Entry into Substitute Energy Purchase Agreement

On December 21, 2016, Westmoreland Coal Company (the “Company”), via its Westmoreland Partners subsidiary, entered into a Substitute Energy Purchase Agreement (“Amending Agreement”) that amends the Consolidated Power Purchase and Operating Agreement for Roanoke Valley Units 1 and 2 (the “Facility”) with Virginia Electric and Power Company, operating in North Carolina as Dominion North Carolina Power (“Consolidated Agreement”) for the provision to sell exclusively to Dominion North Carolina Power all of the Facility’s net electrical output and dependable capacity from the Facility. Beginning March 1, 2017, the Amending Agreement adjusts the Substitute Energy and Capacity Purchase Price terms, replacing the latter with a Fixed Payment and other scheduled pricing through the end of the Term. On the Actual Deactivation Date, as such term is defined in the Amending Agreement, the Consolidated Agreement shall automatically terminate and be superseded by the Amending Agreement. After such time, the Company will not be obligated to operate the Facility in order to fulfill its contracted energy and capacity requirements.

The foregoing description of the agreement is not complete and is qualified in its entirety by reference to the definitive agreement which will be filed with the Securities and Exchange Commission.