Director Shareholding

UK Coal PLC
15 March 2004

                                                                                
                                                                   15 MARCH 2004


                 NOTIFICATION OF DIRECTORS' INTERESTS IN SHARES

UK COAL wishes to notify the following changes in directors' interests arising
out of the operation of its Bonus Share Matching Plan.

1. Bonus Share Matching Plan (March 2001 Awards)

Under the Bonus Share Matching Plan, executive directors are required to
purchase ordinary shares in the Company (Shares) with part of their annual
bonus. These Shares are held for each executive director by a nominee.
Participants are entitled to receive, after tax thereon, one additional Share
free of charge for every three Shares retained for three years.

On 13 March 2001 the following Shares were purchased with 50% of the following
executive directors' bonuses for 2000 (after payment of income tax) and have
been held by Mourant & Co Trustees Limited (The Trustee of the UK Coal Employee
Share Trust) (the Trustee) as nominee for the individual director concerned for
a period of three years. These shares were transferred to the individual
directors on 13 March 2004.

DIRECTOR                    NO. OF SHARES
G A McPhie                         34,827
M Garness                          28,986
P S O'Brien                        28,986

In addition, the following Shares have been held by the Trustee to satisfy the
potential entitlements of these executive directors to matching Shares under
this plan. Subject to the sale of Shares (at £1.34 per share) to meet each
director's individual tax liability, these Shares have also now been transferred
by the Trustee to the individual director concerned.

DIRECTOR               MATCHING SHARES         SOLD FOR TAX        SHARES VESTED
                                                 LIABILITY
G A McPhie                   11,609               4,760               6,849
M Garness                     9,662               3,961               5,701
P S O'Brien                   9,662               3,961               5,701


2. Resultant Interests in Shares

As a result of the transactions referred to above, the interests of the
executive directors named above in Shares (other than Shares to which they may
become entitled, subject to satisfaction of any relevant conditions, under the
Long Term Incentive Plan or the Bonus Share Matching Plan) are as follows:

DIRECTOR                   INTERESTS IN SHARES
G A McPhie                           485,570
M Garness                            150,614
P S O'Brien                          404,004

In addition, the UK Coal Employee Share Trust holds a total of 91,712 Shares to
satisfy the cumulative potential entitlements of the executive directors named
above under the Bonus Share Matching Plan. Each of these executive directors is
deemed for Companies Act purposes to have an additional interest in all of these
further Shares held by the Trustee.

3. Director's Sale of Shares

On 15 March 2004, following the transactions described above, Melvin Garness
sold 34,687 Shares. A separate notification is being made in respect of this
transaction.

The effect of the sale is to reduce to 115,927 the figure of 150,614 given above
for Mr Garness' interests in Shares.





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