Trading Statement

UK Coal PLC
26 April 2005


                                TRADING STATEMENT

At the AGM which will be held at 1.00pm today, the Chairman, David Jones will
say:

Losses for the first quarter on continuing operations have been in line with
expectations. Deep Mine Production in our 7 ongoing mines in the first 3 months
was 2.1 million tonnes (2004 2.0 million tonnes). Surface mine output was 0.3
million tonnes (2004 0.6 million tonnes).

We have seen some performance improvement in the deep mine business, offset by a
production shortfall at Harworth colliery which was halted for a period in
January and February due to excess methane. Additional drainage and ventilation
equipment is being installed to disperse as well as capture and utilise this
gas, and production has been resumed.

Surface mines production was in line with expectations on lower operating costs
and we continue to work hard to obtain additional planning permissions to secure
the future of this business.

The second quarter will include a face gap at Daw Mill which was not
anticipated. However, a combination of price increases and improved performance
in the second half is expected to compensate.

Enquiries:

Gavin Anderson & Company                     020 7554 1400
Ken Cronin                                   07887 591 499
Michael Turner                               07775 992 415

UK Coal
Stuart Oliver                                07774 231 178



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