Revenues increased 8 percent to $378.0 million versus the second quarter 2010.

Operating income and Adjusted EBITDA were $21.4 million and $37.6 million, down 63 percent and 45 percent, respectively, compared to the second quarter 2010 primarily due to the impact of contractual amendments with ArcelorMittal.

Total coke production increased to 1.33 million tons.

Total domestic coke capacity utilization improved to 100% in the second quarter.

Compared to the first quarter 2011, Adjusted EBITDA rose 42 percent.

(In millions)

Revenues

Operating Income

Adjusted EBITDA⁽²⁾

Net Income Attributable to Net Parent Investment

Increase/
Decrease

(In millions, except per ton amounts)

Segment Earnings⁽²⁾

Adjusted EBITDA⁽²⁾

Sales Volumes (in thousand tons)

Adjusted EBITDA/Ton⁽²⁾

The decline in segment earnings and Adjusted EBITDA was largely driven by a $38.9 million decrease in operating margins, which were adversely impacted by lower sales pricing as a result of the contract amendments with ArcelorMittal and higher internal coal transfer pricing.

The ArcelorMittal contract amendments represented $23.6 million of the decline in operating margins.

Internal coal transfer pricing also negatively impacted Jewell Coke operating margins by $13.6 million, with a corresponding increase in the earnings of the Coal Mining segment, as coal transfer prices increased from $103.86 per ton in the second quarter 2010 to $156.12 per ton in the second quarter 2011. Had the internal transfer price of coal been equal to the contract price of $165 per ton in the Jewell segment’s coke sales price, earnings would have decreased by $2.3 million in the Jewell segment with an equal and offsetting increase in the Coal Mining segment, which would reduce adjusted EBITDA per ton to approximately $62 per ton.

In addition, lower sales volumes reduced segment earnings and Adjusted EBITDA by $3.5 million. The higher volume in second quarter 2010 was related to spot coke sales from inventory during the quarter.

(In millions, except per ton amounts)

Segment Earnings⁽¹⁾⁽²⁾

Adjusted EBITDA⁽²⁾

Sales Volumes (in thousand tons)

Adjusted EBITDA/Ton⁽²⁾

The increase in segment earnings and Adjusted EBITDA is attributable to the previously discussed ArcelorMittal contract changes that increased operating cost reimbursement and fixed fee revenue by $4.3 million under the Haverhill-ArcelorMittal contract. Additionally, beginning in 2011, the operating cost reimbursement mechanism in the Haverhill-AK Steel contract changed from a fixed recovery mechanism to one based on annually budgeted costs, increasing operating cost recovery by $3.7 million. In addition, lower operating costs at Haverhill also contributed $1.5 million to the improvement in operating results in the second quarter 2011.

Higher steam sales at Granite City contributed $2.5 million in segment earnings.

These increases were partially offset by $7.5 million in lower operating margins at Indiana Harbor due to approximately $3.7 million of higher maintenance and repair costs to address oven reliability issues, which were not recoverable from our customer, $2.3 million in lower coal-to-coke yield results and a $1.2 million ($0.8 million attributable to net parent investment and $0.4 million attributable to noncontrolling interests) lower of cost or market adjustment on coke in inventory purchased to meet the projected Indiana Harbor production shortfall.

Based on the lower results of Indiana Harbor, operating income attributable to noncontrolling interests decreased segment earnings by $0.6 million in the second quarter 2011, a decrease of $1.6 million from the second quarter 2010.

Increased depreciation expense of $1.2 million at Granite City and $0.5 million at Haverhill related to prior year capital expenditures further decreased segment earnings for the second quarter 2011 compared to the second quarter 2010.

Segment earnings and Adjusted EBITDA both increased $0.8 million, to $0.8 million in the second quarter 2011. These increases are primarily due to currency transaction losses incurred in the second quarter 2010.

(In millions, except per ton amounts)

Segment Earnings

Adjusted EBITDA⁽¹⁾

Sales Volumes (in thousand tons)⁽²⁾

Sales Price per ton (excludes transportation costs)⁽³⁾

Adjusted EBITDA/Ton⁽¹⁾

Higher intersegment sales to the Jewell Coke segment, driven by an increase in transfer pricing, and higher third-party sales primarily drove the increase in segment earnings and adjusted EBITDA and were partially offset by an increase in operating costs.

