Trading Statement

UK Coal PLC
15 October 2007


15 October 2007


                                  UK COAL PLC
           Trading update for the nine months ended 30 September 2007


                            Continued good progress

UK COAL PLC ('UK COAL' or the 'Group') today provides the following trading
update for the nine months ended 30 September 2007.

Trading has been in line with expectations, and the Group has continued to make
further good progress in all its businesses. Our focus remains on improving
performance across our mining operations, realising the significant value in our
property portfolio and developing our renewable power generation business. We
remain confident of delivering further shareholder value growth for the full
year and beyond.

Property

Harworth Estates continues to make strong progress, adding further value through
planning consents and applications and through the development of our pipeline
of 71 projects covering 3,326 acres.

We have gained four planning consents since the half year - at our Advanced
Manufacturing Park in South Yorkshire, at Gascoigne Wood in North Yorkshire, and
at Arkwright and Tetron Point in Derbyshire. Three more are in the planning
system awaiting determination, including planning consent expected in the fourth
quarter at our Prince of Wales site in Pontefract, West Yorkshire, involving 913
houses and 250,000 sq ft of commercial use. At Waverley, near Sheffield, we have
commenced development of the Highfield Commercial area, to be followed by a
major residential development. We have also completed decommissioning and
demolition at the former Rossington Colliery which will be a major mixed use
development project in the medium term.

Our business park proposals for the former mine at Gascoigne Wood near Selby,
North Yorkshire, gained planning consent in August. This site is of strategic
importance on the rail network and is being actively marketed for both the rail
facility and related distribution space.  Also at Selby, we have agreed terms to
let half of our new business park at Riccall to one tenant since gaining
planning permission in June. At Asfordby Business Park, Leicestershire, we have
agreed a pre-let on a new 24,000 sq ft office and distribution building.

Work on our Joint Venture initiatives advanced well in the quarter, receiving
planning consent with Strategic Sites Limited (SSL) to construct up to 100,000
sq ft of commercial buildings on our Waverley Advanced Manufacturing Park
between Sheffield and Rotherham. A further JV application is being developed
with SSL for our Houghton Main site, near Barnsley, South Yorkshire, and we are
currently finalising selection of a JV partner for a 100 acre rail-connected
scheme at Bennerley near Nottingham.

We welcome the recent announcements by the Government on planning and
development issues and particularly the significantly increased targets for new
housing in the Midlands and North of England.

Deep mining

Our four deep mines achieved their highest quarterly output this year of 1.93
million tonnes, totalling 5.25 million tonnes for all deep mines for the nine
months. Fourth quarter output is expected to be circa 1.7 million tonnes,
allowing Daw Mill and Welbeck collieries to complete face changes, and both Daw
Mill and Kellingley to work through geological faults.  Kellingley output is
expected to continue at reduced levels into 2008 until higher quality reserves
in the Beeston seam are accessed. Good progress is being made in this major
development, scheduled to commence production in mid-2009.

Surface mining

Surface mining output has continued to grow, achieving 1.04 million tonnes
output in the nine months to September across four sites. Third quarter output
reached 0.34 million tonnes despite exceptionally wet weather.

Three more sites with the following estimated reserves are expected to commence
production in the fourth quarter, at Steadsburn, Northumberland (1.1 million
tonnes), Long Moor, Leicestershire (0.7 million tonnes), and Sharlston, West
Yorkshire (0.36 million tonnes). Production is expected to commence in summer
2008 at Lodge House, Derbyshire (1 million tonnes).

Planning decisions are expected for Potland Burn, Northumberland (estimated 2
million tonnes) in the fourth quarter, and for Park Wall North, County Durham
(estimated 1.25 million tonnes) in Spring 2008. Planning submissions are
expected to be made over the next year for reserves estimated to exceed 4.9
million tonnes.

Coal market

Coal forward market prices have continued to strengthen and we expect to secure
improved prices which more closely reflect international levels as we negotiate
new contracts, including our recently announced contract to supply E.ON with up
to six million tonnes of coal to 2012.

                                      Ends

Enquiries:
Media:
Financial: Citigate Dewe Rogerson           Tel:    [phone]
Anthony Carlisle                            Mobile: [phone]
Laure Lagrange                              Mobile: [phone]

Operations:
Stuart Oliver                               Tel:    [phone],
                                            Mobile: [phone]

Analysts and investors:
UK COAL PLC                                 Tel: [phone]
David Brocksom, Finance Director


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