Westmoreland Reports First Quarter 2012 Results

Westmoreland Coal Company (NasdaqGM:WLB) today reported its first
quarter results for 2012.

Highlights:

• 
  Adjusted EBITDA increased $2.7 million (11.6%) during Q1 2012 to $26.0
  million as compared to $23.3 million in Q1 2011.
  
• 
  Operating Income increased $0.3 million (4.1%) during Q1 2012 to $7.7
  million as compared to $7.4 million in Q1 2011.
  
• 
  Total revenues were $145.9 million for Q1 2012 compared to $127.8
  million in Q1 2011, an increase of 14.2%.
  
• 
  Net loss applicable to common shareholders of $0.8 million ($0.06 per
  basic and diluted share) for Q1 2012 compared to a Q1 2011 net loss of
  $18.0 million ($1.45 per basic and diluted share). Q1 2011 net loss
  included $20.2 million of charges related to the refinancing of debt.
  
• 
  Westmoreland again continued its strong safety performance achieving
  reportable and lost time incident rates approximately 85.8% and 76.4%,
  respectively, of the national averages for surface operations for the
  first quarter of 2012.
  
• 
  During the first quarter of 2012, Westmoreland′s Jewett Mine was
  selected as the winner of the Texas 2012 reclamation award by the
  Railroad Commission of Texas′ Surface Mining and Reclamation Division
  for its 'Jewett Mine Stream Restoration Initiative.?
  

'We successfully completed the acquisition of the Kemmerer Mine on
January 31 and its two month performance is included in our first
quarter results? said Keith E. Alessi, Westmoreland′s Chief Executive
Officer. 'The Kemmerer integration has gone very smoothly and the mine′s
financial performance during the quarter exceeded our internal
projections as a result of stronger than projected sales, productivity
gains and cost management. We are still working through the process of
valuing the Kemmerer assets and recording the final purchase accounting
for the transaction.?

'We were pleased with our overall results, particularly in light of the
extremely mild winter conditions experienced throughout the service
areas of our customers. I consider this to be continuing validation of
our business model, which is largely focused on long term, cost plus
contracts. Our model provides for downside protection in quarters, such
as this, in which we experience reduced tonnage. We remain focused on
managing our balance sheet and finished the quarter in one of the most
liquid positions we have experienced in many years as a result of these
efforts, and the recent financing associated with the Kemmerer
acquisition. During the quarter, we also welcomed Bob King to the
company as our President and Chief Operating Officer. Bob′s deep
industry experience will be invaluable to us as we explore ways to
become more efficient and to grow the business.?

'A number of normally scheduled maintenance shutdowns are planned during
the second quarter at our ROVA power plant and at customer facilities.
These have been factored into our internal projections and we would
expect to see our lowest quarterly operating results during this
upcoming period. We expect to see further efficiencies from the Kemmerer
acquisition as we continue our integration efforts and we continue to
see the results of strong cost containment initiatives in all areas of
our business.?

'I am very proud of the Jewett Mine′s 2012 reclamation award that it
received this quarter. The Jewett team′s efforts underscore our core
commitment to environment stewardship. We also had another quarter in
which we recorded a very good safety record.?

Safety

Safety performance at Westmoreland mines continues to be significantly
better than the national average for surface operations. Westmoreland
mines had reportable and lost time incident rates year to date through
the first quarter of 2012 of 1.57 and 0.94 versus the national surface
mine rates of 1.83 and 1.23, respectively.

Effective February 1, 2012, Westmoreland′s safety performance statistics
are inclusive of the Kemmerer Mine. Increases in these rates are
primarily related to safety performance of the Kemmerer Mine.
Westmoreland has begun to implement safety programs, training programs,
supervisory training, and other measures employed throughout
Westmoreland′s coal mining operations, at the Kemmerer Mine.
Westmoreland fully expects the Kemmerer Mine′s safety performance to
align with Westmoreland′s historical safety performance, in which MSHA
reportable injury rates are less than 50% of the national average.

Financial Results

Westmoreland′s Adjusted EBITDA increased to $26.0 million in Q1 2012
from $23.3 million in Q1 2011. This increase was predominately driven by
the January 31^st acquisition of the Kemmerer Mine. Q1 2012
Adjusted EBITDA was negatively impacted by the remaining $1.5 million
deductible on WRI′s business interruption claim following an accident at
a customer facility, an unplanned 10-day ROVA maintenance outage, and
unusually warm weather conditions which reduced customer demand.

Westmoreland′s revenues in Q1 2012 increased to $145.9 million compared
with $127.8 million in Q1 2011. This increase was also primarily driven
by the addition of the Kemmerer Mine and the additional factors
described above.

Westmoreland′s Q1 2011 net loss includes $20.2 million of refinancing
and debt conversion expense. Excluding the $20.2 million of refinancing
and debt conversion expense in Q1 2011, the Q1 2012 net loss increased
by $3.1 million. This increase in loss was driven by increased interest
expense accrued and other factors described above, and was partially
offset by the Kemmerer Mine acquisition.

