Re Statement by Alchemy

UK Coal PLC
17 June 2005


17th June 2005

                                  UK Coal Plc

                Response to announcement by Alchemy Partners LLP

The Board of UK Coal Plc ('UK Coal' or 'the Company') notes yesterday's
announcement by Alchemy Partners LLP.

On 23 February 2005, the Company received a highly preliminary and tentative
written approach from Morston Assets Limited, which was subject to a number of
conditions and pre-conditions.

Despite repeatedly seeking clarification of material aspects of the approach,
satisfactory responses have either not been forthcoming or have been forthcoming
without sufficient clarity to address the Board's concerns.

Accordingly, UK Coal has no reason to believe the approach will lead to a
deliverable offer on terms acceptable to shareholders and, as announced on 8
June 2005, has terminated discussions.

Enquiries:

Gavin Anderson                       020 7554 1400
Ken Cronin






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