Audley Capital Highlights Shortcomings of Walter Energy′s Naive Business Plan

Audley Capital Advisors LLP (including certain related funds and
investment vehicles, 'Audley Capital?) today issued the following
statement questioning Walter Energy, Inc.′s (NYSE: WLT) (TSX: WLT)
('Walter Energy? or 'the Company?) argument regarding pricing
improvements in the metallurgical coal ('met coal?) market. Audley
Capital is continuing to urge stockholders to vote the GOLD
proxy card for its five nominees for election to the Board of Directors
at the Company′s upcoming 2013 Annual Meeting of Stockholders on April
25, 2013.

Julian Treger, Managing Partner of Audley Capital Advisors, said, 'Over
the past few weeks, including in its most recent letter to stockholders
dated April 15, 2013, Walter Energy expressed optimism regarding
improving conditions for met coal pricing. The Company has been pushing
a plan that is entirely predicated on the recovery of met coal pricing
in the very near future. We believe that demonstrates the lack of
sophistication and thoughtful analysis by the current Board. The Board
has claimed that met coal prices are at their trough, but as
demonstrated by the downward pressure on met coal pricing and recently
disclosed Chinese growth figures, there is a very real possibility that
prices will fall further. Just yesterday, the impact on Walter Energy′s
share price was significant, wiping off another $200 million of market
capitalization to approximately $1.3 billion against a debt load of
approximately $2.5 billion.?

Added Mr. Treger, 'We believe that the current Board is ill-prepared to
respond to continued price deterioration. Our analysis suggests that if
met coal prices drop further, the Company could face a liquidity crisis
in the foreseeable future and the Board would be forced to pursue
financing that, given what we see as the Board′s lack of sophistication
in the capital markets, could severely impact existing stockholders. We
are concerned that the very directors that created Walter Energy′s
leverage problem are ill-equipped to address the issue if met coal
prices do not, as they wish, bail them out of the current situation.?

Mr. Treger concluded, 'We have consistently called attention to the fact
that there are options available to the Company that we think a skilled
Board could pursue to manage price volatility and financing constraints.
Our director nominees have proven their value in volatile and distressed
situations. We believe that our Board nominees ? both as a collective
group and as individuals ? are qualified to assist management to address
issues of reducing balance sheet risk, seeking joint venture partners
for projects, divesting underperforming and non-core assets, and
upgrading existing reserves. We are convinced that Walter Energy is in
need of real, credible, sophisticated new Board members to help restore
confidence in the direction of the Company and address all possible
scenarios facing the business, including falling met coal prices.?

Audley Capital notes that analysts are concerned about the Company′s
prospects to increase equity value over the coming 12 to 24 months, and
ability to react to a further deterioration in met coal pricing.

'?the Company remains at the whim of subdued global coal pricing.
While we are maintaining our HOLD rating on the stock in light of the
recent pullback in the shares, we would avoid any new positions pending
better industry fundamentals and incremental capital structure needs.? ?
KeyBanc; April 11, 2013

'We expect 1Q13 will be a difficult quarter for EPS results,
reflecting the weakest settlement for benchmark metallurgical coal
pricing since quarterly contracts began in 1Q10. On average, our 1Q13
EBITDA estimates are down 27% q/q (excluding Walter Energy) driven
primarily by the weaker pricing.? ? Stifel; April 15, 2013

'In light of the heavy debt load, BMO Research cannot rule out a
potential equity offering.? ? BMO; March 31, 2013

'Lowering our 2013 view to a loss of $1.00 (from loss of $0.90) vs.
the Street's loss of $0.75; and maintaining our below-consensus 2014
estimate of $0.80 (vs. the Street's $1.95).? ? KeyBanc; April 11,
2013

Audley Capital urges stockholders to vote FOR its five director nominees
by immediately completing and returning their GOLD
proxy card or by submitting proxies by telephone or through the
Internet. Investors that have any questions or need assistance voting
your shares, please call our proxy solicitor, Okapi Partners LLC, at
(877) 208-8903.

Additional Information

Further information regarding the director nominees and other persons
who may be deemed participants, and other matters, are set forth in a
definitive proxy statement filed with the Securities and Exchange
Commission ('SEC?). SHAREHOLDERS OF THE COMPANY ARE STRONGLY ADVISED TO
READ THAT PROXY STATEMENT, BECAUSE IT INCLUDES IMPORTANT INFORMATION.
THE PROXY STATEMENT IS BEING SENT TO SHAREHOLDERS BY OR ON BEHALF OF
PARTICIPANTS, AND IS ALSO AVAILABLE AT NO CHARGE ON THE SEC′S WEBSITE AT http://www.sec.gov.

*Audley Capital has not requested or obtained the consent of any
third party quoted.

Investors:

Audley Capital Advisors LLP

Julian Treger,
Managing Partner

+44 20 7529 6900

or

Okapi Partners LLC

Bruce
Goldfarb/Charles Garske/Patrick McHugh

212-297-0720



Media:

Sard
Verbinnen & Co

Dan Gagnier/Brian Shiver

212-687-8080