VHGI Holdings, Inc. Extends Letter of Intent to Purchase Producing Coal Mine Operation in Indiana in order to Secure Consents

FT. WORTH, Texas, Dec. 9, 2011 /PRNewswire/ — VHGI Holdings, Inc. (OTC.QB:
VHGI) is pleased to announce that its wholly-owned operating company, VGHI Coal,
Inc., has extended its binding letter of intent until January 30, 2012, to
purchase, an Indiana-based company whose sole operations consists of operating a
coal mine in Indiana. VHGI and Rick Risinger, the sole shareholder of the mining
company, are in the process of finalizing the definitive transaction documents
and obtaining the various bank, third-party and regulatory consents necessary to
consummate the transaction. The parties intend to close this transaction as soon
as possible following receipt of such consents. VHGI Coal has already invested
approximately $4.5 million in the Company in order to build-out the
infrastructure and put the mine into full production by January, 2012.

Mr. Doug Martin, CEO and President of VHGI Holdings, has been spending virtually
all of his time at the mine site, assisting Mr. Risinger in financial and
operation issues. Upon the consummation of the transaction, Mr. Risinger will
become President of VHGI Coal. Doug Martin has taken over the role as acting CFO
of the company.

The company has the rights to mine a total of 2,800 acres, with verified
reserves of 21 million saleable tons of coal available, with the ability to
expand to an additional 80 million recoverable tons. The mine has received all
necessary regulatory approvals, and is currently in production. The mine is
currently shipping and producing approximately 130,000 tons of coal since August
2011, and is expanding production starting in January. The mine is strategically
located within 150 miles of multiple coal burning electrical generation
facilities, and has a rail spur adjacent to the property to facilitate a unit
train and transportation logistics on-site.

“By having this much acreage under direct control of this operation, and with
all the permits in place, we could not have crafted a better scenario for us to
enter this sector of the energy market,” stated Mr. Martin. “We see this as an
outstanding opportunity to expand VHGI’s footprint with an experienced and
professional team and to create significant value for our shareholders.” Also
Mr. Rick Risinger, an active Coal operator in the Illinois Basin will be
pursuing additional opportunities of growth for VHGI Coal as we complete the
transaction. “This brings together a solid management team for future
professional and financial strengths to further our coal development throughout
the Midwest,” stated Mr. Risinger.

Coal has many important uses worldwide. The most significant uses are in
electricity generation, steel production, cement manufacturing and as a liquid
fuel. Approximately 6.1 billion tons of hard-coal was used worldwide last year
and 1 billion tons of brown coal. Since 2000, global coal consumption has grown
faster than any other fuel. The five largest coal users – China, U.S., India,
Russia and Japan – account for 77% of total global coal use.

Different types of coal have different uses. Steam coal – also known as thermal
coal – is mainly used in power generation. Coking coal – also known as
metallurgical coal – is mainly used in steel production.

According to a recent U.S. Energy Department study, world-wide coal consumption
is expected to increase by 65% between 2005 and 2030. The U.S. share of world
energy consumption could increase over that period from 27% to 29%, and the
proliferation of clean-burning technologies could lead to even greater demand.

The above acquisition is subject to various conditions precedent, and there can
be no assurances that the acquisition will be consummated, and if consummated,
the final terms thereof.

About VHGI and VHGI Coal

VHGI is a diverse company with assets and interests focusing on opportunities
within the Energy and Mining Markets, Precious Metals and Healthcare Technology
Industry. VHGI Coal Inc., a wholly owned subsidiary of VHGI has recently
initiated steps to leverage the company’s operating history and corporate
resources within the Coal Mining industry and intends to pursue these
opportunities through Lease-Purchase, Acquisitions and Joint Ventures
opportunities.

“Safe Harbor” Statement:

The statements in the press release that relate to the company’s expectations
with regard to the future impact on the company’s results from new products in
development and any other statements not constituting historical facts are
“forward-looking statements,” within the meaning of and subject to the safe
harbor created by the Private Securities Litigation Reform Act of 1995. Since
this information may contain statements that involve risk and uncertainties and
are subject to change at any time, the company’s actual results may differ
materially from expected results. This document may contain forward-looking
statements concerning the Company’s operations, current and future performance
and financial condition. These items involve risks, contingencies and
uncertainties such as product demand, market and customer acceptance, the effect
of economic conditions, competition, pricing, the ability to consummate and
integrate acquisitions, and other risks, contingencies and uncertainties
detailed in the Company’s SEC filings, which could cause the company’s actual
operating results, performance or business plans or prospects to differ
materially from those expressed in, or implied by these statements. The Company
undertakes no obligation to revise any of these statements to reflect the future
circumstances or the occurrence of unanticipated events.

Investors are invited to obtain information concerning our operations at
http://www.vhgiholdings.com or by calling shareholder relations at (954)
548-3086 or emailing info@vhgicoal.com.

For Further Information: Contact Mr. Douglas P. Martin

Shareholder Relations – Communications: (954) 548-3086

SOURCE VHGI Holdings, Inc.