Statement re EDF Energy

UK Coal PLC 20 November 2007 20th November, 2007 UK COAL PLC ('UK COAL') UK COAL AND EDF ENERGY AGREE TERMS FOR POWER STATION COAL SUPPLIES UK COAL PLC, the UK'S biggest producer of coal and the developer of one of Britain's largest brownfield property estates, today announces it has agreed terms for the supply of coal to power generator EDF Energy over the next two years. This new agreement comes into immediate effect and supplements an existing contract. Taken together, these contracts will account for all power station coal anticipated from the current mining plans from UK COAL Welbeck Colliery in North Nottinghamshire. EDF Energy is a long standing core customer of UK COAL. All the coal will be supplied by rail to EDF Energy's Cottam and West Burton power stations. Jon Lloyd, UK COAL Chief Executive, said: 'This Welbeck contract secures the continued delivery of coal at improved prices, reflecting the delivered cost of internationally traded coal which has almost doubled in price over the past 12 months. 'This contract is a significant advance towards us achieving the current market value for our coal whilst giving the customer a reliable guaranteed supply right on its doorstep.' The EDF Energy contract follows an agreement last month for the supply of almost six million tonnes of coal to E.ON over the next five years. Most of that coal will be supplied from UK COAL's Daw Mill Colliery in the West Midlands UK COAL is also planning market priced 'spot sales' for coal produced across its portfolio of deep and surface mines. ENQUIRIES: Analysts and Investors: David Brocksom Tel : 01302 755005 Group Finance Director, UK COAL PLC Media: Citigate Dewe Rogerson Tel : 020 7638 9571 Anthony Carlisle Mobile : 07973 611 888 Laure Lagrange Mobile : 07768 698 731 Operations: Stuart Oliver Tel : 01525 381759 UK COAL PLC Mob : 07774 231 178 BACKGROUND NOTE: UK COAL is a mining, property and power company employing 3,100 people with its headquarters at Harworth Park, Harworth, near Doncaster, South Yorkshire. Britain's biggest producer of coal, UK COAL operates four deep mines in the Midlands and Yorkshire, and four surface mines in the North East, the North West, and the Midlands. Over 90% of UK COAL's annual output of almost nine million tonnes is sold to generate around 5% of Britain's electricity requirements. Welbeck Colliery, with a history dating back to 1912, employs almost 400 people. It has limited recoverable reserves, with production there expected to cease in 2009 under current mining plans. The property division, managed by Harworth Estates, owns around 47,500 acres of land and other property. With a RICS valuation of £398m, the Company estimates the portfolio land value in 2012 with the benefit of planning consents to be £900m. Over 70 sites, covering a developable area of over 3,300 acres have been identified for development, creating opportunities for building around 20,000 homes and 29 million square feet of employment space over the next six years. The power business, Harworth Power, includes the generation of electricity using engines to burn methane extracted from collieries for safety reasons, and the development of wind farms on 10 or more sites, mainly in the North East and the Midlands. For more information, please go to www.ukcoal.com This information is provided by RNS The company news service from the London Stock Exchange
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