GENERAL35545

• Permit No: C1981013
• IBM Index Class Name: General Documents
• Doc Date: 5/24/2007
• Doc Name: Request to Update AVS
• From: Ann Tatum
• To: Davis Graham & Stubbs LLC
• Permit Index Doc Type: General Correspondence
• Media Type: D
• Archive: No

RECEIVED
MAY 2 4 2007
Division of Keclamation, Exhibit 99.1
Mining and Safety
Westmoreland Coal Company 2 N. Cascade Ave.,14th Floor
[phone] -Telephone Colorado Springs, CO 80903
[phone] -Fax
Westmoreland Plaos Rights Offering;
Appoints Interim CEO
Colorado Springs, CO -May 2, 2007 -Westmoreland Coal Company (AMEX:WLB) announced today its plans to
conduct a rights uttering, wrth a minmtum srm of $x5 million, of common stoc$ to its shareholders. The subscription price
for the rights offering will be $18.00 per shaze:
Ia connection with the proposed rights offering, the Company also announced that it has entered into a standby purchase
agreement with Tontine Capital Partners, L.P., which together with its affiliates currently owns 17.1 percent of the
Company's outstanding shares. Pursuant to this agreement, Tontine has agreed to provide the Company with a "backstop" ,
commitment to exercise any rights remaining unexetvised a[ the close of the rtshu offering, provided that Its ownership does
not exceed 30 percent of the fully diluted shares after the rights offerting. In the event that Tontine's ownership after the rights
offering,is less than 25 percent of the fully diluted shazes, Tontine will have the option to purchase additional shares at the
subscription price that could raise its ownership in the Company to 25 percent of the fully diluted shams.
Proceeds from the rights offering will be used to fund capital expenditures that are expected to lower the Company's coal
mining prvduuriun wsls, fwrd future gruwdt initiatives and provide working capital, as well as for general wrporatc
purposes.
Ae part of the transaction, the Company intends to retire its outstanding Series A Conveetible Facchangeable preferred Stock
each share of which is represented by four depositary shares, and the Company is evaluating options to achieve this objective.
Tha Company intends to use a portion of the proceeds from the rights offering to redeem the depositary shares that ere
uutstaudiag at the conclusion of the rights offering. ~
Pursuant to the agreement between the Company and Tontine, Tontine has the right to appoint two individuals to the
r_ompany's Rnard of flirectnrs, and the Company has agreed to limit the number of directors to seven:
Robert E. Kitlcn, the Company's Vice-Chairman, said: ""1he Board of Directors views the rights offering as a landmazk event
in the Company's Ions history, If the rights offering is completed, Ute cash infiuion will eliminate the Company's near-term
liquidity concerns, provide far cost improvement oppornnities, expand mine capacity and create flexibility in the
development of new business projects. Of additional significance will be the retirement of the outstanding preferred stock,
which the Company Views as an important step towards Simplifying the Company's capital structure "
0 Westrnoreiand News ftetease
-.,
Fage l of 3
May 2, 2007

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