Dutton Associates updates its coverage of National Coal Corporation (Nasdaq:NCOC) with a rating of speculative buy and a 12 month price target of $6.35. The 29-page report by Dutton senior analyst Richard R. Wolfe, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.

National Coal, a central Appalachian coal producer established in 2003, that grew rapidly during 2004 and 2005, encountered some challenges in 2006 which are likely to extend into 2007; but from a fundamental standpoint remains very well positioned for substantial growth over the medium term as an expected rebound in coal markets opens up growth opportunities for the Company. The basis for the Company's growth is a formula for rolling-up available Central Appalachian properties through a combination of effective financing strategies, farsighted management with long industry experience, and leveraging acquisition-friendly conditions in the coal industry. Geography is also an advantage. As of September 30, 2006, the Company controlled 37.4 million estimated recoverable tons of coal. In the nine months ended September 30, 2006, the Company's mines produced approximately 1,046,000 tons of coal, or about 100,000 tons per month, compared to 813,000 tons during the first nine months of 2005, an increase of nearly 30%. Our coal price outlook is favorable over the medium-to-long term. We believe that the recent inventory run-ups will not persist beyond 2007. Therefore, in our earnings and cash-flow model, we are using a coal price of $50 per ton. We provide a totally new earnings and cash flow model based on operating changes and the scale-back in 2006 second half.

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Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $60,000 from the Company for 8 Research Reports with coverage commencing on 5/12/2005. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.