Coal Segment Operating Results

The following table summarizes Westmoreland′s Q1 2012 and Q1 2011 coal
segment performance:

Westmoreland′s coal revenues and Adjusted EBITDA both increased
significantly during the first quarter of 2012 over prior year. Sales
and Adjusted EBITDA increased due both to the Kemmerer Mine acquisition
and were offset by unusually warm weather conditions reducing customer
demand at other mines. Additionally, Q1 2012 was negatively impacted by
the remaining $1.5 million deductible on WRI′s business interruption
claim following an accident at a customer facility.

Power Segment Operating Results

The following table summarizes Westmoreland′s Q1 2012 and Q1 2011 power
segment performance:

Westmoreland′s power segment revenues and Adjusted EBITDA decreased in
Q1 2012 due to a 10-day unplanned maintenance outage that occurred
during Q1 2012.

Nonoperating Results

Interest expense for Q1 2012 also increased to $9.9 million from $7.0
million in Q1 2011 as a result of our new notes issued in February 2011
as well as the Kemmerer acquisition debt issued in January 2012.

Cash Flow from Operations and Liquidity

Cash and Cash Equivalents increased to $50.1 million at March ?31, 2012
up from $30.8 million as of December ?31, 2011. Overall cash increased by
$19.3 million during Q1 2012 driven by the Kemmerer Mine′s strong
initial performance and working capital management following the
acquisition.

Conference Call

A conference call regarding Westmoreland Coal Company′s first quarter
2012 results will be held on Thursday, April 26, 2012, at 10:00 a.m.
Eastern Time. Call-in instructions are available on our website and have
been provided in a separate news release.

About Westmoreland Coal Company

Westmoreland Coal Company is the oldest independent coal company in the
United States. Our coal operations include coal mining in the Powder
River Basin in Montana, sub-bituminous mining in Wyoming, 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.

Cautionary Note Regarding Forward-Looking Statements

Forward-looking statements are based on Westmoreland′s current
expectations and assumptions regarding its business, the economy and
other future conditions. Because forward-looking statements relate to
the future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict. Our actual
results may differ materially from those contemplated by the
forward-looking statements. Westmoreland cautions you therefore against
relying on any of these forward-looking statements. They are statements
neither of historical fact nor guarantees or assurances of future
performance. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include
political, economic, business, competitive, market, weather and
regulatory conditions and Mr. Alessi′s comments relating to the results
at and integration of Kemmerer.

Any forward-looking statements made by Westmoreland in this news release
speaks only as of the date on which it was made. Westmoreland undertakes
no obligation to publicly update any forward-looking statements, whether
as a result of new information, future developments or otherwise, except
as may be required by law.

EBITDA and Adjusted EBITDA are supplemental measures of financial
performance that are not required by, or presented in accordance with,
GAAP. EBITDA and Adjusted EBITDA are included in this news release
because they are key metrics used by management to assess Westmoreland′s
operating performance and Westmoreland believes that EBITDA and Adjusted
EBITDA are useful to an investor in evaluating our operating performance
because these measures:

• 
  are used widely by investors to measure a company′s operating
  performance without regard to items excluded from the calculation of
  such terms, which can vary substantially from company to company
  depending upon accounting methods and book value of assets, capital
  structure and the method by which assets were acquired, among other
  factors; and
  
• 
  help investors to more meaningfully evaluate and compare the results
  of Westmoreland′s operations from period to period by removing the
  effect of our capital structure and asset base from our operating
  results.
  

Neither EBITDA nor Adjusted EBITDA is a measure calculated in accordance
with GAAP. The items excluded from EBITDA and Adjusted EBITDA are
significant in assessing Westmoreland′s operating results. EBITDA and
Adjusted EBITDA have limitations as analytical tools, and should not be
considered in isolation from, or as a substitute for, analysis of our
results as reported under GAAP. For example, EBITDA and Adjusted EBITDA:

• 
  do not reflect our cash expenditures, or future requirements for
  capital and major maintenance expenditures or contractual commitments;
  
• 
  do not reflect income tax expenses or the cash requirements necessary
  to pay income taxes;
  
• 
  do not reflect changes in, or cash requirements for, our working
  capital needs; and
  
• 
  do not reflect the significant interest expense, or the cash
  requirements necessary to service interest or principal payments, on
  certain of our debt obligations.
  

In addition, although depreciation and amortization are non-cash
charges, the assets being depreciated and amortized will often have to
be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect
any cash requirements for such replacements. Other companies in our
industry and in other industries may calculate EBITDA and Adjusted
EBITDA differently from the way that Westmoreland does, limiting their
usefulness as comparative measures. Because of these limitations, EBITDA
and Adjusted EBITDA should not be considered as measures of
discretionary cash available to us to invest in the growth of its
business. Westmoreland compensates for these limitations by relying
primarily on its GAAP results and using EBITDA and Adjusted EBITDA only
as supplemental data.

Westmoreland Coal Company

Kevin Paprzycki, 855-922-6463