24 APRIL 2014

REVISED PRODUCTION FORECAST FOR FY2014


Whitehaven Coal Limited (ASX Code: WHC) wishes to announce revised production guidance for FY2014. The company's full year guidance for saleable coal production on a 100% basis for FY2014 was 10.7Mt. Following an operational issue at Narrabri and an adjustment arising from previously disclosed geotechnical challenges at Rocglen, the company is now expecting to produce between 9.8Mt and 10.0Mt of saleable coal on a 100% basis for the full year.
Mining in the third longwall panel at Narrabri commenced on schedule in early March and was ramped up to full production. The configuration of longwall panel three installation differed to that of longwall panels one and two in that two (2) additional roof supports were added to the tailgate end of the longwall. This modification was made to improve safety and reduce costs by eliminating the need to install additional secondary support in the tailgate roadway as had been installed in longwall panels one and two.
As the longwall retreat progressed with this revised configuration, the floor horizon control at the tailgate end of the longwall face-line was 'lost' resulting in a difference between the floor levels of the longwall face-line and the tailgate development roadway. At this point management took the decision to stop production.
Following an evaluation of the status of the longwall by management, external advisors and OEM support, a recovery plan was developed and implemented. It was expected that the recovery plan would be completed safely within a timeframe so as not to impact the company's ability to meet forecast ROM production of 5.5Mt (100% basis) from the Narrabri mine. However, changing conditions have led to a revision of the recovery plan timetable which now envisages a return to longwall production in 2-3 weeks. As a result, Narrabri's ROM coal production on a 100% basis for FY2014 has been reforecast to be in the range of 4.8Mt to 5.0Mt.
The costs of the recovery plan are not expected to be material.
Appropriate controls to mitigate a recurrence of this event have been implemented and discussions are continuing with the longwall supplier about control systems for consistent horizon control when cutting the tailgate end of the longwall face.

Whitehaven's Managing Director and CEO, Paul Flynn said "we are confident that the recovery plan currently being executed will deliver a return to production in the indicated timeframe. All necessary resources have been committed to resolving the issue expeditiously and the Narrabri team is being supported by the appropriate external service providers. Our priority is the safety of our people as we return to normal operations."

FOR FURTHER INFORMATION, PLEASE CONTACT:

Michael Van Maanen - Media Ian McAleese - Investor Relations
M: 0412 500 351 T: 61 2 8507 9714 M: 61 427 227 530
E: Michael.vanmaanen@newgatecomms.com.auE: imcaleese@whitehavencoal.com.au

Revised Production Forecast

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