |   | Three      Months Ended |                                                                                                    |    | Nine      Months Ended |    |
|                                              |   | September      30,      |                                                                                                    |    | September      30,     |    |
|                                              |   | 2008                    |                                                                                                    |    | 2007                   |    |                                                                                                    | 2008    |   |    | 2007                                                                                                    |    |
| Federal      statutory income tax expense         |   | $                       |        24,767                                                        |    |                   |  $ |          4,148                                             |    |   |  $ |        66,295                                                        |    |   |  $ |        10,600                                                        |    |
| Increases      (reductions) in taxes due to: |   |                    |                                                                                                    |    |                   |    |                                                                                                    |    |   |    |                                                                                                    |    |   |    |                                                                                                    |    |
| Nondeductible      stock-based compensation       |   |                    |                  - |    |                   |    |                  - |    |   |    |                  - |    |   |    |             194                             |    |
| Percentage      depletion allowance               |   |                    |         (7,020                                                  | )  |                   |    |         (4,476                                                  | )  |   |    |       (14,917                                                             | )  |   |    |         (8,283                                                  | )  |
| State      taxes, net of federal tax impact       |   |                    |          1,819                                             |    |                   |    |              (22                       | )  |   |    |          5,305                                             |    |   |    |             292                             |    |
| Change      in valuation allowance                |   |                    |       (13,047                                                             | )  |                   |    |          2,623                                             |    |   |    |       (32,467                                                             | )  |   |    |          3,765                                             |    |
| Domestic      production activities deduction     |   |                    |            (700                                  | )  |                   |    |               24                  |    |   |    |         (1,964                                                  | )  |   |    |                (4            | )  |
| Change      in state rates                        |   |                    |                  - |    |                   |    |                  - |    |   |    |             247                             |    |   |    |                  - |    |
| Other,      net                                   |   |                    |                 76      |    |                   |    |             187                             |    |   |    |             431                             |    |   |    |             311                             |    |
|                                              |   |                    |                                                                                                    |    |                   |    |                                                                                                    |    |   |    |                                                                                                    |    |   |    |                                                                                                    |    |
| Income      tax expense                           |   | $                       |          5,895                                             |    |                   |  $ |          2,484                                             |    |   |  $ |        22,930                                                        |    |   |  $ |          6,875                                             |    |
|                                              |   |                    |                                                                                                    |    |                   |    |                                                                                                    |    |   |    |                                                                                                    |    |   |    |                                                                                                    |    |

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|                                                                       |   |               |                                                                                                                            |   |              |   |                                                                                                                |   |
|----------------------------------------------------------------------------|--------|--------------------|---------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|---------------------------------------------------------------------------------------------------------------------|--------|
|                                                                       |   | September      30, |                                                                                                                            |   | December      31, |   |
|                                                                       |   | 2008               |                                                                                                                            |   | 2007              |   |
| Term      loan                                                             |   | $                  |           233,125                                                             |   |              | $      | 233,125                                                                                                             |   |
| 2.375%      convertible senior notes due 2015                              |   |               |           287,500                                                             |   |              |   |                    - |   |
| 10%      senior notes due 2012                                             |   |               |                      - |   |              |   | 175,000                                                                                                             |   |
| Capital      lease obligations                                             |   |               |                  284                       |   |              |   | 705                                                                                                                 |   |
| Gallatin      loan facility                                                |   |               |                      - |   |              |   | 18,500                                                                                                              |   |
| Other                                                                      |   |               |                      - |   |              |   | 700                                                                                                                 |   |
|            Total long-term debt                   |   |               |           520,909                                                             |   |              |   | 428,030                                                                                                             |   |
|         Less current portion                                     |   |               |                  284                       |   |              |   | 2,579                                                                                                               |   |
|            Long-term debt, net of current portion |   | $                  |           520,625                                                             |   |              | $      | 425,451                                                                                                             |   |
|                                                                       |   |               |                                                                                                                            |   |              |   |                                                                                                                |   |

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|                                                              |   |   |                                                                   |    |
|-------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------|---------|
| Total      asset retirement obligation at December 31, 2007  |   | $      |        91,199                       |    |
|          Accretion for the period                  |   |   |          5,553            |    |
|          Expenditures for the period               |   |   |         (3,891                 | )  |
|          Sites added during the period             |   |   |          1,577            |    |
|          Sites disposed during the period          |   |   |            (618 | )  |
|          Revisions in estimated cash flows         |   |   |            (153 | )  |
| Total      asset retirement obligation at September 30, 2008 |   | $      |        93,667                       |    |
|                                                              |   |   |                                                                   |    |

|                                            |                                        |    |      |                                                        |              |                                                                   |
|-------------------------------------------------|---------------------------------------------|---------|-----------|-------------------------------------------------------------|-------------------|------------------------------------------------------------------------|
|                                            |                                        |    |      |                                                        |              | Weighted-                                                              |
|                                            |                                        |    | Weighted- |                                                        | Average           |
|                                            |                                        |    | Average   |                                                        | Remaining         |
|                                            | Number      of                              |    | Exercise  |                                                        | Contract          |
|                                            | Shares                                      |    | Price     |                                                        | Life      (Years) |
| Outstanding      at December 31, 2007      |      744,692       |    | $         |          17.51 |              |                                                                   |
|           Exercised         |     (194,785            | )  |      |          17.23 |              |                                                                   |
|           Forfeited/Expired |       (11,857 | )  |      |          14.84 |              |                                                                   |
| Outstanding      at September 30, 2008          |      538,050       |    |      |          17.68 |              |            6.34 |
| Exercisable      at September 30, 2008     |      138,213       |    | $         |          20.15 |              |            6.46 |
|                                            |                                        |    |      |                                                        |              |                                                                   |

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|                                                          |                                        |    |            |                                                        |   |
|---------------------------------------------------------------|---------------------------------------------|---------|-----------------|-------------------------------------------------------------|--------|
|                                                          |                                        |    | Weighted-       |                                                        |
|                                                          |                                        |    | Average         |                                                        |
|                                                          | Number      of                              |    | Grant      Date |                                                        |
|                                                          | Shares                                      |    | Fair      Value |                                                        |
| Non-vested      shares outstanding at December 31, 2007  |      880,232       |    | $               |          15.93 |   |
|       Granted                   |      406,225       |    |            |          34.01 |   |
|       Vested                    |     (314,689            | )  |            |          26.88 |   |
|       Forfeited/Expired         |       (15,656 | )  |            |          19.47 |   |
| Non-vested      shares outstanding at September 30, 2008 |      956,112       |    | $               |          19.33 |   |
|                                                          |                                        |    |            |                                                        |   |

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|   | Level      1 - Quoted prices in active markets for identical assets or      liabilities; |
|--------|------------------------------------------------------------------------------------------|

|   | Level      2 - Quoted prices for similar instruments in active markets; quoted prices      for identical or similar instruments in markets that are not active;      and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level      3 - Unobservable inputs in which there is little or no market data which      require the reporting entity to develop its own    assumptions. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                            |                          |   |            |   |   |           |                                |           |           |   |        |           |   |         |    |
|-------------------------------------------------|-------------------------------|--------|-----------------|--------|--------|----------------|-------------------------------------|----------------|----------------|--------|-------------|----------------|--------|--------------|---------|
|                                            | As      of September 30, 2008 |   |
|                                            |                          |   |            |   |   |           | Fair      Value Measurements Using: |           |
|                                            |                          |   |            |   |   |           |                                | Quoted         |           |   | Significant |           |   |         |    |
|                                            |                          |   |            |   |   |           |                                | Prices      in |           |   | Other       |           |   | Significant  |    |
|                                            |                          |   |            |   |   |           |                                | Active         |           |   | Observable  |           |   | Unobservable |    |
|                                            | Carrying                      |   | Total      Fair |   |   | Markets        |                                |           | Inputs         |   |        | Inputs         |   |
|                                            | Amount                        |   | Value           |   |   | (Level      1) |                                |           | (Level      2) |   |        | (Level      3) |   |
|                                            | (In      thousands)           |   |            |   |   |           |                                |           |           |   |        |           |   |
| Financial      Assets (Liabilities):            |                          |   |            |   |   |           |                                |           |           |   |        |           |   |         |    |
|          Forward coal sales      |                          | $      | (29,071         | )      |   | $              | (29,071                             | )              |           | $      | -           |           |   | $            | (29,071 | ) |   | $ | - |   |
|          Forward coal purchases  |                          | $      | 34,015          |   |   | $              | 34,015                              |           |           | $      | -           |           |   | $            | 34,015  |   |   | $ | - |   |
|          Diesel fuel derivatives |                          | $      | (5,668          | )      |   | $              | (5,668                              | )              |           | $      | -           |           |   | $            | (5,668  | ) |   | $ | - |   |
|          Interest rate swaps     |                          | $      | (14,199         | )      |   | $              | (14,199                             | )              |           | $      | -           |           |   | $            | (14,199 | ) |   | $ | - |   |
|                                            |                          |   |            |   |   |           |                                |           |           |   |        |           |   |         |    |   |   |   |   |   |

