The Business at a Glance

Mining

DEEP MINING

The Group operates 4 deep mines, located in Central and Northern England. The Group has reserves and resources of over 100 million tonnes at these mines and further mineral potential in addition.

SURFACE MINING

The Group has 5 active surface mines and planning committee approvals or consents to mine a further 3 sites. We have applied for planning consents for a further 2 mines and expect to make applications for a further 3 sites during 2009. Total surface mining reserves and resources, subject to planning, are estimated at approximately 55 million tonnes.

Harworth Estates

UK COAL owns approximately 45,000 acres (18,200 hectares) of predominantly agricultural land. Within this, around 3,800 net acres on 77 sites have been identified as offering prime prospects for development into a mix of residential, business park, distribution and community developments over the medium term.

The Group’s property interests, excluding the deep mine sites, at current open market value were valued at December 2008 at £422 million. We estimate, however, that, with the benefit of currently envisaged planning consents, at current market values, our land portfolio would have a worth of some £668 million by 2012, and some £886 million by 2014, in each case with the potential for further development phase profits.