Directors' Interests

UK Coal PLC
18 October 2004



                                                                 18 October 2004

                                UK COAL PLC

                    NOTIFICATION OF DIRECTORS' INTERESTS


UK COAL plc (the Company) wishes to notify the following changes in Directors'
interests arising out of the maturity of awards under its Long Term Incentive
Plan (LTIP).

The performance period for these awards was the three financial years 2001-2003.

On 18 October 2004, the following ordinary shares in the Company (Shares) were
transferred to the Directors named below who have exercised their right under
the LTIP rules to receive Shares awarded in October 2001. The total shareholder
return over the performance period was 175% resulting in the vesting of 100% of
the Shares under awards. In connection with the vesting of the awards, the
Trustee of the UK Coal Employee Share Trust (the Trust) has in accordance with
the rules adjusted the number of Shares under awards to take account of
reinvestment of dividends paid over the period 2001 - 2003 inclusive. The result
of this adjustment has been to increase the number of Shares under each award by
41.9%. The adjusted number of Shares available to participants is as set out
below:

     Name of Director                                 No of Shares
     P S O'Brien                                      240,130
     M Garness                                        225,937

The rules require that sufficient shares are sold to discharge the PAYE tax/NI
liability on the Shares released. In consequence, the Shares set out in the
second column below were sold on 18 October 2004 at a price of 159p per Share,
leaving the after-tax number of Shares set out the final column below.

     Name of Director     No of Shares Sold            No of Shares Retained
     P S O'Brien          98,453                       141,677
     M Garness            92,634                       133,303

As a result of the transactions referred to above, the interests of the
Executive Directors named above in Shares (other than Shares to which they may
become entitled, subject to satisfaction of any relevant conditions, under the
Long Term Incentive Plan or the Bonus Share Matching Plan) are as follows:

     Name of Director                                 No of Shares
     P S O'Brien                                      545,681
     M Garness                                        249,230

In addition, the UK COAL Employee Share Trust holds a total of 34,661 Shares to
satisfy the cumulative potential entitlements of the Executive Directors named
above under the Bonus Share Matching Plan. Each of these Executive Directors is
deemed for Companies Act purposes to have an additional interest in all these
further Shares held by the Trust.


                                   M Garness
                          Director & Company Secretary



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