The project involves developing the new Twentymile Sage Creek portal in the existing Wadge coal seam and moving the longwall. The new portal will access an additional 105 million ton northern reserve block of high-Btu, low-sulfur coal. Permits are in place for development of the longwall panel, with development work expected to begin in May of 2012.

Longwall production is anticipated in the second half of 2015. The capital investment for the

extension is expected to total approximately $200 million. “Peabody’s 9 billion ton reserve base allows us to serve long-term U.S. customer demand as well as emerging export opportunities,” said Greg Boyce, chairman and CEO, Peabody Energy. “This project builds upon nearly a half-century of Peabody operations in Colorado and a valued customer relationship with the Hayden Station.” Xcel Energy’s Hayden Generating Station in Northwest Colorado produces 446 megawatts of electricity with two units, serving more than 335,000 consumers in the state