Internal coal transfer pricing between Jewell Coke and Coal Mining segments have equal and offsetting impacts on segment earnings. In second quarter 2011, had the internal transfer price of coal been equal to the contract price of $165 per ton in the Jewell segment’s coke sales price, earnings would have increased by $2.3 million in the Coal Mining segment with an equal and offsetting decrease in the Jewell Coke segment, which would have increased Adjusted EBITDA per ton to approximately $34 per ton.

Operating costs increased due to operational disruptions from the interference with a gas well, lower productivity due to labor shortages, incremental costs associated with training and variations in the thickness and quality of coal seams that reduced Jewell production volumes.

Corporate expenses increased $7.9 million to $10.9 million for the three months ended June 30, 2011 compared to $3.0 million for the corresponding period of 2010. The increase in corporate expenses was driven by additional headcount required to operate as a public company

and $4.0 million in restructuring costs. Net financing income was $3.5 million and $3.4 million in the three months ended June 30, 2011 and 2010, respectively.

Net cash provided by operating activities decreased by $168.0 million for the six months ended June 30, 2011 as compared to the corresponding period in 2010. The decrease was primarily attributable to increases in working capital in 2011, largely due to the increase in coke inventory to meet the projected shortfall at Indiana Harbor and to a lesser extent higher coal inventory, higher accounts receivable, lower accrued liabilities and lower net income.

Capital expenditures were $128.0 million during the six months ended June 30, 2011, up from $66.0 million for the same period in the prior year, primarily due to the construction of our new facility in Middletown, Ohio.

Adjusted EBITDA represents earnings before interest, taxes, depreciation, depletion and amortization (“EBITDA”) adjusted for sales discounts and the deduction of income attributable to non-controlling interests in our Indiana Harbor cokemaking operations. EBITDA reflects sales discounts included as a reduction in sales and other operating revenue. The sales discounts represent the sharing with our customers of a portion of nonconventional fuels tax credits, which reduce our income tax expense. However, we believe that our Adjusted EBITDA would be inappropriately penalized if these discounts were treated as a reduction of EBITDA since they represent sharing of a tax benefit which is not included in EBITDA. Accordingly, in computing Adjusted EBITDA, we have added back these sales discounts. Our Adjusted EBITDA also reflects the deduction of income attributable to noncontrolling interest in our Indiana Harbor cokemaking operations. EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to net income or operating income under GAAP and may not be comparable to other similarly titled measures in other businesses. Management believes Adjusted EBITDA is an important measure of the operating performance of the Company’s net assets and is indicative of

the Company’s ability to generate cash from operations. See the tables (unaudited) at the end of this release for reconciliations of net income and operating income to EBITDA and Adjusted EBITDA.

Adjusted EBITDA/Ton represents Adjusted EBITDA divided by tons sold.

Segment Earnings represents operating income attributable to net parent investment of our segments: Jewell Coke, Other Domestic Coke, International Coke and Coal Mining.

Revenues

Sales and other operating revenue

Other income (loss)

Total revenues

Costs and operating expenses

Cost of products sold and operating expenses

Loss on firm purchase commitments

Selling, general and administrative expenses

Depreciation, depletion and amortization

Total costs and operating expenses

Operating income

Interest income—affiliate

Interest income

Interest cost—affiliate

Capitalized interest

Total financing income, net

Income before income tax expense

Income tax expense

Net income

Less: Net income (loss) income attributable to noncontrolling interests

Net income attributable to net parent investment

Assets

Cash and cash equivalents

Accounts receivable

Inventories

Interest receivable from affiliate

Deferred income taxes

Total current assets

Notes receivable from affiliate

Investment in Brazilian cokemaking operations

Properties, plants and equipment, net

Lease and mineral rights, net

Goodwill

Deferred charges and other assets

Total assets

Liabilities and Equity

Advances from affiliate

Accounts payable

Accrued liabilities

Taxes payable

Total current liabilities

Payable to affiliate

Accrual for black lung benefits

Retirement benefit liabilities

Deferred income taxes

Asset retirement obligations

Other deferred credits and liabilities

Commitments and contingent liabilities

Total liabilities

Equity

Net parent investment

Noncontrolling interests

Total equity

Total liabilities and equity

Cash Flows from Operating Activities:

