Lipari Energy, Inc.
TSX : LIP

Lipari Energy, Inc.

July 14, 2011 15:34 ET

Lipari Energy Announces Second Quarter 2011 Coal Production

TORONTO, ONTARIO--(Marketwire - July 14, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA OR THROUGH U.S. NEWSWIRE SERVICES

Lipari Energy, Inc. (TSX:LIP) ("Lipari" or the "Company"), a thermal coal producer with current operations and additional development properties in the Central Appalachian region of the United States, announced its unaudited production results for the second quarter of 2011.

Second quarter 2011 coal sales increased 12.3% over second quarter 2010 to 321,474 tons and increased 22.1% over first quarter 2011 coal sales of 263,385 tons.

"We are very pleased with our Q2 operating performance," said John Liperote, CEO of Lipari Energy, Inc. "Increased throughput driven by an improvement in weather as well as advancement in our mine planning have led to a significant increase in year-over-year coal sales. We remain on schedule to reach company guidance of approximately 1.3 million tons of saleable coal production in 2011."

A quarter over quarter production comparison is shown below:

Q2 2011 Q2 2010 Q1 2011
Tons sold 321,474 286,149 263,385
Production 301,625 240,057 286,424

Coal Sales Guidance

Lipari re-affirmed its 2011 coal sales guidance of 1.3 million tons, representing a 47.6% increase from 2010 production of 880,618 tons. Lipari has sales commitments in place for 90% of its planned 2011 production and approximately 65% of its planned 2012 production at prices averaging approximately $73 per ton in 2011 and $75 per ton in 2012. The Company expects that the balance of its production will be sold on the open market at prevailing market rates.

Tons
(000s)
Average Price
($/ton)
% of Planned
Total Production
Committed Saleable Production
2011 1,300 $73 90%
2012 1,450 $75 65%

About Lipari Energy:

Lipari is a thermal coal producer with current operations and additional development properties in the Central Appalachian region of the United States. Lipari has been in production since 2008 and has diversified surface and highwall mining operations. Lipari coal sales are predominantly to utilities through a mix of forward contracts and short-term sales. Lipari's growth strategy includes continued growth of its organic reserves through its enhanced drilling program, as well as from its focused and disciplined approach to strategic acquisitions. Lipari's corporate office is located in London, Kentucky.

This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:. This news release contains "forward-looking information" that includes information relating to future events and future financial and operating performance, including management's assessment of Lipari's future outlook. Forward-looking information should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking information is based on information available at the time it is made and/or management's good faith belief as of that time with respect to future events, and such information is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking information. Important factors that could cause these differences include but are not limited to: changes in contracted sales, the business of the Company may suffer as a result of uncertainty surrounding the coal market; the Company may be adversely affected by other economic, business, and/or competitive factors; the worldwide demand for coal; the price of coal; the price of alternative fuel sources; the supply of coal and other competitive factors; the costs to mine and transport coal; the ability to obtain new mining permits; the costs of reclamation of previously mined properties; the risks of expanding coal production; the ability to bring new mines on line on schedule; industry competition; the Company's ability to continue to execute its growth strategies; and general economic conditions. These and other risks are more fully described in the Company's filings with the Canadian Securities Administrators, including its Annual Information Form for the year ended December 31, 2010, available on SEDAR at www.sedar.com. You should not put undue reliance on any forward-looking information. We assume no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking information, no inference should be drawn that we will make additional updates with respect to those or other forward-looking information.

Contact Information

  • Lipari Energy Inc.
    Richard Liperote
    President
    606-877-1800

    TMX Equicom
    Patrick Piette
    416.815.0700 ext 267
    ppiette@equicomgroup.com