Possible Disposal

UK Coal PLC
31 July 2001
                                                                    31 July 2001


UK COAL PLC

                       POSSIBLE OFFER FOR CIM RESOURCES

The Board of UK COAL PLC has been approached by a number of parties who have
expressed an interest in CIM Resources Ltd, Australia and the assets of CIM.

UK COAL currently has a 97% stake in CIM and the expressions of interest may
or may not lead to an offer being made for CIM.

Enquiries:

Liz Morley/Fiona Grant Duff
Gavin Anderson & Co                                      020 7457 2345