Investment Aid response

UK Coal PLC
28 November 2003



                            Investment Aid Response

The Government today announced awards to the coal industry of £52m under the
Coal Investment Aid scheme.

UK COAL has been offered £36m covering the Company's eight deep mines in the
Midlands, Yorkshire, and the North East. The Investment Scheme was substantially
over-subscribed, with applications for £132 million against the £60 million
available. UK COAL had applied for £79 million under the scheme.

UK COAL Chief Executive, Gordon McPhie, said, 'I very much welcome the support
that the Government has given the coal industry. The total amount of the award
falls short of the project support we applied for, so we still need to assess
the individual mine schemes to ensure their economic viability. However, I
envisage a substantial investment from UK COAL over the next two years linked to
this government support.'


For further information, please contact:

UK COAL PLC
Gordon McPhie, Chief Executive                       01302 751 751

Financial
Gavin Anderson & Company
Liz Morley                                           020 7554 1400
Ken Cronin

Operational
Stuart Oliver                                        01525 381 759






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