Cloud Peak Energy Signs Long-Term Coal Export Agreement with JERA Trading to Supply New Japanese IGCC Power Plant

January 16, 2018

GILLETTE, Wyo.–(BUSINESS WIRE)–Cloud Peak Energy announced today that its wholly-owned subsidiary,
Cloud Peak Energy Logistics (“CPEL”), has entered into a term coal
export sales agreement with JERA Trading Pte Ltd. (“JERAT”), which is a
trading company based in Singapore (http://jeratrading.com/).

Shipments are expected to commence as early as the end of 2019 and
continue for a period of between thirty and forty months, reaching up to
one million metric tonnes in the final contract year.

Coal produced at Cloud Peak Energy’s Spring Creek Mine, located near
Decker, Montana, will be carried by the BNSF Railway to Westshore
Terminals at Roberts Bank, Vancouver, for loading onto ocean-going
vessels for subsequent delivery to two new state-of-the-art Integrated
coal Gasification Combined Cycle (“IGCC”) coal-fired power plants in
Fukushima Prefecture, Japan. The two 540-megawatt IGCC plants are being
developed by Mitsubishi Corporation Power Ltd., along with Mitsubishi
Heavy Industries, Ltd., Mitsubishi Electric Corporation, Tokyo Electric
Power Company Holdings, Incorporated and Joban Joint Power Co., Ltd.
IGCC systems generate power using a combined cycle format incorporating
coal gasification and both gas and steam turbines. IGCC systems offer
enhanced generation efficiency, as well as reductions in carbon dioxide
(CO2) emissions of about 15% in comparison with the latest,
state-of-the-art, conventional coal-fired power plant designs and
substantially lower than most plants in operation in the United States.
The first new IGCC plant is scheduled to commence operation in September
2020.

“Cloud Peak Energy is pleased to be part of the Fukushima IGCC project
and to help support Japan’s investment in next generation coal
technology,” said Colin Marshall, Cloud Peak Energy’s President and CEO.
“If similar plants were to be built in the U.S. it would go a long way
to addressing concerns about CO2 emissions while providing
low cost reliable electricity. Today’s announcement also demonstrates
the strategic importance of American energy resources to key Asian
allies.”

Ronan Lory, JERA Trading Managing Director, indicated that “JERA Trading
is glad to have secured a long-term coal sourcing agreement with Cloud
Peak Energy, it demonstrates that North America remains a key supplier
of quality coal for exports and vindicates our decision to set up our
new subsidiary JERA Trading North America, LLC.”

About Cloud Peak Energy ®

Cloud Peak Energy Inc. (NYSE: CLD) is headquartered in Wyoming and is
one of the largest U.S. coal producers and the only pure-play Powder
River Basin coal company. As one of the safest coal producers in the
nation, Cloud Peak Energy mines low sulfur, subbituminous coal and
provides logistics supply services. The Company owns and operates three
surface coal mines in the PRB, the lowest cost major coal producing
region in the nation. The Antelope and Cordero Rojo mines are located in
Wyoming and the Spring Creek Mine is located in Montana. In 2016, Cloud
Peak Energy shipped approximately 59 million tons from its three mines
to customers located throughout the U.S. and around the world. Cloud
Peak Energy also owns rights to substantial undeveloped coal and
complementary surface assets in the Northern PRB, further building the
Company’s long-term position to serve Asian export and domestic
customers. With approximately 1,300 total employees, the Company is
widely recognized for its exemplary performance in its safety and
environmental programs. Cloud Peak Energy is a sustainable fuel supplier
for approximately three percent of the nation’s electricity.

About JERA Trading

JERA Trading Pte Ltd. (JERAT) is a jointly owned company owned
two-thirds by JERA Trading International Pte. Ltd., a wholly owned
subsidiary of JERA Co. Inc. which is an equal joint venture between two
major Japanese electric power companies, TEPCO Fuel & Power (Tepco) and
Chubu Electric Power Company (Chubu), and one-third by EDF Trading, the
trading arm of EDF, the French leading low carbon power producer in
Europe.

JERAT is responsible for the global coal procurement of Chubu, Tepco and
EDF. It operates an integrated coal and freight supply chain and has
benefited from EDF Trading’s expertise in energy commodity trading and
risk management to minimize the costs and optimize the revenues
associated with the delivery of coal requirements of its shareholders
and third party customers.

JERAT is one of the leading utility-backed coal traders globally with a
presence in both the Atlantic and Pacific basins. It operates in all
major coal and freight markets (Europe, Asia, North and South America)
and trades both physical and financial products.

JERAT is headquartered in Singapore with offices in London and in
Maryland. More information on http://www.jeratrading.com.

Cautionary Note Regarding Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of
the safe harbor provisions of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements are not statements of historical facts and often contain
words such as “may,” “will,” “expect,” “believe,” “anticipate,” “plan,”
“estimate,” “seek,” “could,” “should,” “intend,” “potential,” or words
of similar meaning. Forward-looking statements are based on management's
current expectations or beliefs as well as assumptions and estimates
regarding our company, industry, economic conditions, government
regulations, energy policies and other factors. Forward-looking
statements may include, for example, (1) the anticipated timing for
commencement of coal shipments to JERAT, (2) the anticipated sales
volumes and duration of future sales to JERAT, (3) estimated timing for
commercial operation for JERAT’s IGCC plants, (4) other statements
regarding this transaction and anticipated future benefits of this
transaction and (5) other statements regarding our plans, strategies,
prospects, expectations, beliefs, assumptions and estimates concerning
our business, industry, economic conditions, operating results,
financial condition and other matters that do not relate strictly to
historical facts. These statements are subject to significant risks,
uncertainties, and assumptions that are difficult to predict and could
cause actual results to differ materially and adversely from those
expressed or implied in the forward-looking statements, including risks
relating to the following factors: (i) JERAT’s IGCC plants are not
constructed or commissioned on the currently planned schedule or at all,
or at the currently planned size, due to challenges associated with
regulatory approvals and permits, construction, financing, government
policies or other issues, (ii) logistics, transportation or mining
related disruptions, delays or other difficulties that adversely impact
the timing or volumes of our planned coal shipments or our logistics or
mining costs, (iii) performance issues or disputes under our agreements
with JERAT or with our rail and port logistics providers, (iv) the
impact of future seaborne coal pricing levels, or (v) other risks and
uncertainties that adversely impact our ability to realize the
anticipated benefits of the transactions described herein. For a
discussion of some of the additional factors that could adversely affect
our future results or the anticipated benefits of this transaction,
refer to the risk factors described from time to time in the reports and
registration statements we file with the Securities and Exchange
Commission (“SEC”), including those in Item 1A – Risk Factors in our
most recent Form 10-K and any updates thereto in our Forms 10-Q and
current reports on Forms 8-K. There may be other risks and uncertainties
that are not currently known to us or that we currently believe are not
material. We make forward-looking statements based on currently
available information, and we assume no obligation to, and expressly
disclaim any obligation to, update or revise publicly any
forward-looking statements made in this release, whether as a result of
new information, future events or otherwise, except as required by law.