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Demands on Our Coal Industry Making the Case for 55 Foot Channels Bruce A. Hartshorn

Ee. Demands on Our Coal Industry Making the Case for 55 Foot Channels Bruce A. Hartshorn Hampton Roads Navigational Summit April 4, 2012. Legal Disclaimers. Forward-Looking Statements

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Demands on Our Coal Industry Making the Case for 55 Foot Channels Bruce A. Hartshorn

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  1. Ee Demands on Our Coal Industry Making the Case for 55 Foot Channels Bruce A. Hartshorn Hampton Roads Navigational Summit April 4, 2012

  2. Legal Disclaimers Forward-Looking Statements Statements in this presentation which are not statements of historical fact are “forward-looking statements” within the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance. Many factors could cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward looking-statements. These factors are discussed in detail in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in our other filings with the SEC. We make forward-looking statements based on currently available information, and we assume no obligation to update the statements made today or contained in our Annual Report or other filings due to changes in underlying factors, new information, future developments, or otherwise, except as required by law. Third Party Information This presentation, including certain forward-looking statements herein, include information obtained from third party sources that we believe to be reliable. However, we have not independently verified this third party information and cannot assure you of its accuracy or completeness. While we are not aware of any misstatements regarding any third party data contained in this presentation, such data involve risks and uncertainties and are subject to change based on various factors, including those discussed detail in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in our other filings with the SEC. We assume no obligation to revise or update this third party information to reflect future events or circumstances.

  3. Hampton Roads Coal Terminals Dominion Terminal Associates and Pier IX Terminal, Newport News, VA Lambert’s Point Terminal, Norfolk, VA • DTA - owned by Alpha Natural Resources, Peabody Energy and Arch Coal • Pier IX - owned by Kinder Morgan Terminals • CSX provides rail service to both • Norfolk Southern owns and provides rail service • Coal to Hampton Roads primarily originates in Central Appalachia - Virginia, West Virginia, and Kentucky

  4. Historic Coal Exports in Hampton Roads 1991: 59 million 1957: 52 million 1980: 50 million 1970: 48 million 2011: 42.2 million Million Short Tons

  5. Hampton Roads Export Volume Trends • Hampton roads also ships coal to U.S. coastwise locations – annual volumes have ranged from 4.7 mn to 6.2 mn net tons since 2006 Source: T. Parker Host, Internal

  6. Hampton Roads Exports by Coal Type • Metallurgical volumes more than doubled from 2006, on strength in international steel markets and propelled by strong growth in Asia • Steam volumes generally trending up on increasing world coal demand Source: T. Parker Host, Internal

  7. Hampton Roads Top Ten Export Countries - 2006 vs. 2011 Source: T. Parker Host, Internal

  8. Historical CAPP Cash Costs Sources: JT Boyd, Wood Mackenzie • Not only have average costs increased significantly but the range of costs has widened substantially Sources: JT Boyd, Wood Mackenzie

  9. CapesizeFleet (150-180,000 dwt) by Year of Build April 2012 Source: SSY

  10. M/V CAPE DOVER Capesize Vessel Year Built: 2006 LOA: 290 m Beam: 47m 185,805 MT DWT

  11. ADDITIONAL CARGO INTAKE

  12. CARGO INTAKE: M/V CAPE DOVER

  13. Ocean Freight Relative to 55-Foot Channel

  14. Study Period: 2010 • Virginia Coal Production: 22,400,000 Net Tons • Virginia Coal Industry Spending: $3.7 Billion • Spending Per Ton Mined: $165.18/Ton Economic Impact of the Coal Industry In Virginia • Source: Chmusa Economics & Analytics**. • *8222

  15. 55-FOOT DREDGE PROJECT *Basis 10.0 million tons

  16. www.alphanr.com 16

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