Trading Statement

UK Coal PLC
26 November 2001
                                                             26 November 2001
                                  UK COAL PLC

                                Trading Update


UK COAL PLC is hosting a site visit for analysts today to its mine at Harworth
in Nottinghamshire. In conjunction with the visit the Company is providing the
following update on trading.


Production performance at its deep mines has shown an improvement in the
second half of the year, but continues to be lower than expectations. The
Company's deep mines are now likely to produce around 8 million tonnes in the
second half compared to 7.6 million tonnes in the period to the end of June.



Further production improvement has been hampered by a delay in the
commencement of production in new reserves at Daw Mill Colliery, Warwickshire,
due to start in November and now likely to begin in April 2002. There has also
been a loss of output at Rossington Colliery, Doncaster over a 12 week period
due to industrial action. Production will recommence at Rossington this week.



The initiative to reduce costs and change working methods - Project 105 -
which started in the summer, is making good progress. Several measures
focusing on the need for change, cost reduction and production improvements
have already been implemented, and others are being formulated and planned,
providing benefits within the course of the next 12-18 months.



The Company has continued its investments in mine development and in plant and
equipment. Sales volumes have been maximised and cash flow for the year
remains strong.



Good progress continues to be made on the property portfolio.



The long-term viability of the deep mine business continues to be examined.
The Company has identified mines where there is potential for significant
improvements in productivity to be achieved and is reviewing those operations
where geological or other uncertainties increase the risk of uneconomic
production.



Enquiries:


Gordon McPhie, Chief Executive
UK COAL PLC                                                 01302 751 751

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

Operational:
Stuart Oliver                                               01525 381 759