UK COAL today announced the appointment of Gareth Williams to the position of Mining Director on the Board of the Company. It is expected that Gareth will take up office and his seat on the Board next month.

Aged 43, Gareth has over 20 years experience in coal mining in a wide range of international roles with Anglo Coal, part of Anglo American plc. Having been General Manager of some of Anglo’s largest coal mines, he is currently Head of Operational Performance for Anglo Coal Canada and South America. Born in Warrington, Cheshire, Gareth was raised and educated in New Zealand,

gaining an honours degree in Mining Engineering at the University of Otago/Auckland in 1988.

Married with four children, Gareth is based in the UK.

Chairman David Jones said: “We are delighted to welcome Gareth. He has extensive coal mining

experience and knowledge and an impressive track record in mine management, driving productivity with a strong safety culture. All of this equips him ideally to his new role with UK COAL and made him our clear choice in what was a strong list of candidates in our selection process.”

Bill Tinsley’s role as Production Director remains the same, although he will in the future, report to Gareth.  There will be no other immediate changes to the Group Executive Committee or other roles within the business.

Today’s statement continued:

Full Year Production:  For the full year, 2009, UK COAL expects to report Deep Mines production of around 5.7 million tonnes, in line with the lower end of the Company’s production up-date of 17 November, 2009, and Surface Mines production of 1.4 million tonnes.

Face Change Up-date:  At Daw Mill, powered roof support installation will be commencing shortly on the next face in preparation for production. It is expected this equipment installation will resolve the impact of current difficult geological conditions, although these conditions mean production on this new face is now expected to commence around the end of February, rather than in January.

Mitigating action is being taken, including operating cost reductions and the extraction of additional tonnage off the existing production face in the first several weeks of the New Year, to reduce the

impact of the Daw Mill face gap on working capital.

At Kellingley, the new Beeston Seam is expected to be ready to take over directly from the current production face from around late February, with the specific date depending on completion of the extraction of the final tonnes on the current face.

At Thoresby, the Deep Soft project remains on schedule for commencement of production in March in this new seam, following record-breaking development drivage in 2009.

UK COAL will make its pre-close announcement towards the end of January, 2010.