Operating income was $30.1 million in third quarter 2011 down from $48.4 million in third quarter 2010 primarily due to contract amendments with ArcelorMittal

Third quarter 2011 Adjusted EBITDA of $44.8 million reflects sequential improvement over first and second quarter 2011

Achieved record domestic cokemaking production of 964 thousand tons in the quarter, driven by strong performance at Indiana Harbor operations

Increased ownership in Indiana Harbor cokemaking facility partnership

Recently constructed Middletown, Ohio facility delivered first metallurgical coke production to AK Steel

Higher metallurgical coal pricing drove improved results at coal mining operations; planned expansion slowed to drive operational improvements

(In millions)

Revenues

Operating Income

Adjusted EBITDA⁽¹⁾

Net Income Attributable to Shareholders

See definitions of Adjusted EBITDA and reconciliations of Adjusted EBITDA elsewhere in this release.

Reflects impact of contract amendments with ArcelorMittal that became effective in first quarter 2011. Had these revised provisions been in place in 2010, revenues, operating income, Adjusted EBITDA and net income attributable to shareholders (assuming a 37 percent tax rate ) would have been $7.9 million, $7.9 million, $7.9 million and $5.0 million lower, respectively, in third quarter 2010.

(In millions, except per ton amounts)

Segment Earnings ⁽¹⁾

Adjusted EBITDA⁽¹⁾

Sales Volumes (in thousand tons)

Adjusted EBITDA/Ton⁽¹⁾

See definitions of Segment Earnings, Adjusted EBITDA and Adjusted EBITDA/Ton and reconciliations of Adjusted EBITDA elsewhere in this release.

Reflects impact of contract amendments with ArcelorMittal that became effective in first quarter 2011. Had these revised provisions been in place in 2010, segment earnings and Adjusted EBITDA would have each been $12.8 million lower in the third quarter 2010.

The decline in segment earnings and Adjusted EBITDA was due to:

The previously discussed contract amendments with ArcelorMittal, which accounted for $12.8 million of the decline in segment earnings and Adjusted EBITDA.

Internal coal transfer pricing increased from $103.68 per ton in the third quarter 2010 to $163.53 per ton in the third quarter 2011, negatively impacting segment earnings by $15.7 million, with a corresponding increase in the earnings of the Coal Mining segment. Other items, including the absence of spot coke sales made in the third quarter 2010 and slightly lower sales volumes, reduced segment earnings by approximately $2.4 million. These items were offset by $17.0 million of higher revenues, which resulted from the pass-through of higher coal costs.

(In millions, except per ton amounts)

Segment Earnings⁽¹⁾⁽²⁾

Adjusted EBITDA⁽¹⁾⁽²⁾

Sales Volumes (in thousand tons)

Adjusted EBITDA/Ton⁽¹⁾⁽²⁾

See definitions of Segment Earnings, Adjusted EBITDA and Adjusted EBITDA/Ton and reconciliations of Adjusted EBITDA elsewhere in this release.

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

Segment earnings and Adjusted EBITDA declined due to:

A decline in coal and operating cost recovery of $3.4 million at Haverhill due to a change in the coke pricing mechanism in our AK Steel-Haverhill contract from fixed pricing in 2010 to pass-through pricing in 2011, which reduced coke margins by $1.4 million as well as the absence of a favorable coal inventory adjustment in the prior year period, which reduced margins by $2.0 million.

Lower recovery of coal and operating costs at Granite City and Indiana Harbor of $2.9 million. The decrease was primarily driven by the absence of a favorable coal inventory adjustment and strong coal-to-coke yield performance in the third quarter 2010.

These declines were partly offset by increased fee revenue of $4.9 million at Haverhill due to the previously discussed ArcelorMittal-Haverhill contract amendments.

Operating income attributable to noncontrolling interests decreased segment earnings by $2.4 million in the third quarter 2011 and $2.5 million in third quarter 2010.

Segment earnings increased to $1.7 million in the third quarter up from $0.6 million in the prior year. The increase is due primarily to lower selling, general and administrative costs as a result of a change in the corporate allocation methodology.

