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Wescoal Holdings Limited - Trading Update

Release Date: 19/06/2006 14:52:01      Code(s): WSL
Wescoal Holdings Limited - Trading Update                                       
Wescoal Holdings Limited                                                        
(Incorporated in the Republic of South Africa)                                  
(Registration number 2005/006913/06)                                            
(JSE code: WSL & ISIN: ZAE000069639)                                            
("Wescoal" or "the Group")                                                      
TRADING UPDATE                                                                  
In terms of the Listings Requirements of the JSE Limited, companies are required
to publish a trading statement as soon as they are satisfied that a reasonable  
degree of certainty exists that the financial results for the period to be      
reported on will differ by at least 20% or more from a profit forecast          
previously provided to the market.                                              
Shareholders are referred to the forecast financial information for the year    
ended 31 March 2006, published in the prospectus to shareholders dated 7 July   
2005, wherein it was advised that earnings per share ("EPS") and headline       
earnings per share ("HEPS") would be 7.8 cents.                                 
Shareholders are advised that Wescoal is currently finalising its results for   
the year ended 31 March 2006 and that it is expected that EPS and HEPS would be 
40% - 45% lower than those of the forecast financial information. The main      
reasons for the lower earnings were difficulties experienced at Wesmine during  
the second half of the year where, during this period, raw material supply to   
Wesmine was interrupted for 3 months. This situation was addressed and rectified
during March 2006. In addition difficult trading conditions were experienced due
to the warm weather conditions during the 2005 winter and a low off take of coal
by seasonal producers.                                                          
Shareholders are however advised that since the beginning of March 2006, the    
market conditions have improved resulting in Wescoal achieving record sales and 
profits for the first two months of the financial year ending 31 March 2007.    
Should the favorable market conditions continue as expected, management is      
confident of achieving the forecast EPS and HEPS of 8,6 cents for the year      
ending 31 March 2008.                                                           
The above information has not been reviewed or reported on by the company"s     
auditors.  The company"s results for the year ended 31 March 2006, are expected 
to be published on SENS before the end of June 2006.                            
19 June 2006                                                                    
Designated Adviser                                                              
Exchange Sponsors                                                               
Warning: The listing of ordinary shares in the company is on ALTx.  Investors   
are advised of the risks of investing in a company listed on ALTx. Investors are
advised that the JSE does not guarantee the viability or the success of a       
company listed on ALTx.  In terms of the Listings Requirements, the company is  
obliged to appoint and retain a Designated Adviser, which is required to, inter 
alia, attend all board meetings held by the company to ensure that all the      
Listings Requirements and applicable regulations are complied with, approve the 
Financial Director of the company and guide the company in a competent,         
professional and impartial manner.  If the company fails to retain a Designated 
Adviser, it must make arrangements to appoint a new Designated Adviser within 10
business days, failing which the company faces suspension of trading of its     
securities.  If a Designated Adviser is not appointed within 30 days of its     
suspension, the company faces the termination of its listing without the        
prospect of an appropriate offer to minority shareholders.                      
Date: 19/06/2006 02:52:05 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             

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