Westmoreland Announces Proposed Senior Secured Note Offering

Westmoreland Coal Company (NYSE AMEX: WLB) and certain subsidiaries
('Westmoreland?) today announced that it intends to offer $150.0 million
of Senior Secured Notes due 2018 (the 'Notes?) in a private placement.
The terms, timing and structure of any transaction are subject to market
and other conditions. There can be no assurance that any transaction
will ultimately be pursued or that any transaction, if pursued, will be
successful.

The net proceeds from the offering of the Notes are expected to be used
to pay all accrued and unpaid dividends on the Company′s Series A
preferred stock, to repay certain indebtedness, to retire approximately
$2.5 million of the outstanding principal owed on the senior secured
convertible notes (with the remaining principal balance of the senior
secured notes to be converted to common stock at closing) and for
general corporate purposes.

The Notes will be sold only to qualified institutional buyers in the
United States in reliance on Rule 144A under the Securities Act of 1933,
and outside the United States to non-U.S. persons in reliance on
Regulation S under the Securities Act. The proposed issuance of the
Notes will not be registered under the Securities Act, and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration requirements. This press release
shall not constitute an offer to sell, or the solicitation of an offer
to buy, any securities, nor shall there be any sale of securities
mentioned in this press release in any state in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.

Forward-Looking Information

This press release contains 'forward-looking? statements.
Forward-looking statements reflect current expectations and projections
about future events, and thus involve uncertainty and risk. It is
possible that future events, including whether the offering is completed
on the terms specified or at all, may differ from expectations due to a
variety of risks and other factors such as market conditions. It is not
possible to foresee or identify all such factors. Any forward-looking
statements in this press release are based on certain assumptions and
analyses made in light of Westmoreland′s experience and perception of
historical trends, current conditions, expected future developments, and
other factors it believes are appropriate in the circumstances.
Forward-looking statements are not a guarantee of future performance and
actual results or developments may differ materially from expectations.
Westmoreland does not intend to update any particular forward-looking
statements contained in this press release.

Westmoreland Coal Company

Kevin Paprzycki, 719-442-2600