Holding in Company

UK Coal PLC
8 October 2001



                  DEALINGS BY SUBSTANTIAL SHAREHOLDERS


1)   NAME OF COMPANY

UK COAL


2)   NAME OF SHAREHOLDER HAVING A MAJOR INTEREST

RICHARD BUDGE


3)   Please state whether notification indicates that it is in respect of 
     holding of the Shareholder named in 2 above or in respect of a 
     non-beneficial interest or in the case of an individual holder if it is a
     holding of that person's spouse or children under the age of 18



4)   Name of the registered holder(s) and, if more than one holder, the 
     number of shares held by each of them.



5)   Number of shares/amount of stock acquired.



6)   (     %) of issued Class


7)   Number of shares/amount of stock disposed



8)   (   %) of issued Class



9)   Class of security

ORDINARY SHARES

10)  Date of transaction



11)  Date company informed

8.10.2001


12)  Total holding following this notification

NO LONGER HAS A NOTIFIABLE INTEREST

               
13)  Total percentage holding of issued class following this notification



14)  Any additional information

REDUCED HOLDING


15)  Name of contact and telephone number for queries

M GARNESS - 01302 751751

16)  Name and signature of authorised company official responsible for 
     making this notification

     Date of Notification ..... 8.10.2001 .......