X0303 4 2008-06-09 0001297720 James River Coal CO JRCC 0001133521 STEELHEAD PARTNERS LLC 1301 FIRST AVENUE, SUITE 201 SEATTLE WA 98101 0 0 0 1 See footnotes 0001327721 JOHNSTON JAMES MICHAEL 1301 FIRST AVENUE, SUITE 201 SEATTLE WA 98101 0 0 0 1 See footnotes 0001327722 KLEIN BRIAN KATZ 1301 FIRST AVENUE, SUITE 201 SEATTLE WA 98101 0 0 0 1 See footnotes Call Options (obligation to sell) 50.00 2008-06-09 4 S 0 500 622.88 D 2008-06-09 2008-12-20 Common Stock 50000 500 I (1) (2) (3) Call Options (obligation to sell) 50.00 2008-06-09 4 S 0 500 680.88 D 2008-06-09 2008-12-20 Common Stock 50000 500 I (1) (2) (3) The reporting persons are: (i) Steelhead Partners, LLC ("Steelhead"), a registered investment advisor within the meaning of Rule 16a-1(a)(1)(v) under the Exchange Act; and (ii) each of James Michael Johnston and Brian Katz Klein, Steelhead's member-managers. The securities reported on this Form 4 are held directly by certain investment limited partnerships and/or client accounts (the "Funds") for which Steelhead is the general partner and/or investment manager. None of the Funds is itself the beneficial owner of more than 10% of the issuer's common stock. Each of Steelhead, Mr. Johnston, Mr. Klein and the Funds expressly disclaims beneficial ownership in these securities, except to the extent of their respective pecuniary interests therein. Although none of the Funds is itself the beneficial owner of more than 10% of the issuer's common stock, Steelhead and the other reporting persons may be deemed to beneficially own the securities owned by the Funds insofar as they may be deemed to have the power to direct the voting or disposition of such securities. The reporting persons have elected therefore to file this Form 4 voluntarily to report the Funds' holdings on an aggregate basis, notwithstanding the reporting exemption applicable to registered investment advisors under Rule 16a-1(a)(1)(v) and to control persons under Rule 16a-1(a)(1)(vii). The filing of this Form 4 should not, however, be deemed an admission by any of the reporting persons that such person falls outside the scope of the foregoing exemptions, or that the reporting persons and/or the Funds form a group within the meaning of Rule 16a-1(a)(1). Steelhead Partners, LLC; By: James Michael Johnston, its Member-Manager; /s/ James Michael Johnston 2008-06-25 James Michael Johnston; /s/ James Michael Johnston 2008-06-25 Brian Katz Klein; /s/ Brian Katz Klein 2008-06-25