Arch’s operating regions are cash flow positive in every stage of the market cycle Source: Arch Note: Successor period: October 2, 2016 to December 31, 2016. Reconciliation of non-GAPP measures can be found at the end of this presentation REGIONAL PERFORMANCE (PER TON) Investor Presentation 28 Successor Q1' 15 Q2' 15 Q3' 15 Q4' 15 YR' 15 Q1' 16 Q2' 16 Q3' 16 Q4' 16 Powder River Basin Tons sold (in thousands) 28,471 25,544 29,469 24,997 108,481 16,506 15,639 22,767 21,824 Sales price per ton 13.48 13.24 13.07 12.77 13.15 13.24 13.08 12.79 12.41 Cash cost per ton 10.77 10.77 9.91 10.79 10.54 12.47 11.72 9.34 9.88 Cash margin per ton 2.71 2.47 3.16 1.98 2.61 0.77 1.36 3.45 2.53 Metallurgical Tons sold (in thousands) Coking 1,319 1,527 1,372 1,387 5,605 1,507 1,622 1,640 1,744 PCI 93 69 213 92 467 69 161 137 170 Thermal 606 600 566 508 2,280 589 525 443 528 Total tons sold 2,018 2,197 2,151 1,987 8,352 2,165 2,307 2,220 2,442 Sales price per ton Coking 77.93 77.92 70.66 57.38 71.06 54.32 55.00 57.80 75.36 PCI 65.21 64.95 60.84 58.20 61.80 49.88 51.18 51.33 54.78 Thermal 56.46 55.28 59.47 55.52 56.69 43.02 47.12 47.59 36.86 Weighted average sales price per ton 70.90 71.32 66.74 56.94 66.62 51.10 52.94 55.37 65.61 Cash cost per ton * 50.53 67.26 48.61 67.03 58.36 48.19 54.52 51.29 52.98 Cash margin per ton 20.37 4.06 18.13 (10.09) 8.26 2.91 (1.58) 4.08 12.63 Other Thermal Tons sold (in thousands) 2,208 2,633 2,970 1,953 9,764 1,276 1,436 2,468 2,510 Sales price per ton 40.02 36.82 34.96 38.55 37.32 39.80 35.76 34.52 34.01 Cash cost per ton * 30.70 26.70 24.77 31.66 28.01 37.32 36.38 23.10 21.79 Cash margin per ton 9.32 10.12 10.19 6.89 9.31 2.48 (0.62) 11.42 12.22 SG&A (22,605) (24,268) (25,731) (26,179) (98,783) (19,826) (19,020) (20,498) (22,836) Liquidated Damages (13,014) (14,329) (12,952) (12,643) (52,937) (1,629) - - - Other Income/(Expense) (13,260) (6,259) 19,718 (7,473) (7,274) (2,455) 1,948 (6,061) 464 Adjusted EBITDAR 90,201 53,745 143,222 (3,371) 283,797 (1,720) (310) 89,333 94,497 Predecessor
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