Xinergy announces Coal Supply Agreement with J.P. Morgan

Toronto Stock Exchange: XRG
(All Amounts in $US unless otherwise stated)

KNOXVILLE, TN, July 15, 2011 /PRNewswire/ - Xinergy Ltd., (TSX: XRG and XRG.WT) ("Xinergy" or the "Company"), a US Central Appalachian producer of high quality coal, today announced that its wholly owned subsidiary, Xinergy Corp. has signed a long term coal supply agreement (the "Agreement") with J.P. Morgan Ventures Energy Corporation ("J.P. Morgan") for the delivery period beginning January 1, 2012 through December 31, 2014.  The Agreement indicates 2,160,000 total thermal tons or 720,000 tons per year from the company's Raven Crest/Brier Creek mines in West Virginia.

The specifics of the agreement represent a minimum aggregate value of approximately $170 million in revenue over the term with significant upside based on future pricing indices.  The pricing is variable based on index and under certain circumstances fuel cost adjustments.

"We are pleased to have secured this coal supply agreement with J.P. Morgan which significantly increases our contracted tonnage and revenue for future years," said Michael R. Castle, Xinergy's Chief Financial Officer.  "This agreement is consistent with our plans to develop our Brier Creek underground reserves, significantly increase our thermal production in West Virginia, broaden our customer base and create shareholder value".

About Xinergy Ltd.

Headquartered in Knoxville, Tennessee, Xinergy Ltd., through its wholly owned subsidiary Xinergy Corp. and its subsidiaries, is engaged in coal mining in eastern Kentucky and West Virginia. Currently, Xinergy sells high quality coal to electric utilities and industrial companies throughout the south-eastern United States. For more information, please visit www.xinergycorp.com.

Forward-Looking Information

This release contains "forward-looking information" that includes information relating to future events and future financial and operating performance, including management's assessment of Xinergy's future outlook.  Forward-looking information should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking information is based on information available at the time it is made and/or management's good faith belief as of that time with respect to future events, and such information is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking information. Important factors that could cause these differences include but are not limited to: changes in contracted sales, the business of the Company may suffer as a result of uncertainty surrounding the coal market; the Company may be adversely affected by other economic, business, and/or competitive factors; the worldwide demand for coal; the price of coal; the price of alternative fuel sources; the supply of coal and other competitive factors; the costs to mine and transport coal; the ability to obtain new mining permits; the costs of reclamation of previously mined properties; the risks of expanding coal production; the ability to bring new mines on line on schedule; industry competition; the Company's ability to continue to execute its growth strategies; and general economic conditions. These and other risks are more fully described in the Company's filings with the Canadian Securities Administrators, including its Annual Information Form for the year ended December 31, 2010, available on SEDAR at www.sedar.com. You should not put undue reliance on any forward-looking information. We assume no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking information, no inference should be drawn that we will make additional updates with respect to those or other forward-looking information.

SOURCE Xinergy Ltd.

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