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|                                              |   |                    |                                                                        |   |                   |   |                                                                        |   |   |   |                                                        |   |   |   |                                                        |   |
|---------------------------------------------------|--------|-------------------------|-----------------------------------------------------------------------------|--------|------------------------|--------|-----------------------------------------------------------------------------|--------|--------|--------|-------------------------------------------------------------|--------|--------|--------|-------------------------------------------------------------|--------|
|                                              |   | Three      Months Ended |                                                                        |   | Nine      Months Ended |   |
|                                              |   | September      30,      |                                                                        |   | September      30,     |   |
|                                              |   | 2008                    |                                                                        |   | 2007                   |   |                                                                        | 2008   |   |   | 2007                                                        |   |
| Service      cost                                 |   | $                       |             696 |   |                   | $      |             835 |   |   | $      |          2,082 |   |   | $      |          2,331 |   |
| Interest      cost                                |   |                    |             819 |   |                   |   |             763 |   |   |   |          2,565 |   |   |   |          2,289 |   |
| Amortization      of prior service cost           |   |                    |             545 |   |                   |   |             583 |   |   |   |          1,775 |   |   |   |          1,750 |   |
|          Net periodic benefit cost |   | $                       |          2,060                 |   |                   | $      |          2,181                 |   |   | $      |          6,422 |   |   | $      |          6,370 |   |
|                                              |   |                    |                                                                        |   |                   |   |                                                                        |   |   |   |                                                        |   |   |   |                                                        |   |

|                                                                                                                                                                   |   |                                       |   |   |   |                                      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|--------|--------|-------------------------------------------|
|                                                                                                                                                                   |   | Three      Months Ended September 30, 2008 |   |   |   | Nine      Months Ended September 30, 2008 |   |
| Net      Income                                                                                                                                                        |   | $                                          | 69,863 |   |   | $                                         | 169,730 |   |
| Change      in fair value of cash flow hedge, net of tax effect of ($289) and $540,      for the three months and nine months, respectively                            |   |                                       | (457   | )      |   |                                      | 851 |   |
| Change      in SFAS 158 adjustment related to postretirement medical, net of tax      effect of $211 and $687, for the three months and nine months,      respectively |   |                                       | 334    |   |   |                                      | 1,088 |   |
| Change      in SFAS 158 adjustment related to black lung obligations, net of tax      effect of $9 and $26, for the three months and nine months,      respectively    |   |                                       | 13     |   |   |                                      | 41 |   |
|          Total comprehensive income                                                                                                                     |   | $                                          | 69,753 |   |   | $                                         | 171,710 |   |
|                                                                                                                                                                   |   |                                       |   |   |   |                                      |   |   |

|                                                                                                     |   |   |                                                                        |   |
|----------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------|--------|
| Fair      value of cash flow hedge, net of tax effect of $3,316                                          |   | $      |        10,883                            |   |
| SFAS      158 adjustment related to postretirement medical obligations, net of tax      effect of $2,566 |   |   |          8,816                 |   |
| SFAS      158 adjustment related to black lung obligations, net of tax effect of      $188               |   |   |             611 |   |
|          Total accumulated other comprehensive loss                                       |   | $      |        20,310                            |   |
|                                                                                                     |   |   |                                                                        |   |

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|                                           |   |       |                                                                                                                                       |   |   |   |                                                                                                                                    |         |   |      |                                                                                                                                                                              |    |   |   |                                                                                                                                       |   |
|------------------------------------------------|--------|------------|--------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|--------------|--------|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                           |   |       |                                                                                                                                       |   |   |   |                                                                                                                                    |         |   | Corporate |                                                                                                                                                                              |    |   |   |                                                                                                                                       |
|                                           |   | Coal       |                                                                                                                                       |   | All    |   |                                                                                                                                    | and          |   |      |                                                                                                                                                                              |    |   |
|                                           |   | Operations |                                                                                                                                       |   | Other  |   |                                                                                                                                    | Eliminations |   |      | Consolidated                                                                                                                                                                      |    |
| Revenues                                       |   | $          |                     701,304            |   |   | $      |                  24,562                            |         |   | $         |                       (10,880                                       | )  |   | $      |                     714,986            |   |
| Depreciation,      depletion, and amortization |   |       |                       39,669 |   |   |   |                    1,874                 |         |   |      |                              403 |    |   |   |                       41,946 |   |
| EBITDA      from continuing operations         |   |       |                     121,895            |   |   |   |                  16,051                            |         |   |      |                       (20,969                                       | )  |   |   |                     116,977            |   |
| Capital      expenditures                      |   |       |                       37,950 |   |   |   |                       846 |         |   |      |                              629 |    |   |   |                       39,425 |   |
| Total      assets                              |   |       |                  1,653,331                            |   |   |   |                139,137                                       |         |   |      |                       (67,155                                       | )  |   |   |                  1,725,313                            |   |
|                                           |   |       |                                                                                                                                       |   |   |   |                                                                                                                                    |         |   |      |                                                                                                                                                                              |    |   |   |                                                                                                                                       |   |

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|                                           |   |       |                                                                                                                            |   |   |   |                                                                                                                    |         |   |      |                                                                                                                                                              |    |   |   |                                                                                                                            |   |
|------------------------------------------------|--------|------------|---------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|-------------------------------------------------------------------------------------------------------------------------|--------------|--------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|--------|
|                                           |   |       |                                                                                                                            |   |   |   |                                                                                                                    |         |   | Corporate |                                                                                                                                                              |    |   |   |                                                                                                                            |
|                                           |   | Coal       |                                                                                                                            |   | All    |   |                                                                                                                    | and          |   |      |                                                                                                                                                              |    |   |
|                                           |   | Operations |                                                                                                                            |   | Other  |   |                                                                                                                    | Eliminations |   |      | Consolidated                                                                                                                                                      |    |
| Revenues                                       |   | $          |                  1,928,532                 |   |   | $      |                  69,610            |         |   | $         |                       (37,853                       | )  |   | $      |                  1,960,289                 |   |
| Depreciation,      depletion, and amortization |   |       |                     124,972 |   |   |   |                    4,567 |         |   |      |                           1,220 |    |   |   |                     130,759 |   |
| EBITDA      from continuing operations         |   |       |                     395,376 |   |   |   |                  24,732            |         |   |      |                       (72,043                       | )  |   |   |                     348,065 |   |
| Capital      expenditures                      |   |       |                     107,928 |   |   |   |                    1,330 |         |   |      |                           1,618 |    |   |   |                     110,876 |   |
| Total      assets                              |   |       |                  1,653,331                 |   |   |   |                139,137                       |         |   |      |                       (67,155                       | )  |   |   |                  1,725,313                 |   |
|                                           |   |       |                                                                                                                            |   |   |   |                                                                                                                    |         |   |      |                                                                                                                                                              |    |   |   |                                                                                                                            |   |

