Statement re Cancellation

    RNS Number : 2362H
  Universal Coal PLC
  03 November 2008
   

    Universal Coal plc / Index: AIM / Epic: UCL / Sector: Natural Resources

    Universal Coal plc 
    ('Universal Coal' or 'the Company')
    Cancellation and re-Admission Update

    Universal Coal provides the following update in relation to the current suspension and cancellation of trading of its shares, the
intended re-admission to trading on AIM, and in relation to the Company's acquisition of certain South African coal assets.

    Rule 41 of the AIM Rules for Companies ('the AIM Rules') states that the London Stock Exchange will cancel the admission of AIM
securities ('Admission') following six months suspension.  Accordingly, as Universal Coal's shares have been suspended from trading since 1
May 2008, following the announcement of a transaction which constituted a reverse takeover under the AIM Rules, the Company's Admission will
be cancelled as of 7am on 3 November 2008.

    Universal Coal announced in its final results on 27 October 2008, that it is in the process of preparing an admission document and that
the Directors are working to complete all necessary documentation to enable the Company to return to trading on AIM as soon as practicable. 


    Background

    On 1 May 2008, Universal Coal announced that the Company's 70.5% owned South African subsidiary had entered into a conditional agreement
to acquire 100% of the prospecting rights owned by Injula Mining Operations Pty Ltd ('Elof Coal Project').  

    Subsequently, on 6 August 2008, the Company further announced that another 100% owned South African subsidiary had entered into an
exclusive option agreement to acquire 100% of the prospecting rights owned by Universal Pulse Trading 132 (Proprietary) Trading Limited
('Vlakplaats Coal Project').

    The acquisition of the Elof and the Vlakplaats Coal Projects constitute a reverse takeover in accordance with AIM Rules for which the
Company was required to obtain shareholder approval.  Consequently, since 1 May 2008 the Company's shares have been suspended from trading
on AIM until such time as an admission document is posted to shareholders.  The acquisition of the prospecting rights for both of these
projects is also conditional upon Ministerial consent to, and registration of, the transfer by the Department of Minerals and Energy as well
as, in the case of the Elof Coal Project, South African Reserve Bank approval.

    Admission Process

    The Company is still in advanced negotiations with a leading coal trading group with respect to financing the Vlakplaats Coal Project,
prior to the exercise of the option.  It is also in the process of preparing an admission document for the re-admission of the Company's
share capital to AIM, and obtaining Ministerial consent for the transfer of ownership of the Elof Coal Project as well as the South African
Reserve Bank approval.  

    As a result, it became clear that the Admission process would not be completed by 31 October 2008, at which time the Company's shares
would have been suspended from trading on AIM for six months.  Therefore, the current Admission of the Company's shares to trading on AIM is
being cancelled as of 7am on 3 November 2008, being the next business day following the elapsing of the 6 month suspension period.

    The Directors expect that the Company's shares will be re-admitted to trading on AIM and further announcements will be made via RNS
Reach and on the Company's website in due course.  

    *** ENDS***

    For further information visit www.universalcoal.com or contact:

 Tim Horgan       Universal Coal plc         Tel: [phone]
 Hugh Oram        Nabarro Wells & Co. Ltd    Tel: [phone]
 Daniel Briggs    Religare Hichens Harrison  Tel: [phone]
 Hugo de Salis/   St Brides Media & Finance  Tel: [phone]
 Victoria Thomas




This information is provided by RNS
The company news service from the London Stock Exchange
 
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