Cloud Peak Energy Announces Strategic Alternatives Review

GILLETTE, Wyo.–(BUSINESS WIRE)–Cloud Peak Energy Inc. (NYSE:CLD), one of the largest U.S. coal
producers and the only pure-play Powder River Basin (“PRB”) coal
company, today announced that its Board of Directors, working together
with the Company’s management team and legal and financial advisors, has
commenced a review of strategic alternatives, including a potential sale
of the Company. The Company has engaged J.P. Morgan Securities LLC as
its financial advisor and Allen & Overy LLP as legal counsel in
connection with the strategic alternatives review.

Colin Marshall, President and Chief Executive Officer of Cloud Peak
Energy, commented, “While our Board is undertaking this strategic
review, Cloud Peak Energy remains focused on executing against our
operational and financial priorities. We will continue to adjust our
business to the structural changes in the U.S. coal industry and to
position our company for future growth opportunities.”

The Company’s Board of Directors has not made any decisions related to
any transactions at this time and there can be no assurance that the
exploration of strategic alternatives will result in any transaction.
The Board has not set a specific timetable for its process and the
Company does not intend to provide updates unless or until it determines
that further disclosure is appropriate or necessary. In connection with
this strategic review process, the Compensation Committee of the Board
approved an executive retention program through July 2020 for the senior
management team, as further described in the Company’s Form 8-K filed
today.

About Cloud Peak Energy®

Cloud Peak Energy Inc. (NYSE:CLD) is headquartered in Wyoming and is one
of the largest U.S. coal producers and the only pure-play Powder River
Basin coal company. As one of the safest coal producers in the nation,
Cloud Peak Energy mines low sulfur, subbituminous coal and provides
logistics supply services. The Company owns and operates three surface
coal mines in the PRB, the lowest cost major coal producing region in
the nation. The Antelope and Cordero Rojo mines are located in Wyoming
and the Spring Creek Mine is located in Montana. In 2017, Cloud Peak
Energy sold approximately 58 million tons from its three mines to
customers located throughout the U.S. and around the world. Cloud Peak
Energy also owns rights to substantial undeveloped coal and
complementary surface assets in the Northern PRB, further building the
Company’s long-term position to serve Asian export and domestic
customers. With approximately 1,300 total employees, the Company is
widely recognized for its exemplary performance in its safety and
environmental programs. Cloud Peak Energy is a sustainable fuel supplier
for approximately two percent of the nation’s electricity.

Cautionary Note Regarding Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of
the safe harbor provisions of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements are not statements of historical facts and often contain
words such as “may,” “will,” “expect,” “believe,” “anticipate,” “plan,”
“estimate,” “seek,” “could,” “should,” “intend,” “potential,” or words
of similar meaning. Forward-looking statements are based on management’s
current expectations, beliefs, assumptions and estimates regarding our
company, industry, economic conditions, government regulations and
energy policies and other factors. Forward-looking statements may
include, for example, statements regarding the Board of Directors’
strategic evaluation process, our operational and financial priorities,
our responses to the structural changes in the U.S. coal industry, our
efforts to position our company for future growth opportunities, and
other statements regarding our plans, strategies, prospects and
expectations concerning our business, operating results, financial
condition, liquidity and other matters that do not relate strictly to
historical facts. These statements are subject to significant risks,
uncertainties, and assumptions that are difficult to predict and could
cause actual results to differ materially and adversely from those
expressed or implied in the forward-looking statements, including risks
and uncertainties regarding the potential timing, benefits and outcome
of the Board’s strategic evaluation process and risks and uncertainties
associated with any potential strategic transaction. Forward-looking
statements are also subject to the risk factors and cautionary language
described from time to time in the reports and registration statements
we file with the Securities and Exchange Commission, including those in
Item 1A – Risk Factors in our most recent Form 10-K and any updates
thereto in our Forms 10-Q and current reports on Form 8-K. Additional
factors, events, or uncertainties that may emerge from time to time, or
those that we currently deem to be immaterial, could cause our actual
results to differ, and it is not possible for us to predict all of them.
We make forward-looking statements based on currently available
information, and we assume no obligation to, and expressly disclaim any
obligation to, update or revise publicly any forward-looking statements
made in this release, whether as a result of new information, future
events or otherwise, except as required by law.

Contacts

Cloud Peak Energy Inc.
John Stranak, 720-566-2932
Investor
Relations

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