|                                           |   |       |      |   |   |   |    |         |   |   |         |   |
|------------------------------------------------|--------|------------|-----------|--------|--------|--------|---------|--------------|--------|--------|--------------|--------|
|                                           |   |       |      |   |   |   |    | Corporate    |   |   |         |   |
|                                           |   | Coal       |      |   | All    |   |    | and          |   |   |         |   |
|                                           |   | Operations |      |   | Other  |   |    | Eliminations |   |   | Consolidated |   |
| Revenues                                       |   | $          | 500,857   |   |   | $      | 17,581  |         |   | $      | (9,051       | )      |   | $ | 509,387 |   |
| Depreciation,      depletion, and amortization |   |       | 41,863    |   |   |   | 1,646   |         |   |   | 415          |   |   |   | 43,924 |   |
| EBITDA      from continuing operations         |   |       | 75,914    |   |   |   | 4,286   |         |   |   | (14,437      | )      |   |   | 65,763 |   |
| Capital      expenditures                      |   |       | 20,908    |   |   |   | 17      |         |   |   | 72           |   |   |   | 20,997 |   |
| Total      assets                              |   |       | 1,305,155 |   |   |   | 120,133 |         |   |   | (253,737     | )      |   |   | 1,171,551 |   |
|                                           |   |       |      |   |   |   |    |         |   |   |         |   |   |   |   |   |

|                                           |   |       |                                                                                             |   |   |   |                                                                                                |         |   |      |                                                                                                                              |    |   |   |                                                                                             |   |
|------------------------------------------------|--------|------------|--------------------------------------------------------------------------------------------------|--------|--------|--------|-----------------------------------------------------------------------------------------------------|--------------|--------|-----------|-----------------------------------------------------------------------------------------------------------------------------------|---------|--------|--------|--------------------------------------------------------------------------------------------------|--------|
|                                           |   |       |                                                                                             |   |   |   |                                                                                                |         |   | Corporate |                                                                                                                              |    |   |   |                                                                                             |
|                                           |   | Coal       |                                                                                             |   | All    |   |                                                                                                | and          |   |      |                                                                                                                              |    |   |
|                                           |   | Operations |                                                                                             |   | Other  |   |                                                                                                | Eliminations |   |      | Consolidated                                                                                                                      |    |
| Revenues                                       |   | $          |           1,354,822                            |   |   | $      |            48,785                            |         |   | $         |               (28,281                                       | )  |   | $      |           1,375,326                            |   |
| Depreciation,      depletion, and amortization |   |       |              112,047            |   |   |   |              4,571                 |         |   |      |                      949 |    |   |   |              117,567            |   |
| EBITDA      from continuing operations         |   |       |              208,723            |   |   |   |              9,757                 |         |   |      |               (41,604                                       | )  |   |   |              176,876            |   |
| Capital      expenditures                      |   |       |                83,077 |   |   |   |                 821 |         |   |      |                   1,126                 |    |   |   |                85,024 |   |
| Total      assets                              |   |       |           1,305,155                            |   |   |   |          120,133                                       |         |   |      |             (253,737                                                  | )  |   |   |           1,171,551                            |   |
|                                           |   |       |                                                                                             |   |   |   |                                                                                                |         |   |      |                                                                                                                              |    |   |   |                                                                                             |   |

|                                          |   |                    |                                                        |    |                   |   |                                                                        |    |   |   |                                                        |    |   |   |                                                        |    |
|-----------------------------------------------|--------|-------------------------|-------------------------------------------------------------|---------|------------------------|--------|-----------------------------------------------------------------------------|---------|--------|--------|-------------------------------------------------------------|---------|--------|--------|-------------------------------------------------------------|---------|
|                                          |   | Three      Months Ended |                                                        |    | Nine      Months Ended |   |
|                                          |   | September      30,      |                                                        |    | September      30,     |   |
|                                          |   | 2008                    |                                                        |    | 2007                   |   |                                                                        | 2008    |   |   | 2007                                                        |    |
| EBITDA      from continuing operations        |   | $                       |      116,977                       |    |                   | $      |        65,763                            |    |   | $      |      348,065                       |    |   | $      |      176,876                       |    |
| Interest      expense                         |   |                    |         (6,995      | )  |                   |   |       (10,171                                 | )  |   |   |       (33,594                 | )  |   |   |       (30,214                 | )  |
| Interest      income                          |   |                    |          2,725 |    |                   |   |             249 |    |   |   |          5,702 |    |   |   |          1,343 |    |
| Income      tax expense                       |   |                    |         (5,895      | )  |                   |   |         (2,484                      | )  |   |   |       (22,930                 | )  |   |   |         (6,875      | )  |
| Depreciation,      depletion and amortization |   |                    |       (41,946                 | )  |                   |   |       (43,924                                 | )  |   |   |     (130,759                            | )  |   |   |     (117,567                            | )  |
| Income      from continuing operations        |   | $                       |        64,866            |    |                   | $      |          9,433                 |    |   | $      |      166,484                       |    |   | $      |        23,563            |    |
|                                          |   |                    |                                                        |    |                   |   |                                                                        |    |   |   |                                                        |    |   |   |                                                        |    |

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|                                            |   |                    |   |   |                   |   |   |               |   |   |               |   |
|-------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|--------|--------------------|--------|--------|--------------------|--------|
|                                            |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|                                            |   | September      26,      |   |   | September      30,     |   |   | September      26, |   |   | September      30, |   |
|                                            |   | 2008                    |   |   | 2007                   |   |   | 2008               |   |   | 2007               |   |
|                                            |   |                    |   |   |                   |   |   |               |   |   |               |   |
| Total      revenues                             |   | $                       | 3,040  |   |                   | $      | -      |               |   | $      | 6,863              |   |   | $ | - |   |
| Costs      and expenses                         |   |                    | (6,565 | )      |                   |   | (759   | )                  |   |   | (13,206            | )      |   |   | (2,160 | ) |
| Gain      on sale of discontinued operations    |   |                    | 13,635 |   |                   |   | -      |               |   |   | 13,635             |   |   |   | - |   |
| Income      (loss) from operations              |   |                    | 10,110 |   |                   |   | (759   | )                  |   |   | 7,292              |   |   |   | (2,160 | ) |
| Other      income (expense)                     |   |                    | (1,391 | )      |                   |   | 86     |               |   |   | (1,930             | )      |   |   | 107 |   |
| Income      tax (expense) benefit               |   |                    | (4,011 | )      |                   |   | 121    |               |   |   | (2,606             | )      |   |   | 380 |   |
| Minority      interest in loss from operations  |   |                    | 289    |   |                   |   | 68     |               |   |   | 490                |   |   |   | 155 |   |
| Income      (loss) from discontinued operations |   | $                       | 4,997  |   |                   | $      | (484   | )                  |   | $      | 3,246              |   |   | $ | (1,518 | ) |
|                                            |   |                    |   |   |                   |   |   |               |   |   |               |   |   |   |   |   |

|                                     |   |               |   |   |              |   |
|------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                     |   | September      26, |   |   | December      31, |   |
|                                     |   | 2008               |   |   | 2007              |   |
| Current      assets                      |   | $                  | 1,066  |   |              | $      | 7,307 |   |
| Property,      plant, and equipment, net |   |               | 27,102 |   |              |   | 23,914 |   |
| Other      assets                        |   |               | 2,772  |   |              |   | 3,731 |   |
| Total      assets                        |   | $                  | 30,940 |   |              | $      | 34,952 |   |
|                                     |   |               |   |   |              |   |   |   |
| Current      liabilities                 |   | $                  | 5,431  |   |              | $      | 5,280 |   |
| Noncurrent      liabilities              |   |               | 24,429 |   |              |   | 20,668 |   |
| Other      liabilities                   |   |               | 465    |   |              |   | 553 |   |
| Total      liabilities                   |   | $                  | 30,325 |   |              | $      | 26,501 |   |
|                                     |   |               |   |   |              |   |   |   |

