Peabody Energy and ArcelorMittal Obtain Majority Interest in Macarthur Coal; Offer Now Unconditional

Peabody Energy BTU and ArcelorMittal MT today announced they have achieved majority control of Macarthur Coal Ltd following acceptances under PEAMCoal Pty Ltd's takeover bid in respect of more than 50.01% of the Macarthur shares. PEAMCoal Pty Ltd disclosed today that it has a relevant interest in approximately 59.85% of the Macarthur shares, excluding shares subject to the Institutional Acceptance Facility. As a result, the minimum acceptance condition of 50.01% has been satisfied and PEAMCoal has declared the offer unconditional. Those shares subject to IAF instructions will now be converted into actual acceptances of the offer. As previously announced, PEAMCoal will increase the offer price for all shareholders from A$16.00 to A$16.25 per share if PEAMCoal acquires relevant interests in at least 90% of Macarthur shares by 7:00 p.m. (Brisbane time) on 11 November 2011. PEAMCoal reserves the right to extend this date. PEAMCoal will not increase the offer price of A$16.00 per share unless PEAMCoal acquires relevant interests in at least 90% of Macarthur shares. Reaching the 90% relevant interest threshold would allow PEAMCoal to compulsorily acquire all outstanding Macarthur shares. PEAMCoal has declared the increased offer price A$16.25 per share to be final (in the absence of a superior or competing proposal).