This summary highlights selected information from this proxy statement/prospectus and may not contain all the information that is important to you. To understand the transaction fully and for a more complete description of the legal terms of the transaction, you should carefully read this entire proxy statement/prospectus and the other documents to which we refer you, including, in particular, the copies of the merger agreement, the voting agreement and the opinions of Lehman Brothers and Duff & Phelps, LLC that are attached to this proxy statement/prospectus as Annexes A, B, C and D, respectively. See also “Where You Can Find More Information” on page 243. We have included page references to direct you to a more complete description of the topics presented in this summary. References in this proxy statement/prospectus to “you” refer to Patriot stockholders and references to “we” or “us” refer to Patriot. References in this proxy statement/prospectus to Patriot refer to Patriot Coal Corporation and its subsidiaries, and references to Magnum refer to Magnum Coal Company and its subsidiaries, in each case, unless the context otherwise requires.

Patriot has entered into an Agreement and Plan of Merger dated as of April 2, 2008, referred to herein as the merger agreement, with Magnum Coal Company, Colt Merger Corporation, which is a wholly owned subsidiary of Patriot, and ArcLight Energy Partners Fund I, L.P. and ArcLight Energy Partners Fund II, L.P., acting jointly, as stockholder representative. Pursuant to the merger agreement, at the effective time of the merger, Colt Merger Corporation will merge with and into Magnum, and as a result Magnum will become a wholly owned subsidiary of Patriot. If the merger is completed, the issued and outstanding shares of the common stock of Magnum will be converted into the right to receive up to 11,901,729 shares of the common stock, par value $0.01 per share, of Patriot, subject to downward adjustment in limited circumstances.

Immediately following execution and delivery of the merger agreement, stockholders of Magnum representing approximately 99% of the outstanding shares of Magnum common stock executed written consents approving the merger agreement and the merger. No further vote or approval of the stockholders of Magnum is required in connection with the consummation of the merger.

Based on the number of shares of Patriot common stock outstanding on the date of the merger agreement, the Patriot common stock issuable to the holders of Magnum common stock in the merger represents approximately 31% of the sum of the number of outstanding shares of Patriot common stock as of the date of the merger agreement plus the number of shares of Patriot common stock to be issued in the merger. In this proxy statement/prospectus, we sometimes refer to the ownership of Patriot common stock relative to the sum of the number of outstanding shares of Patriot common stock as of the date of the merger agreement plus the number of shares of Patriot common stock to be issued in the merger as ownership on a “pro forma” basis for the issuance in the merger. In addition, references to percentage ownership by any Magnum stockholder or group of Magnum stockholders of Patriot common stock on a pro forma basis for the issuance in the merger are based upon the application of certain assumptions described in “The Merger — Financing Arrangements — Magnum Convertible Notes Issuance.” Upon consummation of the merger, Magnum’s largest stockholders, ArcLight Energy Partners Fund I, L.P. and ArcLight Energy Partners Fund II, L.P. (which we refer to together as the ArcLight Funds), will collectively hold approximately 16.9% of Patriot common stock on a pro forma basis for the issuance in the merger, and will be Patriot’s largest stockholder.

The board of directors of Patriot recommends a vote “FOR” approving the issuance of Patriot common stock to the holders of Magnum common stock pursuant to the merger agreement.

Lehman Brothers delivered its opinion to Patriot’s board of directors that as of April 2, 2008, and based upon and subject to the factors and assumptions set forth in the opinion, from a financial point of view, the consideration to be paid by Patriot in the merger is fair to Patriot. The full text of the written opinion of Lehman Brothers, dated April 2, 2008, which sets forth the assumptions made, procedures followed, matters considered and limitations on the review undertaken in connection with the opinion, is attached as Annex C to this proxy statement/prospectus. Patriot stockholders are encouraged to read the opinion in its entirety. Lehman Brothers provided its opinion for the information and assistance of the Patriot board of directors in connection with its consideration of the transaction. The Lehman Brothers opinion is not a recommendation as to how any holder of Patriot common stock should vote with respect to the transaction.