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Item 2. Management’s Discussion and Analysis of Financial Condition andResults of Operations

|   | · | worldwide      market demand for coal, electricity andsteel; |
|--------|--------|--------------------------------------------------------------|

|   | · | future      global economic, capital market or political  conditions; |
|--------|--------|-----------------------------------------------------------------------|

|   | · | inherent      risks of coal mining beyond ourcontrol; |
|--------|--------|-------------------------------------------------------|

|   | · | environmental      laws, including those directly affecting our coal mining and production,      and those affecting our customers' coalusage; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | regulatory      and court decisions; |
|--------|--------|--------------------------------------|

|   | · | competition      in coal markets; |
|--------|--------|-----------------------------------|

|   | · | the      geological characteristics of Central and Northern Appalachian coal      reserves; |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | · | availability      of skilled employees and other employee workforce  factors; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | weather      conditions or catastrophic weather-related  damage; |
|--------|--------|------------------------------------------------------------------|

|   | · | our      production capabilities and costs; |
|--------|--------|---------------------------------------------|

|   | · | the      consummation of financing, acquisition or disposition transactions and the      effect thereof on our business; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | · | our      ability to successfully integrate the operations we have acquired and/or      developed with our existing operations, as well as, we may acquire and/or      develop in the future; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      plans and objectives for future operations and expansion or      consolidation; |
|--------|--------|------------------------------------------------------------------------------------------|

|   | · | our      relationships with, and other conditions affecting, our      customers; |
|--------|--------|----------------------------------------------------------------------------------|

|   | · | timing      of changes in customer coalinventories; |
|--------|--------|-----------------------------------------------------|

|   | · | changes      in, renewal of and acquiring new long-term coal supply      arrangements; |
|--------|--------|----------------------------------------------------------------------------------------|

|   | · | railroad,      barge, truck and other transportation availability, performance and      costs; |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | availability      of mining and processing equipment andparts; |
|--------|--------|----------------------------------------------------------------|

|   | · | our      assumptions concerning economically recoverable coal reserve      estimates; |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | our      ability to obtain or maintain any necessary permits or rights, and our      ability to mine properties due to defects in title on leasehold      interest; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | future      legislation and changes in regulations, governmental policies or      taxes; |
|--------|--------|------------------------------------------------------------------------------------------|

|   | · | changes      in postretirement benefitobligations; |
|--------|--------|----------------------------------------------------|

|   | · | our      liquidity, results of operations and financial      condition;  |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | decline      in coal prices; |
|--------|--------|------------------------------|

|   | · | forward      sales and purchase contracts and diesel fuel swaps and put options not      accounted for as a hedge that are being marked to  market; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | indemnification      of certain obligations not beingmet; |
|--------|--------|-----------------------------------------------------------|

|   | · | continued      funding of the road construction business and related    costs; |
|--------|--------|--------------------------------------------------------------------------------|

|   | · | disruption      in coal supplies; |
|--------|--------|-----------------------------------|

|   | · | the      ability to comply with new safety and health  regulations; |
|--------|--------|---------------------------------------------------------------------|

|   | · | disruptions      in the credit markets have created uncertainty, which could adversely      affect our business; |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | unfavorable      government intervention in, or nationalization of, foreign      investments; |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | · | our      third-party suppliers may not deliver coal we  purchase; |
|--------|--------|-------------------------------------------------------------------|

|   | · | issuance      of additional shares of our common stock could cause the price of our      common stock to decline; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | provisions      in our certificate of incorporation and bylaws and the indenture for our      convertible notes may discourage a takeover attempt even if doing so might      be beneficial to our stockholders; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | restrictive      covenants in our credit facility and the indenture governing our      convertible notes; |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | certain      terms of our convertible notes, including any conversions, may adversely      impact our liquidity; |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | our      reported interest expense may increase due to a proposed accounting change      for cash settled convertible debt instruments like our convertible      notes; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      risk that our businesses and Cliffs Natural Resources Inc.      (“Cliffs”)(formerly Cleveland-Cliffs Inc) may not be integrated      successfully pursuant to the proposedmerger; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      risk that the cost savings and any other synergies from the proposed      merger may not be fully realized or may take longer to realize than      expected; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      uncertainty regarding the value of the merger consideration to be received      by Alpha stockholders in the proposed merger, due to fluctuations in the      market price of Cliffs commonshares; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      failure to obtain approval of the merger from the stockholders of Cliffs.      and us; since the approval of holders of two-thirds of Cliffs common      shares is required for the proposed transaction, the opposition of      Harbinger Capital Partners and/or other significant shareholders of Cliffs      may prevent the completion of themerger; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      failure to satisfy various other conditions to the closing of the proposed      merger contemplated by the merger agreement between Cliffs and      us; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | disruption      from the proposed merger causing disruptions in the business, including by      making it more difficult to maintain relationships with customers,      employees or suppliers; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | other      factors, including the other factors discussed in “Overview - Coal Pricing      Trends, Uncertainties and Outlook” below and the factors discussed in Part      I, Item 1A, “Risk Factors,” of our annual report on Form 10-K for the year      ended December 31, 2007.  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                           |   |                    |                                                        |    |                   |   |                                                                   |    |   |   |                                                   |    |   |   |                                                        |    |
|----------------------------------------------------------------|--------|-------------------------|-------------------------------------------------------------|---------|------------------------|--------|------------------------------------------------------------------------|---------|--------|--------|--------------------------------------------------------|---------|--------|--------|-------------------------------------------------------------|---------|
|                                                           |   | Three      Months Ended |                                                        |    | Nine      Months Ended |   |
|                                                           |   | September      30,      |                                                        |    | September      30,     |   |
|                                                           |   | 2008                    |                                                        |    | 2007                   |   |                                                                   | 2008    |   |   | 2007                                                   |    |
|                                                           |   | (in      thousands)     |                                                        |
| Income      from continuing operations                         |   | $                       |        64,866            |    |                   | $      |          9,433            |    |   | $      |      166,484                  |    |   | $      |        23,563            |    |
| Interest      expense                                          |   |                    |          6,995 |    |                   |   |        10,171                       |    |   |   |        33,594       |    |   |   |        30,214            |    |
| Interest      income                                           |   |                    |         (2,725      | )  |                   |   |            (249 | )  |   |   |         (5,702 | )  |   |   |         (1,343      | )  |
| Income      tax expense                                        |   |                    |          5,895 |    |                   |   |          2,484            |    |   |   |        22,930       |    |   |   |          6,875 |    |
| Depreciation,      depletion and amortization                  |   |                    |        41,946            |    |                   |   |        43,924                       |    |   |   |      130,759                  |    |   |   |      117,567                       |    |
|     EBITDA      from continuing operations |   | $                       |      116,977                       |    |                   | $      |        65,763                       |    |   | $      |      348,065                  |    |   | $      |      176,876                       |    |
|                                                           |   |                    |                                                        |    |                   |   |                                                                   |    |   |   |                                                   |    |   |   |                                                        |    |

