Harworth Colliery update

UK Coal PLC
12 June 2006



                                  UK COAL PLC

12 June, 2006


                    HARWORTH COLLIERY MOTHBALLING CONFIRMED


UK COAL today confirms that it is to proceed with the mothballing of Harworth
Colliery as previously announced.

The decision is a result of being unable to secure a sales contract to justify
the investment request to access further coal reserves at the Colliery.

A statutory notice advising of redundancies following a 90-day consultation
period is being issued. UK COAL will, however, continue to work towards a
commercial solution within this period.


At the time of the initial mothballing decision, the Group reported it had
retained fixed assets at the colliery with a value of £12 million. Since then a
further £3 million has been invested to develop access to further reserves.
These asset values will be reviewed for impairment and dependent upon
the expected value of the remaining underground reserves, there may be a future
non cash write off.


UK COAL Chief Executive Gerry Spindler said: 'Everyone has worked tirelessly to
find a solution. The performance and dedication of the workforce at Harworth has
been exemplary. We have all worked extremely hard to save the colliery at a time
of increasing demand for coal, and will continue to do so.'


MEDIA CONTACTS:


Financial

Gavin Anderson & Company                             020 7554 1400

Ken Cronin
Michael Turner

Operational

Stuart Oliver                                         01525 381759

                                                      07774 231178


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