Crestview Capital Increases Investment in National Coal to $4.9 Million.

Business Editors

KNOXVILLE, Tenn.--(BUSINESS WIRE)--March 3, 2004

National Coal Corporation (Pink Sheets:NLCP) announces today that it has completed the restructuring of its short-term debt. The aggregate principal debt in the amount of $3,465,000, plus unpaid interest, for four separate notes was purchased by Crestview Capital Master, LLC. Concurrent with the repurchase of this debt, Crestview agreed to extend the maturity date on all four notes to March 25, 2005 and to modify certain provisions. The interest rate remains at 12% per annum. Two of the original notes, in the aggregate principal amount of $3.2 million, each of which had a conversion option into common shares of the Company, have been modified to preclude conversion if the issuance would cause Crestview to own more that 9.99% of the then outstanding equity in National when computed in accordance with Section 13d. Crestview also purchased warrants from the debt holder concurrently issued with the original two notes. Those warrants allow for Crestview to purchase 1,597,250 shares of common stock at a price per share equal to $0.55 until March 25, 2005.

Crestview Capital Master, LLC previously purchased 2,600,000 shares of National Coal common stock in conjunction with a previously announced private placement. This now brings Crestview's total investment with the Company to approximately $5 million.

This notice does not constitute an offer to sell, or the solicitation of an offer to buy, securities. The securities noted herein have not been registered under the Securities Act of 1933, or the securities laws of any jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933.

NOTE: This release contains statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current estimates and projections about National Coal's business, which are derived in part on assumptions of its management, and are not guarantees of future performance, as such performance is difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors. Such factors include, but are not limited to, those described in National Coal's Quarterly Report on Form 10-QSB for the three-month period ended September 30, 2003, which are filed with the U.S. Securities and Exchange Commission. Readers of this release are referred to those filings.

About National Coal Corporation

Formed in January 2003, National Coal Corporation owns the coal mineral rights, and is currently mining and producing coal, on approximately 65,000 acres in Eastern Tennessee.

Contact Robert Chmiel or Jon Nix, CEO at 865-769-3749 or at [e-mail] for further information. www.nationalcoal.com.

About Crestview Capital Funds

Crestview Capital, an Illinois-based private equity fund, has in excess of $100 million under management and has completed over 70 investments since inception. Crestview currently has over 90 different deal sources around the US and in Western Europe. www.crestviewcap.com.