America West Resources Signs Coal Supply Contract

SALT LAKE CITY, UT - America West Resources, Inc. reported that the Company has signed a Coal Supply Agreement with a major, multinational producer of high calcium and dolomitic lime providing for the delivery of bituminous coal mined from America West's Horizon Coal Mine in Carbon County, UT for use in operating its production facilities. The 12-month contract, which takes effect on January 1, 2009, provides for the customer to purchase up to $7.14 million in coal from America West at a flat negotiated price per ton that can be adjusted, if necessary, to provide for variances in actual heat content of coal tonnage delivered in any given month.
"When coupled with the other supply contracts we've signed over the past several months, this new agreement increases our contracted revenue potential for coal mined from Horizon to nearly $40 million over the coming year. With our subsidiary, Hidden Splendor, emerging from Chapter 11, all of our attention is now concentrated on optimizing production from Horizon and working to establish America West as one of the nation's most prolific producers of clean coal," stated Dan Baker, CEO of America West.