Duff & Phelps, LLC delivered its opinion to Patriot’s board of directors that as of April 2, 2008, and based upon and subject to the factors and assumptions set forth in the opinion, the consideration to be paid by Patriot in the merger is fair, from a financial point of view, to Patriot. The full text of the written opinion of Duff & Phelps, dated April 2, 2008, which sets forth the assumptions made, procedures followed, matters considered and limitations on the review undertaken in connection with the opinion, is attached as Annex D to this proxy statement/prospectus. Patriot stockholders are encouraged to read the opinion in its entirety. Duff & Phelps provided its opinion for the information and assistance of the Patriot board of directors in connection with its consideration of the transaction. The Duff & Phelps opinion is not a recommendation as to how any holder of Patriot common stock should vote with respect to the transaction.

Patriot’s officers and directors own Patriot common stock and have been granted certain equity-based incentive awards, none of which will vest or be adjusted or otherwise changed as a result of the merger. Except for the interests inherent in the ownership of Patriot common stock and these equity awards, Patriot’s officers and directors do not have any material interests that arise as a result of the merger.

The officers, directors and certain affiliates of Magnum may have interests in the merger that differ from other stockholders of Magnum.

The rights of Patriot stockholders, which are currently governed by Patriot’s certificate of incorporation, Patriot’s by-laws, the Rights Agreement dated as of October 22, 2007, as amended, between Patriot and American Stock Transfer & Trust Company, as rights agent, which we refer to in this proxy statement/prospectus as the rights agreement, and Delaware law, will not be affected by the merger. Magnum stockholders, whose rights are currently governed by Magnum’s certificate of incorporation, Magnum’s by-laws, Delaware law and, for certain Magnum stockholders, a Stockholders Agreement, dated as of March 21, 2006, among Magnum and the investors party thereto, will, upon completion of the merger, become stockholders of Patriot and their rights will be governed by the Patriot certificate of incorporation, the Patriot by-laws, Patriot’s rights agreement, Delaware law and, for certain Magnum stockholders, the voting agreement (described below).

The special meeting of Patriot stockholders will be held on July 22, 2008 at 10:00 a.m., local time, at the Donald Danforth Plant Science Center at 975 North Warson Road, St. Louis, MO 63132. At the special meeting, Patriot stockholders will be asked to vote on the proposal to approve the issuance of Patriot common stock to the holders of Magnum common stock pursuant to the merger agreement and to transact such other business as may properly come before the meeting.

Patriot stockholders are entitled to vote at the special meeting if they owned shares of Patriot common stock at the close of business on June 16, 2008, the record date. On the record date, there were approximately 26,755,877 shares of Patriot common stock outstanding. Stockholders will be entitled to one vote for each share of Patriot common stock that they owned on the record date on all matters submitted to a vote at the special meeting.

The approval of the issuance of Patriot common stock to the holders of Magnum common stock pursuant to the merger agreement requires the affirmative vote of a majority of the votes cast by all stockholders at the special meeting where the total vote cast represents over fifty percent in interest of the Patriot common stock entitled to vote on the issuance. The presence at the special meeting, in person or by proxy, of stockholders entitled to cast at least a majority of the votes that all stockholders are entitled to cast at the special meeting will constitute a quorum, which is necessary to hold the meeting.

On the record date, directors and executive officers of Patriot beneficially owned and were entitled to vote, in the aggregate, approximately 325,073 shares of Patriot common stock, which represented approximately 1.215% of the shares of Patriot common stock outstanding on the record date. The directors and executive officers of Patriot have informed Patriot that they intend to vote all of their shares of Patriot common stock “FOR” approval of the issuance of Patriot common stock to the holders of Magnum common stock pursuant to the merger agreement.

Holders of Patriot common stock will not recognize gain or loss for United States federal income tax purposes as a result of the merger.

