The purpose of the Pro Forma financial statements presented herein is to show how the sale of the assets of Kentucky Criterion Coal Co. might have affected historical financial statements if the sale had been consummated at January 1, 1993 for the income statements and at September 30, 1994 for the balance sheet. These statements are provided only for the reason stated above and are not provided for any other purpose. Westmoreland Coal Company and Subsidiaries Pro Forma Consolidated Balance Sheet As of September 30, 1994 Historical Adjustments ProForma Current Assets Cash and cash equivalents 16,341 11,631 a 27,972 Notes and accounts receivable: Trade 29,612 29,612 Notes 5,654 5,564 Other 1,103 1,103 36,369 0 36,369 Less allowance for doubtful accounts 5,786 5,786 30,583 0 30,583 Inventories: Coal 3,024 3,024 Mine supplies 5,826 5,826 8,850 0 8,850 Assets of Kentucky Criterion held for sale 39,330 (39,330) b 0 Other current assets 2,034 2,034 Total current assets 97,138 (27,699) 69,439 Property, Plant and equipment Land and mineral rights 30,324 30,324 Plant and equipment 293,437 293,437 323,761 0 323,761 Less accumulated depreciation and depletion 223,695 223,695 100,066 0 100,066 Investment in cogeneration 20,234 22,376 c 42,610 Investment in DTA 19,967 19,967 Other assets 16,171 197 d 16,368 Total assets 253,576 5,126 248,450 Current Liabilities Current portion of long-term debt 47,886 (44,336) e 3,550 Accounts payable and accrued expenses 38,603 5,328 f 43,931 Accrual for postretirement medical costs 8,075 8,075 Taxes on income 3,457 700 g 4,157 Total current liabilities 98,021 38,308 59,713 Long-term debt 13,239 13,239 Accrual for pneumoconiosis benefits 16,500 16,500 Accrual for workers' compensation 22,696 22,696 Accrual for postretirement medical costs 34,414 34,414 Other liabilities 19,604 19,604 Deferred income taxes 15,196 15,196 Minority Interest 10,536 10,536 Shareholders' equity Preferred stock of $1.00 par value Authorized 5,000,000 shares; Issued 575,000 shares 575 575 Common stock of $2.50 par value Authorized 20,000,000 shares; Issued 6,956,179 shares 17,390 17,390 Other paid-in capital 94,653 94,653 Retained earnings (Accumulated deficit) (89,248) 33,182 h (56,066) Total shareholders' equity 23,370 33,182 56,552 Total liabilities and shareholders' equity 253,576 (5,126) 248,450 a - Net proceeds of $80,790 less $2,250 heldback by CONSOL pending the resolution of certain issues, $44,336 debt repaid, $197 placed into Aetna Cash Collateral account and $22,376 used for funding equity required for two cogeneration projects. b - Assets of Kentucky Criterion Coal Co. sold. c - Equity funding required on December 30, 1994 for two cogeneration projects. d - Cash transferred into Aetna Cash Collateral account. e - Debt repaid - $25,060 DTA banks, $12,088 Private Placement and $7,188 Revolver. f - Represents certain amounts accrued and due out of the sale transaction. g - Represents tax on the gain on sale of the assets of Kentucky Criterion Coal Co. h - Represents the approximate gain on sale of the assets of Kentucky Criterion Coal Co.