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|                                                                                                                                                                                                                                                                                                                                                                         |   |                                     |                                                        |       |   |                                                        |   |   |                                                                                   |    |   |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|-------------------------------------------------------------|------------|--------|-------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------|---------|--------|---------|
|                                                                                                                                                                                                                                                                                                                                                                         |   | Three      Months Ended                  |                                                        | Increase   |   |
|                                                                                                                                                                                                                                                                                                                                                                         |   | September      30,                       |                                                        | (Decrease) |   |
|                                                                                                                                                                                                                                                                                                                                                                         |   | 2008                                     |                                                        | 2007       |   | $      or Tons                                              |   | %      |                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                         |   | (in      thousands, except per ton data) |                                                        |       |   |
| Coal      revenues                                                                                                                                                                                                                                                                                                                                                           |   | $                                        |      622,960                       |       | $      |      440,866                       | *      | $      |      182,094                                                  |    | 41%    |    |
| Freight      and handling revenues                                                                                                                                                                                                                                                                                                                                           |   |                                     |        75,709            |       |   |        58,384            |   |   |        17,325                                       |    | 30%    |    |
| Other      revenues                                                                                                                                                                                                                                                                                                                                                          |   |                                     |        16,317            |       |   |        10,137            | **     |   |          6,180                            |    | 61%    |    |
|          Total revenues                                                                                                                                                                                                                                                                                                                                       |   | $                                        |      714,986                       |       | $      |      509,387                       |   | $      |      205,599                                                  |    | 40%    |    |
|                                                                                                                                                                                                                                                                                                                                                                         |   |                                     |                                                        |       |   |                                                        |   |   |                                                                                   |    |   |    |
| Tons      Produced:                                                                                                                                                                                                                                                                                                                                                          |   |                                     |                                                        |       |   |                                                        |   |   |                                                                                   |    |   |    |
| Production/processed                                                                                                                                                                                                                                                                                                                                                         |   |                                     |          5,788 |       |   |          6,115 |   |   |            (327                 | )  | (5%    | )  |
| Purchased                                                                                                                                                                                                                                                                                                                                                                    |   |                                     |          1,223 |       |   |          1,147 |   |   |               76 |    | 7%     |    |
|          Total                                                                                                                                                                                                                                                                                                                                                |   |                                     |          7,011 |       |   |          7,262 |   |   |            (251                 | )  | (3%    | )  |
|                                                                                                                                                                                                                                                                                                                                                                         |   |                                     |                                                        |       |   |                                                        |   |   |                                                                                   |    |   |    |
| Tons      Sold:                                                                                                                                                                                                                                                                                                                                                              |   |                                     |                                                        |       |   |                                                        |   |   |                                                                                   |    |   |    |
| Steam                                                                                                                                                                                                                                                                                                                                                                        |   |                                     |          4,151 |       |   |          4,411 |   |   |            (260                 | )  | (6%    | )  |
| Metallurgical                                                                                                                                                                                                                                                                                                                                                                |   |                                     |          3,117 |       |   |          3,178 |   |   |              (61)     |    | (2%    | )       |
|          Total                                                                                                                                                                                                                                                                                                                                                |   |                                     |          7,268 |       |   |          7,589 |   |   |            (321                 | )  | (4%    | )  |
|                                                                                                                                                                                                                                                                                                                                                                         |   |                                     |                                                        |       |   |                                                        |   |   |                                                                                   |    |   |    |
| Coal      sales realization per ton:                                                                                                                                                                                                                                                                                                                                         |   |                                     |                                                        |       |   |                                                        |   |   |                                                                                   |    |   |    |
| Steam                                                                                                                                                                                                                                                                                                                                                                        |   | $                                        |          52.26 |       | $      |          48.75 | *      | $      |            3.51                 |    | 7%     |    |
| Metallurgical                                                                                                                                                                                                                                                                                                                                                                |   | $                                        |        130.25            |       | $      |          71.05 |   | $      |          59.20                            |    | 83%    |    |
|          Total                                                                                                                                                                                                                                                                                                                                                |   | $                                        |          85.70 |       | $      |          58.09 | *      | $      |          27.61                            |    | 48%    |    |
|                                                                                                                                                                                                                                                                                                                                                                         |   |                                     |                                                        |       |   |                                                        |   |   |                                                                                   |    |   |    |
| *Adjusted      from amounts reported in prior periods to exclude changes in the      presentation of fair value of derivative instruments, which are now      recorded as a component of costs and expenses, to conform to current year      income statement presentation. The adjustments have no effect on      previously reported income from operations or net income. |   |
|                                                                                                                                                                                                                                                                                                                                                                         |   |                                     |                                                        |       |   |                                                        |   |   |                                                                                   |    |   |    |
| **      Adjusted from amounts reported in prior periods to exclude discontinued      operations related to our sale of Gallatin Materials, LLC.                                                                                                                                                                                                                              |   |
|                                                                                                                                                                                                                                                                                                                                                                         |   |                                     |                                                        |       |   |                                                        |   |   |                                                                                   |    |   |    |

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|                                                                                                                                                                                                                                                                                                                                                                          |   |                                     |                                                                          |       |   |   |                                                                                        |    |   |                                                                    |    |   |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|-------------------------------------------------------------------------------|------------|--------|--------|---------------------------------------------------------------------------------------------|---------|--------|-------------------------------------------------------------------------|---------|--------|---------|
|                                                                                                                                                                                                                                                                                                                                                                          |   | Three      Months Ended                  |                                                                          | Increase   |   |
|                                                                                                                                                                                                                                                                                                                                                                          |   | September      30,                       |                                                                          | (Decrease) |   |
|                                                                                                                                                                                                                                                                                                                                                                          |   | 2008                                     |                                                                          |       | 2007   |   | $      or Tons                                                                              |    | %      |                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                          |   | (in      thousands, except per ton data) |                                                                          |       |   |
| Cost      of coal sales (exclusive of items shown separately below)                                                                                                                                                                                                                                                                                                           |   | $                                        |         467,185                       |       |   | $      | 365,366                                                                                     | *       | $      |        101,819                       |    | 28%    |    |
| Gain      on sale of coal reserves                                                                                                                                                                                                                                                                                                                                            |   |                                     |         (11,446                       | )     |   |   |                - |    |   |        (11,446)                      |    | 100%   |    |
| (Increase)      decrease in fair value of derivative instruments, net                                                                                                                                                                                                                                                                                                         |   |                                     |           34,294            |       |   |   |         (1,413                                      | )  |   |          35,707            |    | NM     |    |
| Freight      and handling costs                                                                                                                                                                                                                                                                                                                                               |   |                                     |           75,709            |       |   |   | 58,384                                                                                      |    |   |          17,325            |    | 30%    |    |
| Cost      of other revenues                                                                                                                                                                                                                                                                                                                                                   |   |                                     |           11,779            |       |   |   | 7,132                                                                                       | **      |   |            4,647 |    | 65%    |    |
| Depreciation,      depletion and amortization                                                                                                                                                                                                                                                                                                                                 |   |                                     |           41,946            |       |   |   | 43,924                                                                                      |    |   |          (1,978            | )  | (5%    | )  |
| Selling,      general and administrative expenses                                                                                                                                                                                                                                                                                                                             |   |                                     |           20,936            |       |   |   | 14,436                                                                                      |    |   |            6,500 |    | 45%    |    |
|          Total costs and expenses                                                                                                                                                                                                                                                                                                                              |   | $                                        |         640,403                       |       |   | $      | 487,829                                                                                     |    | $      |        152,574                       |    | 31%    |    |
|                                                                                                                                                                                                                                                                                                                                                                          |   |                                     |                                                                          |       |   |   |                                                                                        |    |   |                                                                    |    |   |    |
| Cost      of coal sales per ton:                                                                                                                                                                                                                                                                                                                                              |   |                                     |                                                                          |       |   |   |                                                                                        |    |   |                                                                    |    |   |    |
| Company      mines                                                                                                                                                                                                                                                                                                                                                            |   | $                                        |             58.33 |       |   | $      |           46.48                           | *       | $      |            11.85 |    | 25%    |    |
| Contract      mines (including purchased and processed)                                                                                                                                                                                                                                                                                                                       |   |                                     |             75.89 |       |   |   |           51.52                           |    |   |            24.37 |    | 47%    |    |
| Total      produced and processed                                                                                                                                                                                                                                                                                                                                             |   |                                     |             60.89 |       |   |   |           47.37                           | *       |   |            13.52 |    | 29%    |    |
| Purchased      and sold without processing                                                                                                                                                                                                                                                                                                                                    |   |                                     |             81.51 |       |   |   |           52.71                           | *       |   |            28.80 |    | 55%    |    |
|          Cost of coal sales per ton                                                                                                                                                                                                                                                                                                                            |   | $                                        |             64.27 |       |   | $      |           48.14                           | *       | $      |            16.13 |    | 34%    |    |
|                                                                                                                                                                                                                                                                                                                                                                          |   |                                     |                                                                          |       |   |   |                                                                                        |    |   |                                                                    |    |   |    |
| *Adjusted      from amounts reported in prior periods to exclude changes in the      presentation of fair value of derivative instruments, which are now      recorded as a component of costs and expenses, to conform to current year      income statement presentation. The adjustments have no effect on      previously reported income from operations or net  income. |
|                                                                                                                                                                                                                                                                                                                                                                          |   |                                     |                                                                          |       |   |   |                                                                                        |    |   |                                                                    |    |   |    |
| **      Adjusted from amounts reported in prior periods to exclude discontinued      operations related to our sale of Gallatin Materials, LLC.                                                                                                                                                                                                                               |   |
|                                                                                                                                                                                                                                                                                                                                                                          |   |                                     |                                                                          |       |   |   |                                                                                        |    |   |                                                                    |    |   |    |