Assuming the merger qualifies as a reorganization under Section 368(a) of the Internal Revenue Code of 1986, as amended, which we refer to as the Code, holders of Magnum common stock generally will not recognize gain or loss upon the exchange of their Magnum common stock for Patriot common stock. Although the merger has been structured and is intended to qualify as a reorganization, neither Magnum nor Patriot has sought an opinion of counsel or intends to request a ruling from the Internal Revenue Service, which we refer to as the IRS, as to the United States federal income tax consequences of the merger. Consequently, no assurance can be given that the IRS will not assert, or that a court would not sustain, a position contrary to any of those set forth below in “Material United States Federal Income Tax Consequences of the Merger.” Magnum stockholders should consult their tax advisors regarding the foreign, United States federal, state or local tax consequences of the merger.

The merger agreement is attached as Annex A to this proxy statement/prospectus. We encourage you to read the merger agreement carefully and in its entirety because it is the principal document governing the merger.

Patriot and Magnum are obligated to complete the merger only if certain conditions precedent are satisfied, including the following:

In addition, Patriot is obligated to complete the merger only if the following additional conditions are satisfied:

The merger agreement may be terminated and the merger abandoned at any time prior to the effective time, even after receipt of Patriot stockholder approval for the issuance of Patriot common stock to the holders of Magnum common stock.

The merger agreement may be terminated:

If the merger agreement is terminated because:

The merger agreement contains indemnification rights for the benefit of Patriot for damages resulting from breaches of Magnum’s representations and warranties, breaches of Magnum’s covenants, any demands for appraisal from holders of Magnum common stock, any lawsuits brought by holders of Magnum common stock or holders of Magnum convertible notes (described below) and any transaction expenses incurred by Magnum in excess of the sum of $4 million and the amounts paid to Magnum’s financial advisor with respect to the merger. Ten percent of the shares of Patriot common stock to be issued in the merger will be placed in escrow for one year to provide indemnification to Patriot. The shares of Patriot common stock that will be placed in escrow will be deducted from the shares otherwise issuable to certain stockholders of Magnum who have agreed to be responsible to Patriot for certain indemnification obligations. We refer to these Magnum stockholders as the designated stockholders. The designated stockholders own approximately 99% of Magnum’s issued and outstanding common stock. Subject to certain exceptions, indemnification for breaches of Magnum’s representations and warranties is subject to a $100,000 per claim de minimis exception and a $6 million aggregate deductible. Subject to certain exceptions, indemnification for breaches of Magnum’s representations and warranties and breaches of Magnum’s covenants is capped at the number of shares of Patriot common stock held in escrow. The designated stockholders of Magnum have also agreed to be directly liable with respect to breaches of certain limited representations, warranties and covenants, appraisal demands, Magnum stockholder or noteholder lawsuits and excess transaction expenses, subject to a cap equal to the net proceeds received by the designated stockholders in the merger.

The merger agreement contains indemnification rights for the benefit of the stockholders of Magnum for damages resulting from breaches of Patriot’s representations and warranties and breaches of Patriot’s covenants. Subject to certain exceptions, indemnification for breaches of Patriot’s representations and warranties is subject to a $100,000 per claim de minimis exception, a $6 million deductible and is capped at $54 million, provided that with respect to breaches of certain limited representations and warranties, Patriot’s indemnification obligations are capped at $534 million, the approximate market value of Patriot common stock, as of the date of the merger agreement, to be received by the designated stockholders in the merger. The rights of the stockholders of Magnum to pursue indemnity claims are subject to certain limitations, including the requirement that these claims must be brought by the stockholder representative on behalf of the Magnum stockholders. The indemnification provisions of the merger agreement are generally the sole remedy for Patriot and the designated stockholders with respect to breaches of the merger agreement by Magnum and Patriot, respectively.