Net income

Adjustments to reconcile net income to net cash provided by operating activities:

Loss on firm purchase commitment

Depreciation, depletion and amortization

Deferred income tax expense

Payments in excess of expense for retirement plans

Changes in working capital pertaining to operating activities:

Accounts receivable

Inventories

Accounts payable and accrued liabilities

Taxes payable

Other

Net cash provided by operating activities

Cash Flows from Investing Activities:

Capital expenditures

Acquisition of business, net of cash received

Proceeds from sales of assets

Net cash used in investing activities

Cash Flows from Financing Activities:

Net increase (decrease) in advances from affiliate

Repayments of notes payable assumed in acquisition

Increase (decrease) in payable to affiliate

Cash distributions to noncontrolling interests in cokemaking operations

Net cash provided by (used in) financing activities

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Sales and other operating revenues:

Jewell Coke

Other Domestic Coke

International Coke

Coal Mining

Coal Mining intersegment sales

Elimination of intersegment sales

Total

Earnings:

Jewell Coke

Other Domestic Coke⁽¹⁾

International Coke

Coal Mining

Corporate and Other:

Corporate expenses

Net financing⁽¹⁾

Pretax income attributable to net parent investment

Income tax expense

Net income attributable to net parent investment

Coke Operating Data:

Capacity Utilization (%)

Jewell Coke

Other Domestic Coke

Total

Coke production volumes (thousands of tons):

Jewell Coke

Other Domestic Coke

International Coke—operated facility

Coke sales volumes (thousands of tons):

Jewell Coke

Other Domestic Coke

Total

Coal Operating Data⁽²⁾:

Coal sales volumes (thousands of tons):

Internal use

Third parties

Total

Coal production (thousands of tons)⁽³⁾

Purchased coal (thousands of tons)

Coal sales price per ton (excludes transportation costs)⁽⁴⁾

Coal cash production cost per ton⁽⁵⁾

Purchased coal cost per ton⁽⁶⁾

Total coal production cost per ton⁽⁷⁾

Excludes income (loss) attributable to noncontrolling investors in our Indiana Harbor cokemaking operations.

Includes production from company and contractor-operated mines.

Includes HKCC coal production of 84 thousand tons and 150 thousand tons for the second quarter and first six months of 2011, respectively.

Includes sales to affiliates, including sales to Jewell Coke established via a transfer pricing agreement. The transfer price per ton to Jewell Coke was $156.12 and $103.86 for the second quarter 2011 and 2010, respectively, and $144.99 and $103.71 for the first six months of 2011 and 2010, respectively.

Mining and preparation costs for tons produced, excluding depreciation, depletion and amortization, divided by coal production volume.

Costs of purchased raw coal divided by purchased coal volume.

Cost of mining and preparation costs, purchased raw coal costs, and depreciation, depletion and amortization divided by coal sales volume. Depreciation, depletion and amortization per ton were $9.50 and $6.12 for the second quarter of 2011 and 2010, respectively and $8.19 and $5.79 for the first six months of 2011 and 2010, respectively.

Net Income

Add: Depreciation, depletion and amortization

Subtract: Interest income (primarily from affiliates)

Add: Interest cost - affiliate

Subtract: Capitalized interest

Add: Income tax expense

EBITDA

Add: Sales discounts provided to customers due to sharing of nonconventional fuel tax credits

Add (Subtract): Net (income) loss attributable to noncontrolling interests

Adjusted EBITDA

Operating income (loss)

Add: Depreciation, depletion and amortization

EBITDA

Net Income

Add: Depreciation, depletion and amortization

Subtract: Interest income (primarily from affiliates)

Add: Interest cost - affiliate

Subtract: Capitalized interest

Add: Income tax expense

EBITDA

Add: Sales discounts provided to customers due to sharing of nonconventional fuel tax credits

Add (Subtract): Net (income) loss attributable to noncontrolling interests

Adjusted EBITDA

Operating income (loss)

Add: Depreciation, depletion and amortization

EBITDA