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|                                                                                                                                                                                                                                                                                                                                                                          |   |                                     |                                                        |       |   |   |                                                        |   |   |                                                                        |    |   |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|-------------------------------------------------------------|------------|--------|--------|-------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------|---------|--------|---------|
|                                                                                                                                                                                                                                                                                                                                                                          |   | Nine      Months Ended                   |                                                        | Increase   |   |
|                                                                                                                                                                                                                                                                                                                                                                          |   | September      30,                       |                                                        | (Decrease) |   |
|                                                                                                                                                                                                                                                                                                                                                                          |   | 2008                                     |                                                        |       | 2007   |   | $      or Tons                                              |   | %      |                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                          |   | (in      thousands, except per ton data) |                                                        |       |   |
| Coal      revenues                                                                                                                                                                                                                                                                                                                                                            |   | $                                        |   1,700,515                                       |       |   | $      |   1,208,228                                       | *      | $      |      492,287                                       |    | 41%    |    |
| Freight      and handling revenues                                                                                                                                                                                                                                                                                                                                            |   |                                     |      220,896                       |       |   |   |      143,183                       |   |   |        77,713                            |    | 54%    |    |
| Other      revenues                                                                                                                                                                                                                                                                                                                                                           |   |                                     |        38,878            |       |   |   |        23,915            | **     |   |        14,963                            |    | 63%    |    |
|          Total revenues                                                                                                                                                                                                                                                                                                                                        |   | $                                        |   1,960,289                                       |       |   | $      |   1,375,326                                       |   | $      |      584,963                                       |    | 43%    |    |
|                                                                                                                                                                                                                                                                                                                                                                          |   |                                     |                                                        |       |   |   |                                                        |   |   |                                                                        |    |   |    |
| Tons      Produced:                                                                                                                                                                                                                                                                                                                                                           |   |                                     |                                                        |       |   |   |                                                        |   |   |                                                                        |    |   |    |
| Production/processed                                                                                                                                                                                                                                                                                                                                                          |   |                                     |        18,052            |       |   |   |        18,438            |   |   |            (386      | )  | (2%    | )  |
| Purchased                                                                                                                                                                                                                                                                                                                                                                     |   |                                     |          3,744 |       |   |   |          2,731 |   |   |          1,013                 |    | 37%    |    |
|          Total                                                                                                                                                                                                                                                                                                                                                 |   |                                     |        21,796            |       |   |   |        21,169            |   |   |             627 |    | 3%     |    |
|                                                                                                                                                                                                                                                                                                                                                                          |   |                                     |                                                        |       |   |   |                                                        |   |   |                                                                        |    |   |    |
| Tons      Sold:                                                                                                                                                                                                                                                                                                                                                               |   |                                     |                                                        |       |   |   |                                                        |   |   |                                                                        |    |   |    |
| Steam                                                                                                                                                                                                                                                                                                                                                                         |   |                                     |        12,489            |       |   |   |        12,997            |   |   |            (508      | )  | (4%    | )  |
| Metallurgical                                                                                                                                                                                                                                                                                                                                                                 |   |                                     |          9,387 |       |   |   |          8,060 |   |   |          1,327                 |    | 16%    |    |
|          Total                                                                                                                                                                                                                                                                                                                                                 |   |                                     |        21,876            |       |   |   |        21,057            |   |   |             819 |    | 4%     |    |
|                                                                                                                                                                                                                                                                                                                                                                          |   |                                     |                                                        |       |   |   |                                                        |   |   |                                                                        |    |   |    |
| Coal      sales realization per ton:                                                                                                                                                                                                                                                                                                                                          |   |                                     |                                                        |       |   |   |                                                        |   |   |                                                                        |    |   |    |
| Steam                                                                                                                                                                                                                                                                                                                                                                         |   | $                                        |          51.31 |       |   | $      |          48.53 | *      | $      |            2.78      |    | 6%     |    |
| Metallurgical                                                                                                                                                                                                                                                                                                                                                                 |   | $                                        |        112.90            |       |   | $      |          71.64 |   | $      |          41.26                 |    | 58%    |    |
|          Total                                                                                                                                                                                                                                                                                                                                                 |   | $                                        |          77.74 |       |   | $      |          57.38 | *      | $      |          20.36                 |    | 35%    |    |
|                                                                                                                                                                                                                                                                                                                                                                          |   |                                     |                                                        |       |   |   |                                                        |   |   |                                                                        |    |   |    |
| *Adjusted      from amounts reported in prior periods to exclude changes in the      presentation of fair value of derivative instruments, which are now      recorded as a component of costs and expenses, to conform to current year      income statement presentation. The adjustments have no effect on      previously reported income from operations or net  income. |
|                                                                                                                                                                                                                                                                                                                                                                          |   |                                     |                                                        |       |   |   |                                                        |   |   |                                                                        |    |   |    |
| **      Adjusted from amounts reported in prior periods to exclude discontinued      operations related to our sale of Gallatin Materials,  LLC.                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                          |   |                                     |                                                        |       |   |   |                                                        |   |   |                                                                        |    |   |    |

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|                                                                                                                                                                                                                                                                                                                                                                          |                                                                           |                                                |                                                                                      |       |                                                               |                                    |                                                                                                                |                                                         |                                              |                                                                               |    |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|-----------------------------------------------------|-------------------------------------------------------------------------------------------|------------|--------------------------------------------------------------------|-----------------------------------------|---------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|---------------------------------------------------|------------------------------------------------------------------------------------|---------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                          |                                                                           | Nine      Months Ended                              |                                                                                      | Increase   |                                                               |
|                                                                                                                                                                                                                                                                                                                                                                          |                                                                           | September      30,                                  |                                                                                      | (Decrease) |                                                               |
|                                                                                                                                                                                                                                                                                                                                                                          |                                                                           | 2008                                                |                                                                                      |       | 2007                                                               |                                    | $      or Tons                                                                                                      |                                                         | %                                                 |                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                          |                                                                           | (in      thousands, except per ton data)            |                                                                                      |       |                                                               |
| Cost      of coal sales (exclusive of items shown separately below)                                                                                                                                                                                                                                                                                                           | $                                                                              |        1,291,820 |                                                                                      |       | $                                                                  |      1,000,568 | *                                                                                                                   | $                                                            |        291,252 |                                                                               | 29%     |   |
| Gain      on sale of coal reserves                                                                                                                                                                                                                                                                                                                                            |                                                                           |                                                |           (11,446                       | )     |                                                               |                                    |                    - |                                                         |                                              |        (11,446                                  | )  | 0%     |   |
| (Increase)      decrease in fair value of derivative instruments, net                                                                                                                                                                                                                                                                                                         |             11,094 |                                                |                                                                                      |       |           (2,252 | )                                  |                                                                                                                |          13,346 |                                              | NM                                                                                 |    |
| Freight      and handling costs                                                                                                                                                                                                                                                                                                                                               |                                                                           |                                                |           220,896                       |       |                                                               |                                    |         143,183                                                             |                                                         |                                              |          77,713                       |    | 54%    |   |
| Cost      of other revenues                                                                                                                                                                                                                                                                                                                                                   |                                                                           |                                                |             28,679            |       |                                                               |                                    |           16,189                                                  | **                                                           |                                              |          12,490                       |    | 77%    |   |
| Depreciation,      depletion and amortization                                                                                                                                                                                                                                                                                                                                 |                                                                           |                                                |           130,759                       |       |                                                               |                                    |         117,567                                                             |                                                         |                                              |          13,192                       |    | 11%    |   |
| Selling,      general and administrative expenses                                                                                                                                                                                                                                                                                                                             |                                                                           |                                                |             56,962            |       |                                                               |                                    |           41,597                                                  |                                                         |                                              |          15,365                       |    | 37%    |   |
|     Total      costs and expenses                                                                                                                                                                                                                                                                                                                         |                                                                           | $                                                   |        1,728,764                                       |       |                                                               | $                                       |      1,316,852                                                                             |                                                         | $                                                 |        411,912                                  |    | 31%    |   |
|                                                                                                                                                                                                                                                                                                                                                                          |                                                                           |                                                |                                                                                      |       |                                                               |                                    |                                                                                                                |                                                         |                                              |                                                                               |    |   |   |
| Cost      of coal sales per ton:                                                                                                                                                                                                                                                                                                                                              |                                                                           |                                                |                                                                                      |       |                                                               |                                    |                                                                                                                |                                                         |                                              |                                                                               |    |   |   |
| Company      mines                                                                                                                                                                                                                                                                                                                                                            |                                                                           | $                                                   |               54.82 |       |                                                               | $                                       |             46.08                                       | *                                                            | $                                                 |              8.74 |    | 19%    |   |
| Contract      mines (including purchased and processed)                                                                                                                                                                                                                                                                                                                       |                                                                           |                                                |               68.65 |       |                                                               |                                    |             51.03                                       |                                                         |                                              |            17.62            |    | 35%    |   |
| Total      produced and processed                                                                                                                                                                                                                                                                                                                                             |                                                                           |                                                |               56.74 |       |                                                               |                                    |             46.93                                       | *                                                            |                                              |              9.81 |    | 21%    |   |
| Purchased      and sold without processing                                                                                                                                                                                                                                                                                                                                    |                                                                           |                                                |               70.24 |       |                                                               |                                    |             51.62                                       | *                                                            |                                              |            18.62            |    | 36%    |   |
|          Cost of coal sales per ton                                                                                                                                                                                                                                                                                                                            |                                                                           | $                                                   |               59.05 |       |                                                               | $                                       |             47.52                                       | *                                                            | $                                                 |            11.53            |    | 24%    |   |
|                                                                                                                                                                                                                                                                                                                                                                          |                                                                           |                                                |                                                                                      |       |                                                               |                                    |                                                                                                                |                                                         |                                              |                                                                               |    |   |   |
| *Adjusted      from amounts reported in prior periods to exclude changes in the      presentation of fair value of derivative instruments, which are now      recorded as a component of costs and expenses, to conform to current year      income statement presentation. The adjustments have no effect on      previously reported income from operations or net  income. |
|                                                                                                                                                                                                                                                                                                                                                                          |                                                                           |                                                |                                                                                      |       |                                                               |                                    |                                                                                                                |                                                         |                                              |                                                                               |    |   |   |
| **      Adjusted from amounts reported in prior periods to exclude discontinued      operations related to our sale of Gallatin Materials,  LLC.                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                          |                                                                           |                                                |                                                                                      |       |                                                               |                                    |                                                                                                                |                                                         |                                              |                                                                               |    |   |   |

