AGM Trading Statement

UK Coal PLC
02 May 2006


                                  UK Coal PLC

                               Trading Statement

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

'Further progress has been made, both operationally and corporately, during the
first quarter. In addition to continuing to trade on a profitable basis, we have
made progress on obtaining planning permissions for both our surface mining and
property businesses and strengthened the Group's senior team with the
appointment of Mike Toms and Jon Lloyd to the Board.

The Group returned to profitability in the final quarter of 2005. I am pleased
to report that our Deep Mines continue to perform profitably and the Group
recorded a profit before tax of £1.1 million for the first quarter of 2006.

Output from the Group's deep mines amounted to 2.9 million tonnes (2005: 2.2
million tonnes). Whilst this production was some 0.5 million tonnes below
management expectation, we believe we can make this production shortfall up in
the remaining three quarters of the year.

With only one operating surface mine, surface mine production in the quarter was
only 0.1 million tonnes (2005: 0.3 million tonnes from six sites).As reported
previously, planning consent has been received for two further locations, which
are expected to commence operations during the second half of 2006.

The property business continues to make progress. Notable events in the year to
date include gaining planning permission for the industrial use of the Gascoigne
Wood site and the completion of the first building of Phase 1 of the Bilsthorpe
development. There were no major property disposals in the first quarter of the
year.

Our other businesses continue to perform to expectations'.

Enquiries:

Financial
Gavin Anderson & Company                   020 7554 1400
Ken Cronin
Michael Turner

Operational
Stuart Oliver                              07774 231 178














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