Placing

UK Coal PLC
16 November 2006



16 November 2006



                    UK COAL plc ('UK COAL' or the 'Company')



                          Placing to raise £30 million

The Board of UK COAL announces that Bridgewell Limited has, on behalf of the
Company, completed a placing (the 'Placing') of 7.4 million new ordinary shares
of 1 pence each (the 'Placing Shares') at 406 pence per share to raise gross
proceeds of approximately £30 million. The placing price represents a premium of
approximately 2% to the closing mid-market price on 15 November.

The Placing has been undertaken in order to strengthen the Company's balance
sheet and increase financial flexibility which had become somewhat constrained
following reduced coal production during the summer. The proceeds of the Placing
will initially be used to reduce the Company's net debt.

The Placing Shares will, when issued and fully paid, rank pari passu in all
respects with the existing issued ordinary shares of the Company.

The Placing is conditional upon, inter alia, admission of the Placing Shares to
listing on the Official List of the UK Listing Authority and to trading on the
London Stock Exchange's market for listed securities (together 'Admission').



Application will be made for admission and it is expected that Admission will
become effective and dealings in the Placing Shares will commence no later than
8.00 a.m. on 22 November 2006.



ENQUIRIES:


UK COAL PLC                  Tel: [phone]

Garold (Gerry) Spindler
Chris Mawe


Bridgewell Limited           Tel: [phone]

Ian Dighe
James Renwick



CitiGate Dewe Rogerson       Tel: [phone]

Anthony Carlisle


                      This information is provided by RNS
            The company news service from the London Stock Exchange