TIDMATH

RNS Number : 3473X

ATH Resources plc

14 February 2012

 
 Press Release   14 February 2012

ATH Resources plc

("ATH Resources" or the "Group")

Legacy Contracts

Following the announcement on 16 December 2011 of a renegotiation of one of its legacy contracts, ATH Resources plc (AIM: ATH), one of the UK's largest coal producers, announces that the Group has also successfully renegotiated the terms of a second legacy contract. Under the new terms of the contract which are effective from 2 January 2012, there will be an increase in the selling price per tonne in consideration for additional options being granted over future coal supply beyond the end of the current contract. This increase should assist in further alleviating the pressure on the Group's margins being caused by the recent fall in the price of coal at a time when gas oil prices are continuing to rise.

The third and final legacy contract will be fulfilled at the end of March 2012.

The Group will provide a further update on trading at its Annual General Meeting, to be held on 29 February 2012.

- Ends -

For further information:

 
 ATH Resources plc 
 David Port, Executive Chairman       Tel: +44 (0) 7836 693798 
  Alistair Black, Chief Executive    Tel: +44 (0) 1302 760 462 
                                                 www.ath.co.uk 
 
 
 Seymour Pierce Ltd 
 Sarah Jacobs (Nominated Adviser)   Tel: +44 (0) 207 107 8000 
 Richard Redmayne / Katie Ratner 
  (Broker) 
                                        www.seymourpierce.com

Media enquiries:

 
 Abchurch 
 Joanne Shears / Mark Dixon      Tel: +44 (0) 207 398 7729 
 mark.dixon@abchurch-group.com      www.abchurch-group.com

Notes to Editors

ATH Resources was listed on the AIM market of the London Stock Exchange in June 2004 and operates four surface coal mines in Scotland; Skares Road and Netherton in East Ayrshire, Glenmuckloch in Dumfries and Galloway and Muir Dean in Fife. The Group is currently one of the largest producers of coal in the UK providing coal principally to the electricity supply industry and also the industrial and house coal markets. Coal is used to generate around a third of the UK's electricity and the Group holds coal supply contracts with four of the UK's main electricity generating companies.

Further information on ATH Resources can be found at www.ath.co.uk

This information is provided by RNS

The company news service from the London Stock Exchange

END

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