Westmoreland Announces Plan to Acquire Kemmerer Mine

Westmoreland Coal Company (NasdaqGM:WLB) announced today that it has
agreed to purchase Chevron Mining Inc.′s Kemmerer mine in the Hams Fork
Region of southwestern Wyoming for $179 million plus approximately $14
million in working capital. It is anticipated that the purchase price
will be funded through a combination of cash consideration of
approximately $74 million, plus the assumption of approximately $118.0
million in certain liabilities, including post retirement medical,
pension, black lung, and asset retirement obligation liabilities. Over
the last five years, Kemmerer has produced, on average, 4.7 million tons
of high-quality sub-bituminous coal for sale to the adjacent Naughton
power station, as well as various industrial customers located in the
proximate geographic region.

The transaction includes approximately 118 million tons of coal reserves
as of December 31, 2011, enough for 20 years of production; a skilled
and stable workforce; recently installed state-of-the-art coal
preparation and loadout facilities; strong customer commitments; and an
expansive fleet of well maintained mining equipment. Additionally,
substantially all of Kemmerer′s projected production for 2012 through
2016 is committed and priced under existing sales contracts.

'Strategically, the Kemmerer mine fits well with our existing mine mouth
operations,? said Keith E. Alessi, Westmoreland′s President and CEO.
'The mine has a diversified base of stable customers, both utility and
industrial. Under Chevron′s stewardship, the mine has been well managed
and its capital equipment is in excellent condition. We will look for
additional strategic acquisitions as we continue to deliver premium
value in the coal industry through close affiliation with world class
customers. We anticipate this transaction to be cash flow positive
immediately upon closing and in line with our strategic plan to
de-leverage over time. The acquisition will allow us to leverage our
already efficient corporate platform, and we hope to close the
transaction by January 31, 2012.?

'We view the Kemmerer workforce, which totals approximately 290 people,
as a core component of the transaction. The employees of Kemmerer will
be a tremendous addition to our company and we look forward to welcoming
them to the Westmoreland family,? said Alessi. 'These skilled employees
share our core values of uncompromised safety and environmental
excellence.?

Consummation of the transaction is subject to certain customary
conditions and approvals and has already been approved by the Board of
Directors of Westmoreland and the appropriate governing bodies at
Chevron Mining Inc. Gleacher & Company acted as financial advisor to
Westmoreland. There can be no assurance that the transaction will be
completed or that the anticipated benefits of the transaction will be
realized.

Forward-Looking Statements

This release may contain 'forward-looking statements.? Forward-looking
statements can be identified by words such as 'anticipates,? 'intends,?
'plans,? 'seeks,? 'believes,? 'estimates,? 'expects? and similar
references to future periods. These statements involve known and unknown
risks, which may cause our actual results to differ materially from
results expressed or implied by the forward-looking statements. These
risks include factors such as the uncertainty of negotiations to result
in an agreement or a completed transaction, the uncertain nature of the
expected benefits from the actual or expected acquisition, the uncertain
nature of the announced acquisition, the ability to complete such
transactions, risks associated with the our industry or the economy
generally, and other such matters discussed in the 'Risk Factors?
section of our 2010 Annual Report on Form 10-K and subsequent quarterly
reports filed on Form 10-Q. Although we may from time to time
voluntarily update our prior forward looking statements, we disclaim any
commitment to do so except as required by securities laws.

About Westmoreland Coal Company

Westmoreland Coal Company is the oldest independent coal company in the
United States. The Company′s coal operations include coal mining in the
Powder River Basin in Montana and lignite mining operations in Montana,
North Dakota and Texas. Its power operations include ownership of the
two-unit ROVA coal-fired power plant in North Carolina. For more
information, visit www.westmoreland.com.

Westmoreland Coal Company

Kevin Paprzycki, 855-922-6463