Sale of Monckton

UK Coal PLC
17 June 2005



17th June 2005
                                  


                                  UK COAL PLC
                Sale of Monckton Coke & Chemical Company Limited


The Board of UK COAL plc ('UK COAL') is pleased to announce that it has today
completed the sale of its wholly owned subsidiary, Monckton Coke & Chemical
Company Limited to Hargreaves (UK) Limited.

The total consideration for the sale is £12 million (subject to a pound for
pound working capital adjustment), consisting of cash. £8 million is payable on
completion of the sale and two further sums, each of £2 million, are payable on
the first and second anniversaries of completion. UK COAL expects to realise a
profit on disposal of approximately £0.4m.

The proceeds of the sale will be used to enhance UK COAL's core mining and other
commercial activities.

As part of the agreement, UK COAL has also entered into a long-term contract to
supply coal at market prices to Monckton for the production of coke. The coal
will be supplied from Maltby Colliery, near Rotherham.

Monckton was acquired by UK COAL in 1994. The Company manufactures around
200,000 tonnes per annum of high quality coke and associated by-products from
its facility on a 35-acre site at Royston, South Yorkshire and sells its
products into the specialist industrial and domestic markets both in the UK and
abroad. The operation employs 105 people. In the year ended 31 December 2004,
Monckton achieved sales revenues of £19.8 million and profits before tax of £0.2
million. The book value of Monckton's net assets, including inter-company
indebtedness, was £0.7m as at 31 December 2004.

Gerry Spindler, Chief Executive of UK COAL, said: 'Hargreaves is a major player
in the solid fuel market and the production facilities at Monckton will fit
comfortably with its expanding role in fuel distribution. The sale has been
completed at a value reflecting relatively high prices across the energy
spectrum, and will enable UK COAL to focus on its mining and other business
activities, whilst maintaining an ongoing commercial relationship with the
supply of coal for coke production.'

For further information:

UK COAL PLC

Financial                 Ken Cronin         Tel: [phone]
                                             Mobile: [phone]

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















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