Kentucky Energy Inc. July 31, 2010, Year to Date Production Results

Gwenco to Report Coal Revenue Increase of 341% Clean Tons of Coal


PATERSON, N.J., Aug. 25, 2010 (GLOBE NEWSWIRE) -- Kentucky Energy Inc. (Pink Sheets:QMIN) (Kentucky Energy), a Kentucky based operator of energy and mineral related properties, today announced its financial results for its second quarter ended June 30, 2010.

Second Quarter 2010 Highlights: Year to date revenue was $1.48M compared to $0.33M in 2009.

Kentucky Energy coal revenues were $1,458,351 for the six months ended June 30, 2010, as compared to $330,314 for the six months ended June 30, 2009, an increase of approximately 341%. This increase in revenues was due to an increased level of mining operations in the first six months of 2010 versus 2009. Kentucky Energy subsidiary Gwenco leases over 700 acres of coal mines, with approximately 12,999,000 tons of coal in place in six seams.

Eugene Chiaramonte, Jr., President of Kentucky Energy, noted, "The improved year to date revenue represents an important milestone for our Company. This significant increase in revenue resulted from our ability to mine on a more consistent basis as compared to the prior period. As a percentage of net sales, our production costs decreased, as our additional cost expenditures resulted in more efficient and productive mining operations. We added and upgraded equipment which allowed us to be in production more consistently. In addition, as we advanced further into the mine, the coal seam thickened, which resulted in improved rates of recovery and a higher percentage of coal per gross ton extracted." 

"We continue to work toward our production goal of 10,000 clean tons of coal per month. We are proud our coal meets sulfur dioxide emission standards for air quality without the need for flue-gas desulfurization," Mr. Chiaramonte concluded.

About Kentucky Energy, Inc.: Kentucky Energy, Inc. acquires and operates energy and mineral related properties in the southeastern part of the United States. The Company focuses its efforts on properties that produce quality compliance blend coal. For more information on Kentucky Energy, Inc., please visit our website: KentuckyEnergyInc.com.

Forward Looking Statement: This press release contains items that may constitute forward-looking statements with the meaning of the Private Securities Litigation Reform Act of 1995. Although Kentucky Energy, Inc. believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ from expectations include, but are not limited to, lack of revenue producing operations, lack of working capital, debt obligations, judgment and lien claims against Kentucky Energy, Inc. and certain of its assets, difficulties in refinancing short term debt, difficulties identifying and acquiring complementary businesses, fluctuations in coal, oil and gas, and other energy prices, general economic conditions in markets in which Kentucky Energy, Inc. does business, extensive environmental and stock and other uncertainties and business issues that are detailed in its filings with the Securities and Exchange Commission.



            

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