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Arch Coal Secures State-Controlled Otter Creek Coal Reserves in Montana
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ST. LOUIS, March 18, 2010 -- Arch Coal, Inc. (NYSE: ACI) today announced that it was the successful bidder for a state coal lease known as the Otter Creek Tracts located in southeastern Montana. Arch made a one-time bonus bid for the lease of $85.8 million, payable in April 2010. The coal lease will give Arch the right to mine approximately 8,300 acres of state-owned minerals. Arch now controls approximately 1.5 billion tons of coal in Montana's Otter Creek area, including previous reserve additions such as the coal lease secured in November 2009 through Great Northern Properties Limited.

"We view the combined Otter Creek coal reserves as a strategic platform for future growth in the Northern Powder River Basin," said Steven F. Leer, Arch's chairman and chief executive officer. "The addition of the Montana state reserves further expands and strengthens our position while affording us greater flexibility in future site development. As previously stated, we believe these Northern PRB reserves will help us competitively serve U.S. power producers, supply additional coal for export to emerging Asia or possibly house the site of a future coal-conversion facility."

St. Louis-based Arch Coal is the second largest U.S. coal producer. Through its national network of mines, Arch supplies cleaner-burning, low-sulfur coal to U.S. power producers to fuel roughly 8 percent of the nation's electricity. The company also ships coal to domestic and international steel manufacturers as well as international power producers.

Forward-Looking Statements: This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties arise from changes in the demand for our coal by the domestic electric generation industry; from legislation and regulations relating to the Clean Air Act and other environmental initiatives; from operational, geological, permit, labor and weather-related factors; from fluctuations in the amount of cash we generate from operations; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. For a description of some of the risks and uncertainties that may affect our future results, you should see the risk factors described from time to time in the reports we file with the Securities and Exchange Commission.