Item 8.01 Other

We have been advised by Yorktown Energy Partners VI, L.P., an investor for the last six years, that it has distributed 750,000 shares (less than 3% of the outstanding shares) of Hallador common stock to its limited and general partners, effective after the close of the stock market on November 19, 2012. After the distribution, Yorktown Energy Partners VI, L.P. along with Yorktown Energy Partners VII, L.P. and Yorktown Energy Partners VIII L.P. will collectively hold about 11 million shares of Hallador common stock representing about 39% of total shares outstanding.

Hallador has been informed by Yorktown Energy Partners VI, L.P., Yorktown Energy Partners VII, L.P., and Yorktown Energy Partners VIII, L.P. that they have not made any determination as to the disposition of their remaining Hallador stock.

Yorktown has distributed a total of 4.5 million shares since May 2011. While we do not know Yorktown's ultimate strategy to realize the value of their Hallador investment for their partners, we expect that over time distributions such as this will improve our liquidity and float.