1. DEBTWIRE BROADCAST: ARCH COAL VALUATION AND LEGAL ISSUES UP FOR DISCUSSION AT DEBTWIRE ROUNDTABLE January 2016 Debtwire’s team of journalists and analysts will recap Arch’s first day hearing and explore a variety of topics, including plan and valuation issues, unsecured bondholders’ legal options and game theory, as well as the company’s reclamation burden. | 13 January 2016

2. AGENDA 1.Opening Remarks: Kate Marino, Deputy Editor Kate.Marino@Debtwire.com Kate.Marino@Debtwire.com 2.The Descent: Madalina Iacob, Associate Editor & Energy Reporter Madalina.Iacob@Debtwire.com Madalina.Iacob@Debtwire.com 3.First Day Hearing: Maria Chutchian, Court Reporter Maria.Chutchian@Debtwire.com Maria.Chutchian@Debtwire.com 4.Financial Analysis: Thomas Rorick, Distressed Analyst Thomas.Rorick@Debtwire.com Thomas.Rorick@Debtwire.com 5.Court Case: Joshua Friedman, Legal Analyst Joshua.Friedman@Debtwire.com 5.Court Case: Joshua Friedman, Legal Analyst Joshua.Friedman@Debtwire.com Joshua.Friedman@Debtwire.com 6. Q & A 2

3. THE DESCENT  Arch’s Chapter 11 filing was precipitated by the collapse in coal prices, alongside low natural gas prices.  Management takes steps to right-size the balance sheet by selling assets, amending covenants and swapping unsecured debt.  The proposed debt exchange stirs a war of letters, followed by litigation, between bondholders, first lien lenders and the company.  Arch cancels the debt exchange, and three months later files with a USD 275m DIP and a plan backed by lenders. 3

4. FIRST DAY HEARING  Unsecured and second lien holders unsatisfied with RSA  DIP issues  Judge Rendlen oversees his largest Chapter 11 case 4

5. FINANCIAL ANALYSIS: ADJUSTED CAPITAL STRUCTURE 5 1)The DIP Term Loan will mature on the earliest of a) 31 January 2017, b) effectiveness of a Plan of Reorganization, c) appointment of a trustee or d) sale of substantially all assets pursuant to Section 363. The DIP Term Loan is subject to a 1.00% LIBOR floor. 2)The New First Lien Debt will bear interest at Libor+ 900bps and is subject to a 1% Libor floor. The loan will mature in five years. 3)The term loan is subject to a 1.25% floor. 4)As of the petition date, USD 178m in letters of credit were outstanding under the A/R Securitization Facility. The L/Cs outstanding are secured by eligible accounts receivable and USD 97m of cash collateral. Arch Receivable Company, LLC, a special purpose, bankruptcy-remote indirect subsidiary of Arch, is party to the A/R securitization facility. 5)We assume the company has USD 386m in total cash at emergence based on the nine month restructuring scenario outlined in a lender presentation. 6)As an estimate of reorganized Arch's equity value, we use the market value of the second lien bonds and unsecured bonds as a proxy. Sources: SEC Filings, Court Filings, Markit, MarketAxess.

6. FINANCIAL ANALYSIS: INTERIM CASH BUDGET 6 Source: Court filings.

7. FINANCIAL ANALYSIS: SOURCES & USES 7 Source: SEC filings.

8. FINANCIAL ANALYSIS: REGIONAL IS 8 Source: SEC filings.

9. FINANCIAL ANALYSIS: MGT. PROJECTIONS 9 1) Includes liquidated damages expense of USD 56m in 2015, USD 59m in 2016 and USD 62m in 2017. 2)Primarily comprised of cash posted as collateral (USD 94m), taxes, accruals (pension, benefits, workers comp, etc.), equity investments, interest income and professional fees. Source: SEC Filings.

10. VALUATION INSIGHTS: ESTIMATED RECOVERIES 10 1)We assume the company has a neglibile cash balance at 2017 year-end. 2)We discount the equity at 16%. Sources: SEC filings, Debtwire Analytics.

11. COURT CASE  RSA: Does anyone fight it?  Post-petition Financing: DIP and Securitization Program.  Union Issues: No 1113/1114, but litigation over Patriot withdrawal liability.  Potential reclamation obligation issues. 11

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