Position re TXU

UK Coal PLC
20 November 2002




20 November 2002

U K COAL PLC


Following the news announcement of Tuesday 19th November 2002 that TXU Europe
(TXU) went into administration, UK COAL PLC wishes to clarify its position.

UK COAL has two offsetting financial relationships with TXU.

Firstly, UK COAL has supplied coal to the value of approximately £6 million for
which payment is not yet due. UK COAL therefore anticipates taking an
exceptional charge within the profit and loss account for the year ended 31st
December 2002.

Secondly, termination of contracts in place with TXU releases UK COAL from
certain obligations that would save approximately £5 million in April 2003.

All coal supplied to TXU was being sold on by them to other generators. UK COAL
is discussing with these generators maintaining deliveries through direct sales
to them.


Contact

Gordon McPhie                                                01302 751 751
Chief Executive, UK Coal plc

Liz Morley                                                   020 7554 1400
Gavin Anderson & Company




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