Ltd. CINERGY announces a divestiture of ELK HORN coal investment - PR Newswire (press release)

The Toronto Stock Exchange: XRG
(All amounts in $ us unless otherwise indicated)

KNOXVILLE, TN, June 10, 2011 /PRNewswire/ - Cinergy Ltd. (TSX: XRG) ("Cinergy" or the "company"), a producer of the Central Appalachians US high quality coal, announced today its subsidiary entire Corp. subsidiary Cinergy transferred his interest to Elk Horn Coal Company, LLC ("Elk Horn") in connection with the acquisition of Elk Horn by Rhino Resource PartnersLP ("the Acquisition of Rhino"). Under the terms of the final documentation governing the Acquisition of Rhino (the "Merge Documents"), the company expects to receive initial product gross of approximately 17.9 million dollars, or about $9.67 per unit for its units of Member Elk Horn 1,852,367 who had represented about a game of 17.5% in Elk Horn.  Cinergy purchased this position in November 2010 for $7,750,000 or approximately $4.18 per unit, and has since received $836,449 or approximately 45 per unit in aggregate cash distributions.    In addition, certain amounts were discarded escrowed under fusion for requests for compensation coverage and fresh Documents related and expenditure which, if not exhausted, could result in additional gross proceeds for Cinergy for an amount up to about 1.07 million dollars (environ.58 by Elk Horn unit). Jon Nix, the Cinergy President and CEO, commented: "we are pleased with the outcome of the Elk Horn operation, which has delivered superior to our shareholders the risk-adjusted returns."  Compatible with our broader procurement strategy, we have maintained flexibility during the course of this investment in a way that positioned us to be a buyer or a seller of a property that we regarded as strategic to our core business.  While we continue to execute our growth plan, we believe that the outcome of this transaction reflects considerable restraint and discipline, we strive to exercise on a consistent basis to ensure that all investments reach back hedges commensurate with the specific risks. Comments Cinergy Ltd.Headquartered in Knoxville, Tennessee, Cinergy Ltd., through its subsidiary full Corp. subsidiary Cinergy and its subsidiaries, is involved in mining coal in eastern Kentucky and West Virginia. Currently, Cinergy sells coal to high-quality public services of electricity and industrial enterprises in South-East of the United States. For more information, please visit www.xinergycorp.com.

Forward-looking information

This release contains "forward-looking information" which includes information about future events and future financial performance and operations, including the assessment of the direction of future prospects for the Cinergy.  The forward-looking information should not be interpreted as a guarantee of future performance or results and will not necessarily be accurate indications of the time at, or by which, as the performance or results will be achieved. The forward-looking information are based on the information available at this time, it is made or honest belief by the direction of then future events, and information are subject to risks and uncertainties that could cause actual performance or results differ significantly from those expressed in or suggested by the forward-looking information. Important factors that could cause these differences include, but are not limited to: changes in contract sales, the company may suffer from uncertainty concerning the coal market. the company may be affected by other economic, business, and/or competitive factors. global demand for coal; the price of coal; the price of alternative fuel sources. coal supply and other competitive factors. the cost of the mine and transport of coal; the ability to obtain new mines to permit; the cost of rehabilitation of previously mined properties; the risk of developing the production of coal; the ability to bring new mines on-line on schedule; competition in the industry. capacity of the company to continue to execute its growth strategies; and general economic conditions. These and other risks are more fully described in the deposits of the company with the Canadian securities, including information form annual for the year ended December 31, 2010, available on SEDAR at www.sedar.com. You must not put undue trust on any forward-looking information. We assume no obligation to update forward-looking information to reflect changes in the assumptions, actual results or changes in other factors having an impact on forward looking information, except to the extent required by applicable securities laws. If update us one or more of the forward-looking information, no inference should be made that we will make additional updates to those or other forward-looking information.

SOURCE Cinergy Ltd.

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