(In millions, except per ton amounts)

Segment Earnings ⁽¹⁾

Adjusted EBITDA ⁽¹⁾

Sales Volumes (in thousand tons)⁽²⁾

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

Adjusted EBITDA/Ton ⁽¹⁾

See definitions of Segment Earnings, Adjusted EBITDA and Adjusted EBITDA/Ton and reconciliations of Adjusted EBITDA elsewhere in this release.

Includes sales to affiliates and third party sales.

Includes sales to affiliates, including sales to Jewell Coke established via a transfer pricing agreement.

Segment earnings and Adjusted EBITDA benefited from $11.9 million in higher intersegment sales and $12.7 million in higher third-party sales, $4.3 million of which were attributable to HKCC.

Partially offsetting these increases was $17.3 million in higher operating costs, of which $13.7 million were from existing operations and $3.6 million were due to HKCC. The cost increase at existing operations were a result of incremental expenses associated with training, higher wage rates, the implementation of a new bonus program to retain skilled mine employees and higher royalty payments. In addition, lower productivity due to labor shortages and the variations in the thickness and quality of the coal seams reduced Jewell production volumes, which negatively impacted coal cash production costs per ton. A favorable fair value adjustment of $1.9 million relating to the HKCC contingent consideration arrangement that requires the payment of royalties to HKCC’s former owners reduced coal production costs.

Segment earnings were also impacted by higher selling, general and administrative expense of $1.0 million and higher depreciation, depletion and amortization expenses of $1.4 million.

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 customers of a portion of nonconventional fuels tax credits, which reduce our income tax expense. However, we believe 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 interests 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 SunCoke shareholders of our segments: Jewell Coke, Other Domestic Coke, International Coke and Coal Mining.

Revenues

Sales and other operating revenue

Other income, net

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

Interest cost

Capitalized interest

Total financing (expense) income

Income before income tax expense

Income tax expense

Net income

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

Net income attributable to SunCoke Energy, Inc./net parent investment

Earnings per common share:

Basic

Diluted

Weighted average common shares outstanding:

Basic

Diluted

Assets

Cash and cash equivalents

Accounts receivable

Inventories

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

Current portion of long-term debt

Accrued liabilities

Taxes payable

Total current liabilities

Long-term debt

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

Preferred stock, $0.01 par value. Authorized 50,000 shares; no issued and outstanding shares at September 30, 2011 and December 31, 2010

Common stock, $0.01 par value. Authorized 300,000 shares; issued and outstanding 70,006 shares at September 30, 2011 and no shares outstanding at December 31, 2010

Additional paid-in capital

Accumulated other comprehensive income

Retained earnings

Net parent investment

Total SunCoke Energy, Inc. stockholders’ 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 less than (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:

Proceeds from issuance of long-term debt

Debt issuance costs

Repayment of long-term debt

Purchase of noncontrolling interest in Indiana Harbor facility

Net 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 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 revenue:

Jewell Coke

Jewell Coke intersegment sales

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 SunCoke Energy, Inc./net parent investment

Income tax expense

Net income attributable to SunCoke Energy, Inc./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

Total 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 68 thousand tons and 218 thousand tons for the third quarter and first nine 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 $163.53 and $103.68 for the third quarter of 2011 and 2010, respectively, and $151.25 and $103.70 for the first nine months of 2011 and 2010, respectively.

Mining and preparation costs for tons produced, excluding $1.9 million HKCC favorable fair value adjustment for contingent consideration in the third quarter and first nine months of 2011 and 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 $8.96 and $6.26 for the third quarter of 2011 and 2010, respectively and $8.45 and $5.94 for the first nine months of 2011 and 2010, respectively.

Net Income

Add: Depreciation, depletion and amortization

Subtract: Interest income

Add: Interest cost

Subtract: Capitalized interest

Add: Interest expense

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

Add: Interest cost

Subtract: Capitalized interest

Add: Interest expense

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