Fact Sheet

• Second-largest eastern U.S. coal producer
• Began mining operations in 1971
• Has a high percentage of sales tied to long-term contracts
• Sold 36.7 million tons of coal in 2016
• Produces a diverse range of steam coals, satisfying a broad range of customer specifications
• Operates eight underground mining complexes in five states - Illinois, Indiana, Kentucky, Maryland and West Virginia and also operates a coal-loading terminal on the Ohio River at Mt. Vernon, Indiana
• Mining operations are near major utility generating plants
• Trades tax-advantaged, high-yield common units on the Nasdaq National Market under the symbol "ARLP"

Coal Reserves

Our coal reserve base is significant enough to preserve the Partnership's continuity over the long term. The coal reserves reported by Alliance are those that we believe can be economically and legally extracted or produced. As of December 31, 2016, ARLP had approximately 1.8 billion tons of proven and probable reserves.

Our reserve estimates are based on geological data that is analyzed by Alliance's staff of geologists and engineers. The data is gathered through extensive and ongoing exploratory drilling and in-mine channel sampling programs.

Additionally, our criteria adhere to standards as defined by the U.S. Geological Survey.

The following table defines Alliance's coal reserves as of December 31, 2016, by mining complex.

Transportation

Our coal is transported to our customers by rail, barge, and truck. Depending on the proximity of the customer to the mine and the transportation available for delivering coal to that customer, transportation costs can be a substantial part of the total delivered cost of a customer's coal. As a consequence, the availability and cost of transportation constitute important factors in the marketability of coal. We believe our mines are located in favorable geographic locations that minimize transportation costs for our customers, and in many cases we are able to accommodate multiple transportation options. Our customers typically pay the transportation costs from the mining complex to the destination, which is the standard practice in the industry. Approximately 38.2% of our 2016 sales volume was initially shipped from the mines by rail, 42.5% was shipped from the mines by barge and 19.3% was shipped from the mines by truck. In 2016, the largest volume transporter of our coal shipments was the CSX railroad, which moved approximately 23.4% of our tonnage over its rail system.