Sale of Gloucester Coal

UK Coal PLC
02 April 2004


Friday 2 April 2004


                                  UK COAL PLC


                             Sale of Gloucester Coal


UK COAL PLC, the coal mining and property group, today announces, that it has
entered into a conditional Sale Agreement with ABN AMRO Rothschild ('AAR') that
will result in the sale of its 97% investment in Gloucester Coal Limited ('GCL')
the Company's mining activity in New South Wales, Australia.

The price for the sale of UK Coal's 75,572,049 shares in GCL is A$0.69 (28.5p)
per share, resulting in gross proceeds of A$52.1 million (£21.5 million) before
transaction costs. This consideration will be paid in cash.

The disposal of Gloucester Coal is expected to be earnings enhancing for UK
Coal.

Gordon McPhie, Chief Executive, UK Coal said:

'I am pleased with the successful sale of Gloucester Coal. The disposal of the
business will allow the Group to focus on its core UK businesses. The proceeds
will be used for general purposes and to fund investments for the future,
including investment on new coal face equipment at Daw Mill and Kellingley
collieries .'

GCL, which is listed on the Australian stock exchange, achieved sales of 1.9
million tonnes in the year to 31 December 2003 with losses attributable to the
Group of £4.2m. The book value of the tangible net assets of the business was
£10.3m as at 31 December 2003.

UK COAL PLC

Gordon McPhie                                                   01302 751 751
Chief Executive

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

Operational
Stuart Oliver                                                    01525 381 759







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