The merger agreement provides that, except as required by applicable law, the board of directors of Patriot may not (1) withhold, withdraw, qualify, modify or amend (or publicly propose or resolve to do any of the foregoing) its recommendation that the Patriot stockholders approve the issuance of the Patriot common stock issuable to the holders of Magnum common stock in the merger or (2) approve or recommend, or publicly propose to approve or recommend, any agreement or transaction, or cause or permit Patriot to enter into any agreement requiring Patriot to abandon, terminate or fail to consummate the transactions contemplated by the merger agreement or breach its obligations or resolve, propose or agree to do any of the

Subject to the terms and conditions of the merger agreement, Patriot and Magnum have agreed to use their respective commercially reasonable efforts to take all actions and to do all things necessary, proper or advisable under applicable law to consummate the transactions contemplated by the merger agreement, including preparing and making all filings and notices with any applicable governmental authority or third party in connection with the merger and obtaining all approvals, consents and other confirmations required to be obtained from any governmental authority or third party that are necessary, proper or advisable to consummate the transactions contemplated by the merger agreement. Neither Patriot nor Magnum is required to enter into any settlement or agreement with any governmental authority or to divest or hold separate any of its businesses, assets or properties.

United States antitrust laws prohibit Patriot and Magnum from completing the merger until they have furnished certain information and materials to the Antitrust Division of the Department of Justice and the Federal Trade Commission under the HSR Act, and a required waiting period has ended. Patriot and Magnum filed the required notification and report forms with the Antitrust Division of the Department of Justice and the Federal Trade Commission on April 30, 2008. In addition, each of the ArcLight Funds and the parent of Cascade Investment, L.L.C., similarly filed notification and report forms on April 30, 2008 in respect of the acquisition by such Magnum stockholders of Patriot common stock in the merger. On May 12, 2008, the Federal Trade Commission granted early termination of the HSR Act waiting period relating to the filings by each of Patriot, Magnum, the ArcLight Funds and the parent of Cascade Investment, L.L.C.

In connection with the merger agreement, Patriot obtained a subordinated bridge financing commitment of up to $150 million from the ArcLight Funds to be used by Patriot at the effective time of the merger to repay a portion of the senior secured indebtedness of Magnum and to pay related fees and expenses. On May 28, 2008, Patriot completed a private offering of $200 million in aggregate principal amount of 3.25% Convertible Senior Notes due 2013, which we refer to as the Patriot convertible notes. Following the consummation of the offering of the Patriot convertible notes, Patriot terminated the ArcLight Funds’ financing commitment on May 30, 2008. Patriot paid an aggregate of $1.5 million in commitment fees to the ArcLight Funds in connection with the financing commitment. As a result of the consummation of the offering of the Patriot convertible notes, the closing condition relating to Patriot’s consummation of the ArcLight financing or an alternate financing has been satisfied.

On March 26, 2008, Magnum issued $100 million in aggregate principal amount of its 10% Senior Subordinated Convertible Notes due 2013, which we refer to as the Magnum convertible notes, to certain of its existing stockholders and used the proceeds of such issuance to repay $100 million of the senior secured indebtedness of Magnum. The Magnum convertible notes, including any interest that has been added to the principal thereof and any accrued and unpaid interest thereon, will be converted into Magnum common stock immediately prior to the effective time of the merger. The 11,901,729 shares of Patriot common stock to be issued to the holders of common stock of Magnum pursuant to the merger agreement include the shares of Patriot common stock to be issued in respect of the Magnum common stock issued upon the conversion of the Magnum convertible notes.

The outstanding senior secured indebtedness of Magnum (other than capital leases) at the effective time of the merger will be repaid (or defeased, in the case of certain letters of credit) with proceeds from the offering of Patriot convertible notes and/or unrestricted cash or cash equivalents of Magnum.

Except as described above, Patriot and Magnum will each pay its own fees and expenses in connection with the merger.

In connection with the merger agreement, Patriot, ArcLight Energy Partners Fund I, L.P. and ArcLight Energy Partners Fund II, L.P., acting jointly, as stockholder representative, and certain stockholders of Magnum entered into a Voting and Standstill Agreement dated as of April 2, 2008, which we refer to as the voting agreement. The voting agreement, is attached as Annex B to this proxy statement/prospectus. We encourage you to read the voting agreement carefully and in its entirety because it contains important terms.

