Cloud Peak Energy Provides Update on Strategic Alternatives Review

Cloud Peak Energy Inc. (NYSE: CLD) (the “Company”), the only pure-play
Powder River Basin (“PRB”) coal company, today announced that it has
retained Centerview Partners LLC as its investment banker, Vinson &
Elkins LLP as its legal advisor, and FTI Consulting, Inc. as its
financial advisor to assist the Company and its Board of Directors in
the Company’s review of capital structure and restructuring
alternatives. During this review process, the Company’s mines will
continue normal operations, safely and efficiently meeting our customer
commitments.

As disclosed on November 13, 2018, the Company’s Board, working together
with its management team and legal and financial advisors, commenced a
review of strategic alternatives, including a potential sale of the
Company, and previously engaged J.P. Morgan Securities LLC as its
financial advisor and Allen & Overy LLP as legal counsel in connection
with exploring sale opportunities.

The Company’s Board has not set a specific timetable for this review
process and the Company does not intend to provide updates unless or
until it determines that further disclosure is appropriate or necessary.

In connection with this review process, the Company’s Board approved an
updated executive retention program for the Company’s senior management
team, which replaces the previously announced November 2018 retention
program. Additional information on the retention program can be found in
the Company’s Form 8-K filed today.

About Cloud Peak Energy®

Cloud Peak Energy Inc. (NYSE:CLD) is headquartered in Wyoming and is the
only pure-play Powder River Basin coal company. As one of the safest
coal producers in the nation, Cloud Peak Energy mines low sulfur,
subbituminous coal and provides logistics supply services. The Company
owns and operates three surface coal mines in the PRB, the lowest cost
major coal producing region in the nation. The Antelope and Cordero Rojo
mines are located in Wyoming and the Spring Creek Mine is located in
Montana. In 2017, Cloud Peak Energy sold approximately 58 million tons
from its three mines to customers located throughout the U.S. and around
the world. Cloud Peak Energy also owns rights to substantial undeveloped
coal and complementary surface assets in the Northern PRB, further
building the Company’s long-term position to serve Asian export and
domestic customers. With approximately 1,300 total employees, the
Company is widely recognized for its exemplary performance in its safety
and environmental programs. Cloud Peak Energy is a sustainable fuel
supplier for approximately two percent of the nation’s electricity.

Cautionary Note Regarding Forward Looking Statements

This release contains “forward-looking statements” within the meaning of
the safe harbor provisions of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements are not statements of historical facts and often contain
words such as “may,” “will,” “expect,” “believe,” “anticipate,” “plan,”
“estimate,” “seek,” “could,” “should,” “intend,” “potential,” or words
of similar meaning. Forward-looking statements are based on management’s
current expectations, beliefs, assumptions and estimates regarding our
company, industry, economic conditions, government regulations and
energy policies and other factors. Forward-looking statements may
include, for example, statements regarding the Board of Directors’
strategic evaluation process, our operational and financial priorities,
our responses to the structural changes in the U.S. coal industry, our
efforts to position our company for future growth opportunities, and
other statements regarding our plans, strategies, prospects and
expectations concerning our business, operating results, financial
condition, liquidity and other matters that do not relate strictly to
historical facts. These statements are subject to significant risks,
uncertainties, and assumptions that are difficult to predict and could
cause actual results to differ materially and adversely from those
expressed or implied in the forward-looking statements, including risks
and uncertainties regarding the potential timing, benefits and outcome
of the Board of Directors’ strategic evaluation process and risks and
uncertainties associated with any potential strategic transaction,
including any potential restructuring, and risks and uncertainties
regarding our liquidity. Forward-looking statements are also subject to
the risk factors and cautionary language described from time to time in
the reports and registration statements we file with the Securities and
Exchange Commission, including those in Item 1A - Risk Factors in our
most recent Form 10-K and any updates thereto in our Forms 10-Q and
current reports on Form 8-K. Additional factors, events, or
uncertainties that may emerge from time to time, or those that we
currently deem to be immaterial, could cause our actual results to
differ, and it is not possible for us to predict all of them. We make
forward-looking statements based on currently available information, and
we assume no obligation to, and expressly disclaim any obligation to,
update or revise publicly any forward-looking statements made in this
release, whether as a result of new information, future events or
otherwise, except as required by law.

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