AGM Statement

UK Coal PLC
27 April 2004


                                                                   27 April 2004


                                   UK COAL PLC                                                                          
                                  AGM STATEMENT


At the AGM, which will be held at 1pm today, the Chairman, David Jones will say:


UK COAL's production for the first three months was 3.8 million tonnes (2003:
5.1 million tonnes) with 3.2 million tonnes from the deep mines (2003: 4.1
million tonnes) and 0.6 million tonnes from surface mines (2003: 1.0 million
tonnes).


The lower production at the deep mines compared to 2003 is a result of reduced
deep mine operational performances and face changes at Maltby and Kellingley.
Production has also been lost at Kellingley due to continuing industrial action
in respect of the introduction of flexible working. We are focusing on
programmes to improve productivity and to reduce unit costs.


Surface mine production reduced as anticipated due to difficulties in obtaining
planning permissions for new mines.


On 2 April, UK COAL announced the sale of its 97% investment in Gloucester Coal
Limited for A$52.1 million (£21.5 million) the Company's mining activity in New
South Wales, Australia. The cash consideration has been received.


We have recently received an offer of £2.2 million of Investment Aid from the
DTI for Ellington Colliery. This, together with a new agreed two-year contract
with Alcan commencing in October, will allow mining to continue.


UK COAL PLC
Gordon McPhie,                                     01302 751 751
Chief Executive

Financial
Gavin Anderson & Company
Liz Morley                                         020 7554 1400
Ken Cronin                                         020 7554 1400

Operational
Stuart Oliver                                      01525 381 759





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