Pursuant to the voting agreement, effective as of the effective time of the merger, Patriot’s board of directors will be expanded from seven to nine members and the board of directors will appoint two nominees designated by the Magnum stockholders, acting through the ArcLight Funds as their stockholder representative. One such nominee will serve as a Class I director and the other nominee will serve as a Class II director on Patriot’s board of directors. The nominees initially designated for appointment are Robb E. Turner and John F. Erhard, each of whom is affiliated with the ArcLight Funds.

At such time as the Magnum stockholders party to the voting agreement own (as determined in the manner described below) less than twenty percent (but at least ten percent) of the Patriot common stock outstanding or the ArcLight Funds own less than ten percent of the Patriot common stock outstanding, the stockholder representative will be entitled to one board nominee only. At such time as the Magnum stockholders party to the voting agreement own (as determined in the manner described below) less than ten percent of the Patriot common stock outstanding, the stockholder representative will not be entitled to any board nominees. For purposes of the determination of ownership of Patriot common stock by the Magnum stockholders party to the voting agreement, for the purposes of board nominee rights under the voting agreement, (1) the number of shares of Patriot common stock outstanding is deemed to be equal to the sum of the number of shares of Patriot common stock outstanding on the date of the merger agreement and the number of Patriot shares issued in the merger and (2) Magnum stockholders who agree to limited versions of the “standstill” restrictions described below will be deemed to have transferred a portion of their Patriot shares, while Magnum stockholders who agree to the fuller version of the standstill restrictions described below will not be deemed to have transferred any portion of their Patriot shares. It is anticipated that, as calculated in accordance with these provisions, the relevant Magnum stockholders will own approximately 23.4% of the Patriot common stock outstanding as of the date of the merger agreement on a pro forma basis for the issuance in the merger.

Pursuant to the voting agreement, so long as the stockholder representative is entitled to nominate any members to Patriot’s board of directors, holders of Magnum common stock who are expected to hold approximately 30.5% of the Patriot common stock outstanding as of the date of the merger agreement on a pro forma basis for the issuance in the merger have agreed to vote all of their shares of Patriot common stock in favor of the entire slate of directors recommended for election by the Patriot board of directors to Patriot’s stockholders.

Pursuant to the voting agreement, so long as the stockholder representative is entitled to nominate any members to Patriot’s board of directors, holders of Magnum common stock who are expected to hold approximately 25.5% of the Patriot common stock outstanding as of the date of the merger agreement on a pro forma basis for the issuance in the merger have agreed to vote all of their shares of Patriot common stock as recommended by Patriot’s board of directors in the case of (1) any stockholder proposal submitted for a vote at any meeting of Patriot’s stockholders and (2) any proposal submitted by Patriot for a vote at any meeting of Patriot’s stockholders relating to the appointment of Patriot’s accountants or a Patriot equity compensation plan.

Pursuant to the voting agreement, certain Magnum stockholders party to the voting agreement, representing approximately 28.0% of the Patriot common stock outstanding as of the date of the merger agreement on a pro forma basis for the issuance in the merger will be subject to certain “standstill” restrictions limiting their ability to acquire additional shares of Patriot or take certain other actions. The scope of the “standstill” restrictions differs amongst the Magnum stockholders.

Pursuant to the voting agreement, the Magnum stockholders party to the voting agreement, representing approximately 30.5% of the Patriot common stock outstanding as of the date of the merger agreement on a pro forma basis for the issuance in the merger, will be subject to restrictions on their ability to transfer shares of Patriot common stock as follows:

Patriot has agreed to provide the ArcLight Funds with customary registration rights with respect to the shares of Patriot common stock issuable to the ArcLight Funds in the merger pursuant to a registration rights agreement to be entered into at the effective time of the merger.

