Sale of Maltby Colliery

UK Coal PLC
27 February 2007

27 February, 2007




                             UK COAL PLC ('UK COAL')

                             Sale of Maltby Colliery


UK COAL announces that its subsidiary, UK Coal Mining Limited ('UKCML') has
today completed the sale of its deep mine operations at Maltby Colliery 
('Maltby'), together with a transfer of operational assets and liabilities to a
recently incorporated company, Maltby Colliery Limited ('MCL'), which is part of
the Hargreaves Services plc ('Hargreaves') group of companies.


The total cash consideration paid on completion was £21.5 million, subject to
any post-completion adjustment in respect of surface coal stocks held at Maltby,
and will give rise to a profit of some £13 million.  The book value of Maltby's
gross assets was £15.8 million as at 31 December, 2006.


Maltby, located near Rotherham in South Yorkshire, last year produced
approximately 750,000 tonnes of coal and recorded an operating loss of some
£18.2 million on turnover of some £32.7 million.  The mine employs around 470
people, who will now transfer to MCL.


Maltby has had a long-established relationship with Hargreaves, which has been
the mine's second largest customer and is the UK's largest independent producer
and distributor of coke products.  The metallurgical coal which Maltby produces
is ideally suited to Hargreaves' needs.  The proceeds of the sale will be used
to reduce borrowings.


In order to facilitate the sale of Maltby, UKCML's coal supply contract with one
of its customers, Drax plc, has been varied by mutual agreement to delete
reference to Maltby Colliery as a specified point of supply.


Gerry Spindler, Chief Executive of UK COAL, said: 'This is a sale that benefits
all parties. Hargreaves is a major player in the solid fuel market and Maltby
will fit comfortably with its business of producing quality smokeless fuels and
in fuel distribution.  It will promote the production lifetime and the security
of employment at Maltby.  For UK COAL, it secures a profit on disposal and
enables us to focus on our core deep mining activities, whilst decreasing
operational risks and, in parallel, continuing to develop our expanding property
business.'


Gordon Banham, Chief Executive Officer of Hargreaves, said: 'We are delighted to
have reached this agreement with UK COAL.  This is a unique opportunity for us
to acquire a well established British coking coal mine which is an ideal fit
within the Hargreaves range of services.  The acquisition will safeguard the
jobs of the approaching 500 employees who work there and I am delighted to take
Maltby forward as part of the enlarged Hargreaves group.'


                                    - Ends -


Enquiries:

UK COAL PLC                                            Tel: [phone]
Gerry Spindler, Chief Executive
Chris Mawe, Finance Director                           Mobile: [phone]

Media
Citigate Dewe Rogerson                                 Tel: [phone]
Anthony Carlisle                                       Mobile: [phone]
Laure Lagrange                                         Tel: [phone]
Brett Jacobs                                           Tel: [phone]

Hargreaves Services plc                                Tel: [phone]
Gordon Banham, Chief Executive Officer
Peter Dillon, Financial Director

Media
Buchanan Communications                                Tel: [phone]
Diane Stewart
Tim Anderson





                      This information is provided by RNS
            The company news service from the London Stock Exchange