COAL OVERVIEW WESTMORELAND MINING

WESTMORELAND RESOURCES WESTMORELAND COAL SALES

The Company's mining operations include Westmoreland Mining LLC, which through its subsidiaries, operates four mining complexes, and Westmoreland Resources, Inc., which operates the Absaloka Mine. The mining operations are described below.

The Company's five surface mine complexes enjoy significant transportation and logistical advantages to their principal customers, which reduce exposure to competition, and long-term coal sales contracts promote stable long-term earnings and cash flows. All but one of Westmoreland's mines are located adjacent to, or only a short conveyor, truck or rail haul from, their primary customers. In 2009, the Company's four largest sales contracts accounted for 70% of total coal revenue. Approximately 99% of the Company's 2009 production was sold under long-term contracts of one year or greater which, as they expire, are anticipated to be followed by extensions, new contracts or spot sales at prices reflecting then current market conditions. Pricing can also change periodically under existing contracts as a result of adjustment provisions for cost and market variances.

Safety
Safety is Westmoreland's number one priority. The Company maintains active safety programs at all of its mines that focus on 100% compliance utilizing safe practices, safety rules and regulations.

The Savage Mine completed eight years without a lost time incident. The Jewett Mine finished the year without a lost time incident as well. The Absaloka and Beulah Mines had only one incident each. We have implemented a behavior-based safety program at the Rosebud Mine, to bring its safety record back to zero incidents, as we achieved in 2005 with all of our mines.

Protection of the Environment
Westmoreland is committed to operating in a manner which is both lawful and designed to protect the environment. This involves the proper planning, permitting and monitoring of mining activities to assure compliance with applicable standards. The reclamation of mined lands is also an important objective of each mining complex.

Reclamation activities consist of filling the voids created during coal removal, replacing sub-soils and top-soils and then re-establishing the vegetative cover. At the conclusion of reclamation activities, the area disturbed by mining will look similar to what it did before mining begun.

The Company also addresses the impacts the mining operations have on wildlife habitat and on sites with cultural significance. At the Jewett Mine, the mining plan preserves the nesting area on the Interior Least Tern, a bird threatened in the region. The Rosebud Mine has altered its mining plan to preserve Native American petroglyphs on rock formations. Similar culturally significant sites have been excavated by trained archeologists. Historic buildings on mine property have been moved to preserve them.

Westmoreland endeavors to operate as good environmental stewards, citizens, and neighbors.

In 2005, our Rosebud Mine received the National Award for Excellence in Surface Mining from the Office of Surface Mining and Enforcement ("OSM") of the U.S. Department of the Interior ("DOI") for its innovative final pit reclamation engineering design. The design preserved and blended native topographic features that include several steep slopes, sandstone cliffs and rock outcrops. The reclamation design also minimized disturbance, approximated the original landscape, and reduced impact to fish, wildlife, vegetation and other environmental assets. Pursuant to this innovative design, approximately 5,000 mature ponderosa pine trees and associated plant and animal species were left undisturbed.

Coal Operations Table

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