OVERVIEW MISSION & STRATEGY HISTORY DIRECTORS

KEY MANAGEMENT MAP OF OFFICES & OPERATIONS AWARDS

Beginning in 1992, Westmoreland commenced an intensive evaluation and review of its existing assets, operations, and business plan to identify a path that would sustain the then nearly 140 year-old company and, going forward, deliver solid, long-term value to shareholders. In 1995, the Company relocated its headquarters to Colorado Springs, Colorado in the belief that the future of coal and the best opportunities for pulling together operations of size lies with lower cost, western surface mines. The move also gave the Company the opportunity to dramatically reduce overhead costs and promote a necessary change in corporate culture and perspective to one more oriented to growth and development in a changing energy industry.

The Company guides its activities by the following Mission Statement:

There are a number of key elements to this strategy:

It is founded on the ownership and operation of physical assets...

which are low-cost producers...

and environmental leaders...

supplying similarly oriented customers in competitively advantageous niche markets...

on predictably long-term bases...

providing stable long-term earnings.

Westmoreland followed this strategic vision in acquiring the coal businesses of the Montana Power and the coal assets of Knife River Corporation in 2001. Those acquisitions have produced substantial increases in production, profits and cash flow for the Company. They also led to Westmoreland being named as a finalist by Platts/BusinessWeek for the Coal Company of the Year Award in 2001 and honored as the winner of the Strategic Merger of the Year Award in 2002.

In 2006, the Company further implemented its strategic vision by expanding its power business by acquiring the remaining 50% of the ROVA power project, giving the Company complete control of the ROVA project.

Increasing shareholder value through additional growth is one of Westmoreland’s goals. Coal is America’s most abundant fuel resource for producing electricity and it will continue to be critical to national energy strategy. Coal is the largest current contributor to the Company’s earnings. Realizing the full earnings potential of existing operations and assets, and coal and coal-fired power development, will continue to be important for Westmoreland’s growth. Future growth, however, may also include investment in other sectors of the energy industry, so long as they meet Westmoreland’s vision and strategic criteria.

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