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Rhino Resource Partners, L.P. has submitted its IPO paperwork thismorning. The filing shows for $115 million proposed maximum offering price,although this number is for filing purposes only. 5 million shares representing limitedpartner interests will be listed on the NASDAQ Global Market under the ticker “RRLP.”The sole-book runner for the deal is Lehman Brothers and has been allotted 750,000in underwriting options.

Rhino Resource Partners is a limited partnership engaging incoal property control and operation with assets in Colorado,Central Appalachia, the IllinoisBasin, and NorthernAppalachia. In 2007, the company sold 8.2 million tons of coal andproduced 7.1 million tons. They sell their coal to steam and metallurgicalmarkets such as electric utility companies. Their sponsor, Wexford Capital providesaccess to potential acquisitions and manages $7 billion in assets. IncludingRhino’s assets, Wexford controls 19.7 million tons of proved and probable Coloradocoal reserves that Rhino believes will be sold to them in the future. Followingthe offering, Wexford will own an 84.6% limited interest in Rhino.

In 2006 (year ending March 31) and 2007 (year endingDecember 31), Rhino generated revenues of $363 million and $403 million,respectively, and net incomes of $31.6 million and $32.2 million respectively.As a limited partnership, nearly all earnings are distributed to shareholders tax-freeeach quarter. The company intends to use the proceeds from this offering to repayoutstanding debt of $67 million on their credit facility and to reimburse RhinoHoldings for capital expenditures.

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Rachel Lopez
April 16, 2008