News Archive

15 September 2004

Secures 7.5million contract with Drax Power Ltd

Aardvark TMC Ltd, a wholly owned subsidiary of ATH Resources plc, one of the UK’s largest coal producers, has entered into a new contract with Drax Power Ltd, the owner of the UK's largest coal fired power station, to supply 250,000 tonnes of coal from its Skares Road site in Ayrshire.

The contract value is worth approximately £7.5 million and will run from September 2005 to December 2006. It will facilitate the operation of an additional coaling area at the Skares Road site, thereby extending the life of the mine by a further sixteen months to the end of 2006.

ATH Resources has supplied the Drax Power station with over 2.5Mt of coal without interruption since 1999. At current output levels Drax supplies approximately 8% of the UK’s electricity needs and indigenous coal plays an important role in the security of the nation’s electricity supply.

Commenting on the contract, Tom Allchurch, Chief Executive of ATH Resources said: “We are delighted to be awarded this important contract which enables us to maximise the potential at the Skares Road site and continue our successful, long term relationship with Drax. This agreement also highlights the ongoing important role that coal plays and will continue to play as a source for UK electricity.”

For further information:
ATH Resources
Tom Allchurch, Chief Executive	Tel: +44 (0) 1302 760 462
tom.allchurch@ath.co.uk

Media enquiries:
Abchurch
Justin Heath	Tel: +44 (0) 113 390 6389
Justin.heath@abchurch-group.com	www.abchurch-group.com
Henry Harrison-Topham	Tel: +44 (0) 20 7398 7702
henry.ht@abchurch-group.com

Notes to Editors:

ATH Resources is an AIM-listed operator of opencast coal mines in the UK with its current two operational mines, Skares Road and Garleffan, located near New Cumnock, East Ayrshire in Scotland. The Company is currently the third largest producer of coal in the UK producing approximately 1.6 million tonnes per annum. Coal was used to generate 34.7 per cent of the UK’s electricity in 2003 and the Company holds coal supply contracts with four of the UK’s main electricity generating companies.

The management team has been in place since 1998. It acquired the rights to operate (and subsequently acquire) the Skares Road mine with support from The Alchemy Plan and Bank of Scotland. Following ATH Resource’s incorporation in October 2003, and backed by a follow on investment from The Alchemy Plan, the Company acquired the Garleffan mine in November 2003.

In addition to the Skares Road and Garleffan mines, the Company also has a number of other coal mining projects in Scotland and two through its French subsidiary, SRMMC including a series of six existing coal concessions in south-central France, covering an area of 4,500 hectares with an estimated resource of approximately 4.5 million tonnes of recoverable coal. In addition, it also has 287 hectares of land with a coal resource of approximately 3.2 million tonnes in Central France.

ATH Resources listed on the AIM market of the London Stock Exchange in June 2004 under the symbol ATH.L

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