Peter I.

Shah
132 Montfort Drive
Belle Mead, NJ 08502
(908) 432 5030

April 16 2010

Richard M. Shea
President
And
Board of Directors
Anthracite Capital Inc
40 East 52nd Street
New York, NY 10022

Dear Mr. Shea: Re: Chapter 7 filings

I am a shareholder of Anthracite Capital, Inc.

I have learned that the Board of Directors has decided to take Anthracite Capital in Chapter
7 bankruptcy protection. I am very surprised by this move by the Board. I have many
questions regarding this filing and also about management. In this letter, I will ask a few
of them.

1. Why did Anthracite decide to file under Chapter 7 and not Chapter 11?

2. Why did Anthracite file voluntarily?

3. How many of Anthracite’s subsidiaries have filed for bankruptcy under Chapter 7?

4. In its bankruptcy filings, Anthracite listed total assets between $100 million and $500
million, but liabilities between $500 million and $1 billion. As a comparison, at the end of
September 2009, Anthracite had reported assets were $2.6 billion. Through the first nine
months of last year 2009, Anthracite reported losses totaling $118.8 million and had seen
its unrestricted cash and equivalents drop from more than $9.6 million at the start of the
year to 297,000 on 9/30/2009. What happened to 9.3 million dollars?

5. I was informed by the Chapter 7 trustee that they were given approximately 1.27
million dollars cash. Does this include cash from all the subsidiaries?
Mr. Shea, please pardon me if any of these questions offend you. But please understand
that I have no answers to any of these questions. I have asked you some very simple and
basic questions here. I have many more questions unanswered and so I need your help in
this regard, as you can see all of these questions remain unanswered. I believe it is your
fiduciary duty to get this information out to the public, and especially to shareholders.

Thank you for your time.

Awaiting your reply,

Sincerely,

Peter I. Shah
Shareholder