Westmoreland Savage Enters into New Long-Term Supply Agreement

Westmoreland Coal Company (NasdaqGM:WLB) today announced that its
Westmoreland Savage Corporation subsidiary, which owns the Savage Mine
in Sidney, Montana, has amended its lignite supply agreement with one of
its long-time customers Montana-Dakota Utilities Co., a division of MDU
Resources Group, Inc. The amendment extends the term of the original
agreement for the supply of lignite to the Lewis & Clark Station through
December 31, 2017. The contract provides that the Savage Mine will
continue to provide Lewis & Clark Station its lignite requirements on an
annual basis, which has historically been approximately 300,000 tons a
year.

'Westmoreland is pleased that we were able to work collaboratively with
our long-time customer at the Savage Mine to extend the term of the
contract for another five years,? commented Robert P. King, President
and Chief Operating Officer. 'This extension is significant for the
Savage Mine and provides for increased profitability for this operation
and improved quality for the customer.?

About Westmoreland Coal Company

Westmoreland Coal Company is the oldest independent coal company in the
United States. The Company′s coal operations include coal mining in the
Powder River Basin in Montana, sub-bituminous mining in Wyoming, and
lignite mining operations in Montana, North Dakota and Texas. Its power
operations include ownership of the two-unit ROVA coal-fired power plant
in North Carolina. For more information, visit www.westmoreland.com.

Westmoreland Coal Company

Kevin Paprzycki, 855-922-6463