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|                                          |   |               |                                                                                                |   |
|-----------------------------------------------|--------|--------------------|-----------------------------------------------------------------------------------------------------|--------|
|                                          |   | September      30, |                                                                                                |
|                                          |   | 2008               |                                                                                                |
| Term      loan                                |   | $                  |          233,125                                       |   |
| 2.375%      convertible senior notes due 2015 |   |               |          287,500                                       |   |
| Capital      lease obligations                |   |               |                 284 |   |
| Total      long-term debt                     |   |               |          520,909                                       |   |
| Less      current portion                     |   |               |                 284 |   |
| Long-term      debt, net of current portion   |   | $                  |          520,625                                       |   |
|                                          |   |               |                                                                                                |   |

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|   | · | We      must maintain a maximum leverage ratio, defined as the ratio of      consolidated debt less unrestricted cash and cash equivalents to EBITDA      (as defined in the Credit Agreement, “Adjusted EBITDA”), of not more than      3.50:1.0 for the period of four fiscal quarters ended on September 30,      2008 and for each period of four fiscal quarters ending on each quarter      end thereafter. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We      must maintain a minimum interest coverage ratio, defined as the ratio of      Adjusted EBITDA to cash interest expense, of not less than 2.50:1.0 for      the four fiscal quarters ending on the last day of any fiscal      quarter. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We      must have a maximum senior secured leverage ratio, defined as the ratio of      consolidated debt that is secured by a lien less unrestricted cash and      cash equivalents to Adjusted EBITDA, of 2.5:1.0 or 2.0:1.0 starting      January 1, 2009. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We      must satisfy a liquidity test, i.e., the sum of the      unused commitments under the credit facility’s revolving line of credit      plus our unrestricted cash and cash equivalents must not be less than      $100.0 million. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                         |   |                    |   |    |                     |   |    |               |   |   |                    |    |   |                    |    |
|------------------------------------------------------------------------------|--------|-------------------------|--------|---------|--------------------------|--------|---------|--------------------|--------|--------|-------------------------|---------|--------|-------------------------|---------|
|                                                                         |   | Three      Months Ended |   |    | Twelve      Months Ended |   |
|                                                                         |   | December      31, 2007  |   |    | March      31, 2008      |   |    | June      30, 2008 |   |   | September      30, 2008 |    |   | September      30, 2008 |    |
|                                                                         |   | (in      thousands)     |   |
| Net      income                                                              |   | $                       | 5,689  |    |                     | $      | 25,530  |               |   | $      | 74,337                  |    |   | $                       | 69,863  |   |   | $ | 175,419 |   |
| Interest      expense                                                        |   |                    | 10,091 |    |                     |   | 10,087  |               |   |   | 17,097                  |    |   |                    | 8,389   |   |   |   | 45,664 |   |
| Interest      income                                                         |   |                    | (981   | )  |                     |   | (789    | )             |   |   | (2,234                  | )  |   |                    | (2,728  | )  |   |   | (6,732 | )  |
| Income      tax expense                                                      |   |                    | 2,135  |    |                     |   | 7,968   |               |   |   | 7,662                   |    |   |                    | 9,906   |   |   |   | 27,671 |   |
| Depreciation,      depletion and amortization                                |   |                    | 42,009 |    |                     |   | 44,260  |               |   |   | 44,910                  |    |   |                    | 42,197  |   |   |   | 173,376 |   |
|          EBITDA                                               |   |                    | 58,943 |    |                     |   | 87,056  |               |   |   | 141,772                 |    |   |                    | 127,627 |   |   |   | 415,398 |   |
| Unrestricted      subsidiary                                                 |   |                    | 1,031  |    |                     |   | 1,328   |               |   |   | 1,131                   |    |   |                    | 3,504   |   |   |   | 6,994 |   |
| Change      in fair value of derivative   instruments,    net |   |                    | (6,674 | )  |                     |   | (16,684 | )             |   |   | (6,516                  | )  |   |                    | 34,294  |   |   |   | 4,420 |   |
| Other      allowance adjustments                                             |   |                    | 1,452  |    |                     |   | 607     |               |   |   | 131                     |    |   |                    | 914     |   |   |   | 3,104 |   |
| Accretion      expense                                                       |   |                    | 1,885  |    |                     |   | 1,852   |               |   |   | 1,855                   |    |   |                    | 1,846   |   |   |   | 7,438 |   |
| Amortization      of deferred gains                                          |   |                    | (184   | )  |                     |   | (213    | )             |   |   | (205                    | )  |   |                    | (177    | )  |   |   | (779 | )  |
| Loss      on early extinguishment of debt                                    |   |                    | -      |    |                     |   | -       |               |   |   | 14,669                  |    |   |                    | 33      |   |   |   | 14,702 |   |
| Stock-based      compensation charges                                        |   |                    | 2,592  |    |                     |   | 2,911   |               |   |   | 11,456                  |    |   |                    | 635     |   |   |   | 17,594 |   |
|          Adjusted EBITDA                                      |   | $                       | 59,045 |    |                     | $      | 76,857  |               |   | $      | 164,293                 |    |   | $                       | 168,676 |   |   | $ | 468,871 |   |
|                                                                         |   |                    |   |    |                     |   |    |               |   |   |                    |    |   |                    |    |   |   |   |   |   |
| Leverage      ratio                                                          |   |                    |   |    |                     |   |    |               |   |   |                    |    |   |                    |    |   |   |   | (0.08 | )  |
|                                                                         |   |                    |   |    |                     |   |    |               |   |   |                    |    |   |                    |    |   |   |   |   |   |
| Interest      coverage ratio                                                 |   |                    |   |    |                     |   |    |               |   |   |                    |    |   |                    |    |   |   |   | 11.61 |   |
|                                                                         |   |                    |   |    |                     |   |    |               |   |   |                    |    |   |                    |    |   |   |   |   |   |

| (1) | Leverage      ratio is defined in our Credit Agreement as total net debt divided by      Adjusted EBITDA. |
|-----|-----------------------------------------------------------------------------------------------------------|

| (2) | Interest      coverage ratio is defined in our Credit Agreement as Adjusted EBITDA      divided by cash interest expense. |
|-----|---------------------------------------------------------------------------------------------------------------------------|

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Item 3. Quantitative and Qualitative Disclosures About MarketRisk

