Alliance Resource Partners, L.P. Announces Resumption of Hopkins County Coal Operations

Business Wire, Sept 2, 2004

TULSA, Okla. -- Alliance Resource Partners, L.P. (Nasdaq:ARLP) (the "Partnership") today announced plans to resume operations at the Newcoal surface mine, which was idled by its wholly-owned subsidiary, Hopkins County Coal, LLC, in June 2003. (See ARLP Press Releases dated April 3 and June 2, 2003.) The decision to re-open the Newcoal surface mine is in response to incremental sales opportunities from the Partnership's existing customers as well as the continued strong market demand for Illinois Basin region coals.

The surface operation will utilize dragline mining to produce approximately 70,000 tons per month of high-sulfur coal. Hopkins County Coal, which is located near Madisonville, Kentucky, is expected to begin production within 30 days and employ approximately 66 miners. The Newcoal surface mine has remaining coal reserves of approximately 1.1 million tons. It is anticipated that production from the Newcoal surface mine will be shipped via the CSX and PAL railroads and by truck on federal and state highways.

As a result of the resumption of operations at Hopkins County Coal, the Partnership is increasing its estimated production for 2004 and 2005 to 20.8 million tons and 22.1 million tons, respectively.

Alliance Resource Partners is the nation's only publicly traded master limited partnership involved in the production and marketing of coal. Alliance Resource Partners currently operates mining complexes in Illinois, Indiana, Kentucky and Maryland.

FORWARD-LOOKING STATEMENTS: With the exception of historical matters, any matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projected results. These risks, uncertainties and contingencies include, but are not limited to, the following: competition in coal markets and our ability to respond to the competition; fluctuation in coal prices, which could adversely affect our operating results and cash flows; deregulation of the electric utility industry or the effects of any adverse change in the domestic coal industry, electric utility industry, or general economic conditions; dependence on significant customer contracts, including renewing customer contracts upon expiration of existing contracts; customer bankruptcies and/or cancellations of, or breaches to existing contracts; customer delays or defaults in making payments; fluctuations in coal demand, prices and availability due to labor and transportation costs and disruptions, equipment availability, governmental regulations and other factors; our productivity levels and margins that we earn on our coal sales; any unanticipated increases in labor costs, adverse changes in work rules, or unexpected cash payments associated with post-mine reclamation and workers' compensation claims; any unanticipated increases in transportation costs and risk of transportation delays or interruptions; greater than expected environmental regulation, costs and liabilities; a variety of operational, geologic, permitting, labor and weather-related factors; risks of major mine-related accidents or interruptions; results of litigation; difficulty maintaining our surety bonds for mine reclamation as well as workers' compensation and black lung benefits; difficulty obtaining commercial property insurance; and risks associated with our 10.0% participation (excluding any applicable deductible) in the commercial insurance property program.

Additional information concerning these and other factors can be found in the Partnership's public periodic filings with the Securities and Exchange Commission ("SEC"), including the Partnership's Annual Report on Form 10-K for the year ended December 31, 2003 filed on March 12, 2004 with the SEC. Except as required by applicable securities laws, the Partnership does not intend to update its forward-looking statements.