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UK Coal PLC (HWG)

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Friday 17 March, 2006

UK Coal PLC

Joint Venture Agreement

UK Coal PLC
17 March 2006


                                  UK COAL PLC

                            JOINT VENTURE AGREEMENT

UK COAL Plc and Hargreaves Services plc today announce the intended formation of
a 50:50 joint venture company, Coal 4 Energy Ltd.


The new company will market and distribute coal products to the domestic and
light industrial markets. Planned to commence trading on 1st April 2006, the new
company will have an annual turnover in the region of £50 million.


UK COAL, Britain's biggest coal producer, already has a long term trade
relationship with Hargreaves who have the largest bulk delivery fleet in the UK,
and are the largest independent importers of domestic and industrial coal.


The combination of UK COAL and Hargreaves in this joint venture brings together
key producers and suppliers of domestic and industrial coal in the United
Kingdom. The new venture will be located at Kellingley Colliery in West
Yorkshire, currently a major source of coal for the industrial and domestic
markets.


The productive capacity of UK COAL, together with the logistical and marketing
skills of Hargreaves, will enable both parties through Coal 4 Energy Ltd, to
meet market demand in a more efficient and cost effective way, which will be of
benefit to the consumer.


For further information:


UK COAL

Financial                     Ken Cronin             Tel: 0207 554 1400
                                                     Mob: 07887 591 499

Operational                 Stuart Oliver            Tel: 01525 381759
                                                     Mob: 07774 231178

HARGREAVES

                           Gordon Banham             Tel: 0191 373 4485
                           Peter Dillon              Tel: 0191 373 4485


Buchanan Communications    Diane Stewart             Tel: 0207 466 5121


Bergmans PR Consultants    Robin Ashby                Tel: 0191 232 1332


Background notes:


UK COAL: With its headquarters at Harworth, near Doncaster, UK COAL is Britain's
biggest coal producer, with output last year of 10 million tonnes. The company
operates seven deep mines and produces a range of power station, industrial and
domestic coal.


HARGREAVES: Based in County Durham, Hargreaves have a long association with UK
COAL and in June last year, acquired the Monckton Coke & Chemical Company which
had been owned by UK COAL for over a decade. The UK's largest independent
producer and distributor of coke products, Hargreaves now employs more than 600
people.


ENDS



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