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|                    |   |                          |                     |                  |                                                               |                 |              |   |                                            |                                                                                                       |    |
|-------------------------|--------|-------------------------------|--------------------------|-----------------------|--------------------------------------------------------------------|----------------------|-------------------|--------|-------------------------------------------------|------------------------------------------------------------------------------------------------------------|---------|
| Purchase      Contracts |   | Purchase      Price Range     |                     | Tons      Outstanding |                                                               | Delivery      Period |              |   | Fair      Value (In Millions) Asset/(Liability) |                                                                                                       |
|                    |   |  $                       |  45.00      - 50.00 |                  |         260,000            |                 | 10/01/08-12/31/08 |   | $                                               |                 23.2       |    |
|                    |   |                          |  50.00      - 60.00 |                  |         130,000            |                 | 10/01/08-12/31/08 |   |                                            |                 10.8       |    |
|                    |   |                          |                     |                  |         390,000            |                 |              |   | $                                               |                 34.0       |    |
|                    |   |                          |                     |                  |                                                               |                 |              |   |                                            |                                                                                                       |    |
|                    |   |                          |                     |                  |                                                               |                 |              |   |                                            |                                                                                                       |    |
| Sales      Contracts    |   | Selling      Price Range |                     | Tons      Outstanding |                                                               | Delivery      Period |              |   | Fair      Value (In Millions) Asset/(Liability) |                                                                                                       |
|                    |   | $                             | 40.00      - 50.00       |                  |           70,000 |                 | 10/01/08-12/31/08 |   | $                                               |                  (6.4 | )  |
|                    |   |                          | 50.00      - 60.00       |                  |           60,000 |                 | 10/01/08-12/31/08 |   |                                            |                  (5.1 | )  |
|                    |   |                          | 60.00      - 70.00       |                  |           30,000 |                 | 10/01/08-12/31/08 |   |                                            |                  (2.2 | )  |
|                    |   |                          | 50.00      - 60.00       |                  |         120,000            |                 | 01/01/09-12/31/09 |   |                                            |                  (5.9 | )  |
|                    |   |                          | 60.00      - 70.00       |                  |         120,000            |                 | 01/01/09-12/31/09 |   |                                            |                  (5.7 | )  |
|                    |   | $                             | 70.00      - 80.00       |                  |         120,000            |                 | 01/01/09-12/31/09 |   |                                            |                  (3.8 | )  |
|                    |   |                          |                     |                  |         520,000            |                 |              |   | $                                               |                (29.1            | )       |
|                    |   |                          |                     |                  |                                                               |                 |              |   |                                            |                                                                                                       |    |

Item 4. Controls andProcedures

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Table of Contents

Item 1. Legal Proceedings

Item 1A. Risk Factors

Item 6.Exhibits   

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SIGNATURE

|                                                                   |   |                                                  |   |   |   |   |
|------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|--------|--------|--------|
|                                                                   |   | ALPHA      NATURAL RESOURCES, INC.                    |   |   |
|                                                                   |   |                                                  |   |   |   |   |
|              Date: November 6, 2008 |   | By:/s/      David C. Stuebe                           |   |   |   |   |
|                                                                   |   | Name:      David C. Stuebe                            |   |   |   |   |
|                                                                   |   | Title:Vice      President and Chief Financial Officer |   |   |   |   |

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10-Q EXHIBIT INDEX

| Exhibit      No       |   | Description      of Exhibit                                                                                                                                                                                                                                                                                                                                                                                             |
|-----------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1                   |   | Agreement      and Plan of Merger by and among Cliffs Natural Resources Inc. (formerly      known as Cleveland-Cliffs Inc), Alpha Merger Sub, Inc. (formerly known as      Daily Double Acquisition, Inc.), and Alpha Natural Resources, Inc. dated      as of July 15, 2008 (Incorporated by reference to Exhibit 2.1 to the      Current Report on Form 8-K (File No.1-32423)      filed on July 17, 2008)            |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 3.1                   |   | Restated      Certificate of Incorporation of Alpha Natural Resources,      Inc. (Incorporated by reference to Exhibit 3.1 to the Annual Report      on Form 10-K of Alpha Natural Resources, Inc. (File No. 1-32423) filed on      March 30, 2005)                                                                                                                                                           |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 3.2                   |   | Amended      and Restated Bylaws of Alpha Natural Resources, Inc. (Incorporated by      reference to Exhibit 3.2 to the Annual Report on Form 10-K of Alpha      Natural Resources, Inc. (File No. 1-32423) filed on March 1,      2007)                                                                                                                                                                      |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 4.1                   |   | Indenture      dated as of April 7, 2008, between Alpha Natural Resources, Inc. (the      “Company”) and Union Bank of California, N.A., as Trustee (the “Trustee”)      (Incorporated by reference to Exhibit 4.1 to the Current Report on Form      8-K (File No. 1-32423) filed on April 9, 2008)                                                                                  |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 4.2                   |   | Subordinated      Indenture dated as of April 7, 2008, between the Company and the      Trustee (Incorporated by reference to Exhibit 4.2 to the Current Report on      Form 8-K (File No. 1-32423) filed on April 9, 2008)                                                                                                                                                                                        |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 4.3                   |   | Supplemental      Indenture dated as of April 7, 2008, between the Company and the      Trustee (Incorporated by reference to Exhibit 4.3 to the Current Report on      Form 8-K (File No. 1-32423) filed on April 9, 2008)                                                                                                                                                                                   |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 4.4                   |   | Form      of 2.375% Convertible Senior Note due 2015 (Incorporated by reference to      Exhibit 4.4 to the Current Report on Form 8-K (File No. 1-32423) filed on      April 9, 2008)                                                                                                                                                                                                                              |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 4.5                   |   | Seventh      Supplemental Indenture dated as of July 12, 2007 among Alpha Natural      Resources, LLC, Alpha Natural Resources Capital Corp., the existing      Guarantors, Wells Fargo Bank, N.A., as Trustee, and Cobra Natural      Resources, LLC (Incorporated by reference to Exhibit 4.16 to the      Registration Statement on Form S-3 of the Company (File No. 333-134081)      filed on April 1, 2008)  |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 4.6                   |   | Eighth      Supplemental Indenture dated as of April 14, 2008, among Alpha      Natural Resources, LLC, Alpha Natural Resources Capital Corp., the      guarantors named therein and Wells Fargo Bank, National Association, as      trustee (Incorporated by reference to Exhibit 4.1 to the Current Report on      Form 8-K (File No. 1-32423) filed on April 15, 2008)                                     |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 12.1*                 |   | Computation of Ratio of Earnings to Fixed      Charges                                                                                                                                                                                                                                                                                                                                                                  |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 12.2*                 |   | Computation of Other Ratios                                                                                                                                                                                                                                                                                                                                                                                             |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 31(a)*                |   | Certification Pursuant to Rule 13a-14(a) under the      Securities Exchange Act of 1934, as adopted pursuant to Sec. 302 of the      Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                    |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 31(b)*                |   | Certification Pursuant to Rule 13a-14(a) under the      Securities Exchange Act of 1934, as adopted pursuant to Sec. 302 of the      Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                    |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 32(a)*                |   | Certification Pursuant to 18 U.S.C. Sec. 1350, As Adopted      Pursuant to Sec. 906 of the Sarbanes-Oxley Act of  2002                                                                                                                                                                                                                                                                                                  |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 32(b)*                |   | Certification Pursuant to 18 U.S.C. Sec. 1350, As Adopted      Pursuant to Sec. 906 of the Sarbanes-Oxley Act of  2002                                                                                                                                                                                                                                                                                                  |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 100.INS†† |   | XBRL      Instance Document                                                                                                                                                                                                                                                                                                                                                                                             |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 100.SCH†† |   | XBRL      Taxonomy Extension Schema Document                                                                                                                                                                                                                                                                                                                                                                            |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 100.LAB†† |   | XBRL      Taxonomy Extension Label Linkbase Document                                                                                                                                                                                                                                                                                                                                                                    |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 100.CAL†† |   | XBRL      Taxonomy Extension Calculation Linkbase Document                                                                                                                                                                                                                                                                                                                                                              |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 100.PRE†† |   | XBRL      Taxonomy Extension Presentation Linkbase Document                                                                                                                                                                                                                                                                                                                                                             |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |

| *              |   | Filed      herewith.       |
|----------------|--------|----------------------------|
| †† |   | Furnished,      not filed. |