Cloud Peak Energy Receives Court Approval of “First Day” Motions to Support Business Operations

Obtains Interim Approval to Access $10 Million of its $35 Million
Debtor-in-Possession Financing

Mines to Continue Normal Operations

GILLETTE, Wyo.–(BUSINESS WIRE)–Cloud Peak Energy Inc. (OTC: CLDP) (“Cloud Peak Energy” or the
“Company”), the only pure-play Powder River Basin (“PRB”) coal company,
announced today that the Company has received interim approvals from the
U.S. Bankruptcy Court for the District of Delaware for all the “First
Day” motions related to the voluntary Chapter 11 petitions filed on May
10, 2019.

Colin Marshall, President and Chief Executive Officer of Cloud Peak
Energy, commented, “We are pleased to have received interim approval of
our First Day motions, which will allow us to continue operating as
normal as we continue the sale process for all of Cloud Peak’s assets.
As we move through this process, we remain focused on safely and
efficiently meeting our customer commitments. I would like to thank our
employees, customers and business partners for their continued support.”

The Court granted Cloud Peak Energy interim approval to access $10
million of up to $35 million in debtor-in-possession (“DIP”) financing.
The $35 million DIP financing, combined with the Company’s cash on hand
and funds generated from ongoing operations, is expected to provide
sufficient liquidity for the Company to continue operating in the
ordinary course during the sale process. In addition, Cloud Peak Energy
received Court approval to, among other things, continue payment of
employee wages, salaries and benefits without interruption, and to pay
vendors, suppliers and other providers essential to the Company’s
business in full for goods and services provided after the filing date.
The Company also received approval to continue entering into and
fulfilling orders under sales contracts with customers in the ordinary
course of business.

Additional Information

Additional information is available at Cloud Peak Energy’s restructuring
website at https://cloudpeakenergy.com/restructuring-information.
Court filings and information about the claims process are available at https://cases.primeclerk.com/cloudpeakenergy/,
by calling the Company’s claims agent, Prime Clerk LLC, toll-free at
844-217-3067 or local at 347-761-3264 or emailing cloudpeakinfo@primeclerk.com.

Vinson & Elkins LLP is serving as legal advisor, Centerview Partners LLC
is serving as investment banker and FTI Consulting, Inc. is serving as
financial advisor to Cloud Peak Energy.

About Cloud Peak Energy®

Cloud Peak Energy Inc. (OTC:CLDP) 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 2018, Cloud Peak Energy sold approximately 50 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 our ability to continue as a going concern,
our ability to successfully complete a sale process under Chapter 11;
potential adverse effects of the Chapter 11 cases on our liquidity and
results of operations; our ability to obtain timely approval by the
United States Bankruptcy Court for the District of Delaware (the
“Court”) with respect to the motions filed in the Chapter 11 cases;
objections to our sale process or other pleadings filed that could
protract the Chapter 11 cases; employee attrition and our ability to
retain senior management and other key personnel due to the distractions
and uncertainties, including our ability to provide adequate
compensation and benefits during the Chapter 11 cases; our ability to
comply with the restrictions imposed by our Accounts Receivable
Securitization Program (the “A/R Securitization Program”), the DIP
financing and other financing arrangements; our ability to maintain
relationships with suppliers, customers, employees and other third
parties and regulatory authorities as a result of the Chapter 11 filing;
the effects of the bankruptcy petitions on our company and on the
interests of various constituents, including holders of our common
stock; the Court’s rulings in the Chapter 11 cases, and the outcome of
the Chapter 11 cases generally; the length of time that we will operate
under Chapter 11 protection and the continued availability of operating
capital during the pendency of the proceedings; risks associated with
third party motions in the Chapter 11 cases, which may interfere with
our ability to consummate a sale; and increased administrative and legal
costs related to the Chapter 11 process and other litigation and
inherent risks involved in a bankruptcy process. 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.

Contacts

Cloud Peak Energy Inc.
(720) 566-2932
Investor Relations
Meaghan
Repko / Andrew Squire
Joele Frank, Wilkinson Brimmer Katcher
(212)
355-4449