Reprieve for Welbeck Colliery

UK Coal PLC
24 February 2005



                                                              24th February 2005

              NEW AGREEMENT LEADS TO REPRIEVE FOR WELBECK COLLIERY
             -----------------------------------------------------

Further to the announcement on February 10th 2005 of the closure of Welbeck
Colliery due to an uneconomic mining plan, UK COAL is reporting that an
overwhelming majority of the colliery's 520-strong workforce has since agreed to
work new shift patterns, which will increase machine utilisation time by almost
40%. Forecast production gaps of up to three months costing around £1m a week
will be eliminated, enabling the colliery to produce around 1.5 million tonnes
of coal a year. As a result UKCOAL has agreed, subject to achievement of key
performance targets, to suspend plans to close the colliery.

UK COAL Chief Executive Gerry Spindler said: 'The workforce and the unions have
broken the mould which defined costs and condemned pits to closure in the past.
It has required the best ideas and an unequivocal commitment from the workforce,
and I am privileged to work with them'.

As a result of the new working arrangements, the review of the carrying value of
the assets associated with Welbeck and a charge of around £13m in the 2004
accounting period, as announced previously is now not considered necessary.


MEDIA CONTACTS:

UK COAL
Financial: Ken Cronin                                 Tel: [phone]
(Gavin Anderson & Company)                            Mob: [phone]

Operational: Stuart Oliver                            Tel: [phone]
                                                      Mob: [phone]





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