Patriot Coal Corporation, a Delaware corporation, is a leading producer and marketer of coal in the eastern United States, with ten company-operated mines and numerous contractor-operated mines in Appalachia and the Illinois Basin. Patriot ships to electric utilities, industrial users and metallurgical coal customers, and controls approximately 1.3 billion tons of proven and probable coal reserves. Patriot’s common stock trades on the New York Stock Exchange under the symbol PCX.

Magnum Coal Company, a Delaware corporation, is one of the largest coal producers in Central Appalachia based on 2007 production. As of January 1, 2008, Magnum controlled proven and probable reserves of 606.6 million tons of coal. Based on 2007 production of 16.1 million tons, Magnum’s reserve base could support similar levels of production for more than 30 years.

Colt Merger Corporation is a Delaware corporation and a wholly owned subsidiary of Patriot. Colt Merger Corporation was organized on March 5, 2008 solely for the purpose of effecting the transactions contemplated by the merger agreement, including the merger with Magnum.

Shares of Patriot common stock are listed on the New York Stock Exchange under the symbol “PCX.”

On April 1, 2008, the last full trading day prior to the public announcement of the merger, the closing sale price of Patriot common stock on the New York Stock Exchange was $47.71. On June 16, 2008, the latest practicable date before the date of this proxy statement/prospectus, the closing sale price of Patriot common stock on the New York Stock Exchange was $154.36. Stockholders are urged to obtain current market quotations for shares of Patriot common stock prior to making any decision with respect to the approval of the issuance of Patriot common stock to the holders of Magnum common stock pursuant to the merger agreement. Patriot has not previously declared any quarterly dividends.

Magnum is a privately-held company and no public market exists for its common stock. Magnum has never declared or paid any cash dividends on its common stock nor does it intend to do so.

The following table sets forth for the periods presented certain per share information for Patriot and Magnum on a historical basis and on an unaudited pro forma basis after giving effect to the merger under the purchase method of accounting. The historical per share information for Patriot and Magnum has been derived from, and should be read in conjunction with, the historical consolidated financial statements for the year ended December 31, 2007 of Patriot and Magnum included in this proxy statement/prospectus as Annexes E and F, respectively, and as of and for the three months ended March 31, 2008 included as Annexes G and H, respectively. The unaudited pro forma per share information has been derived from, and should be read in conjunction with, the unaudited pro forma condensed combined financial information included in this proxy statement/prospectus. See “Unaudited Pro Forma Condensed Combined Financial Information.”

The following table presents selected financial and other data about Patriot for the most recent five fiscal years, as well as the three months ended March 31, 2008 and 2007. The historical financial and other data have been prepared on a consolidated basis derived from Patriot’s consolidated financial statements using the historical results of operations and bases of the assets and liabilities of Patriot’s businesses and give effect to allocations of expenses from Peabody Energy Corporation, which we refer to as Peabody, the former parent of Patriot. For periods prior to the spin-off of Patriot from Peabody, which occurred on October 31, 2007, the historical consolidated statement of income data set forth below does not reflect changes that occurred in the operations and funding of the company as a result of Patriot’s spin-off from Peabody. The historical consolidated balance sheet data set forth below reflects the assets and liabilities that existed as of the dates and the periods presented.

The selected consolidated financial data should be read in conjunction with, and are qualified by reference to, “Management’s Discussion and Analysis of Financial Condition and Results of Operations of Patriot” and the historical financial statements and the accompanying notes thereto of Patriot and Patriot’s consolidated subsidiaries included elsewhere in this proxy statement/prospectus. The consolidated statements of operations and cash flow data for each of the three years in the period ended December 31, 2007 and the consolidated balance sheet data as of December 31, 2007 and 2006 are derived from Patriot’s audited consolidated financial statements included elsewhere in this proxy statement/prospectus, and should be read in conjunction with those consolidated financial statements and the accompanying notes. The consolidated balance sheet data as of December 31, 2005 and the consolidated statement of operations for the year ended December 31, 2004 were derived from audited consolidated financial statements that are not presented in this proxy statement/prospectus. The consolidated statement of operations for the year ended December 31, 2003 and the consolidated balance sheet data as of December 31, 2004 and December 31, 2003 were derived from Patriot’s unaudited financial statements. The historical financial and other data relating to the three months ended March 31, 2008 and 2007 has been derived from Patriot’s unaudited consolidated financial statements and the related notes included elsewhere in this proxy statement/prospectus. In management’s opinion, these unaudited consolidated financial statements have been prepared on substantially the same basis as the audited financial statements and include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial data for the periods presented.

