Sale of Agricultural Land

UK COAL PLC ("UK Coal" or the "Group")

Sale of Agricultural Land

UK Coal announces that it has exchanged contracts to sell approximately 1,760 acres of agricultural land to C.C. Projects (the Church Commissioners). The consideration is £12.6 million payable in cash on completion. In the event that the land is developed in the medium to longer term, further consideration may become payable. The proceeds will be used to reduce the Group's indebtedness and bank facilities.  These land holdings had a book value of £11 million at December 2010 and generated £0.1 million of net rental income in that financial year.

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Enquiries:

Analysts and investors:

David Brocksom                 Group Finance Director   Tel: 01302 755 002

Media:

Rupert Pittman                    Cardew Group               Tel: 020 7930 0777                          

Emma Crawshaw

Alexandra Stoneham