The financial information presented below may not reflect what Patriot’s results of operations, cash flows and financial position would have been had it operated as a separate, stand-alone entity during the periods presented or what its results of operations, financial position and cash flows will be in the future. In addition, the “Risk Factors” section of this proxy statement/prospectus includes a discussion of risk factors that could impact Patriot’s future results of operations.

Adjusted EBITDA is calculated as follows (unaudited):

The following table sets forth Magnum’s summary historical consolidated financial information for each year in the three-year period ended December 31, 2007, which has been derived from Magnum’s audited consolidated financial statements, as well as Magnum’s unaudited consolidated financial information for the three months ended March 31, 2008 and 2007. Magnum was formed on October 5, 2005 by ArcLight Energy Partners Fund I L.P. for the purpose of acquiring certain properties from Arch Coal, Inc., Trout Coal Holdings,

On March 21, 2006, as part of a recapitalization of Magnum, ArcLight Energy Partners Fund I L.P. and Timothy Elliott, who we refer to as Elliott, contributed 100% of their equity interests in Trout Coal Holdings, LLC and New Trout Coal Holdings II, LLC, which together held all of the equity interests in certain subsidiaries that now form part of the Magnum group of companies, in exchange for common stock of Magnum.

The historical financial information for each year in the three-year period ended December 31, 2005 is that of Magnum’s predecessor, the Magnum acquired properties, which has been derived from the Magnum acquired properties’ audited consolidated financial statements. The business represented by the historical financial position of the Magnum acquired properties did not constitute a legal entity. The separate operating information prepared for each of Hobet Mining LLC, Apogee Coal Company, LLC, and Catenary Coal Company, LLC, which we refer to as Hobet, Apogee and Catenary, respectively, was combined to present the historical financial statements of the Magnum acquired properties. The Magnum acquired properties did not maintain their own stand-alone headquarters, treasury, legal, tax and other similar corporate support functions. Therefore, expenses for selling, general and administrative expenses were allocated to the Magnum acquired properties from Arch Coal, their ultimate parent, based on Arch Coal’s best estimates of proportional costs of Arch Coal or incremental costs as a stand-alone entity, whichever was more representative of costs incurred by Arch Coal on behalf of the Magnum acquired properties. Interest expense was allocated to the Magnum acquired properties from Arch Coal in a similar fashion. The Magnum acquired properties were included in federal and state income tax returns as part of the Arch Coal consolidated group. For purposes of the combined historical financial statements of the Magnum acquired properties, the federal and state income taxes attributable to the Magnum acquired properties were calculated on a stand-alone basis.

The following data should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations of Magnum”, “Management’s Discussion and Analysis of Pro Forma Results of Operations of Magnum”, Magnum’s audited consolidated financial statements for each of the three years in the period ended December 31, 2007, the audited financial statements of the Magnum acquired properties for the year ended December 31, 2005, Magnum’s unaudited consolidated financial statements for the three months ended March 31, 2008 and 2007 and the related notes included elsewhere in this proxy statement/prospectus. In addition, the “Risk Factors relating to Magnum” section of this proxy statement/prospectus includes a discussion of risk factors that could impact Magnum’s future results of operations.

Certain reclassifications have been made to Magnum’s historical financial results to conform to Patriot’s definition of Adjusted EBITDA and Segment Adjusted EBITDA as defined in “Management’s Discussion and Analysis of Financial Condition and Results of Operations of Patriot” contained in this proxy statement/prospectus.

Adjusted EBITDA is calculated and reconciled to net income (loss) in the table below for the periods indicated (unaudited):