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Sah - Sacmh - Updated Engineers` Report

Release Date: 21/02/2008 15:00:02      Code(s): SAH
SAH - SACMH - Updated Engineers` Report                                         
South African Coal Mining Holdings Limited                                      
Registration number 1994/009012/06                                              
Share code: SAH                                                                 
ISIN code: ZAE000102034                                                         
("SACMH" or "the company")                                                      
Updated Engineers` Report                                                       
SACMH is pleased to announce the key findings of the Updated Engineers` Report  
on the Umlabu Colliery, compiled by independent consultants SRK Consulting South
Africa (Pty) Ltd and dated 31 January 2008 ("the Updated Engineers` Report").   
The Updated Engineers` Report provides an update to the Competent Persons`      
Report on Umlabu Colliery distributed on 8 June 2007 ("the CPR") and is based on
new geological and operational information.                                     
The table below contrasts the key findings of the Updated Engineers` Report with
those of the CPR:                                                               
CPR        Updated     % Change                  
                               (June      Engineers`                            
                               2007)      Report                                
                                          (Jan 2008)                            
Total resources - measured      26.3       56.7        115%                     
and indicated (million                                                          
tonnes)(1)                                                                      
Total resources - inferred      27.0       33.5        24%                      
(million tonnes)(1)                                                             
Run of mine reserves (million   12.6       25.7        104%                     
tonnes)(1)                                                                      
Saleable coal reserves          10.0       18.8        88%                      
(million tonnes)(1)                                                             
Peak run of mine production     1.2        1.7         45%                      
rate (million tonnes per                                                        
annum)                                                                          
Peak saleable production rate   1.1        1.3         20%                      
(million tonnes per annum)                                                      
Net present value of Umlabu     272        992         265%                     
Colliery (ZAR millions)(2)                                                      
1.   The Updated Engineers` Report indicates a substantial increase in the  
         confidence in resource and reserve estimates, with the addition of     
         32.8 million tonnes of inferred coal resource from the Sterkfontein    
         property.                                                              
2.   The net present values reflected above do not take into account        
         balance sheet items such as debt, contingent liabilities, cash,        
         working capital etc. and were calculated at a nominal discount rate of 
         15% in the CPR and a real discount rate of 10% in the Updated          
Engineers Report.                                                      
The production profile from the Umlabu Colliery as well as the key performance  
parameters from 2008 to 2022 and all assumptions are set out in the Updated     
Engineers` Report. SACMH will develop a definitive life of mine plan during the 
course of 2008.                                                                 
The findings of the Updated Engineers` Report will be presented in more detail  
at an investors` presentation tomorrow (22 February 2008). A copy of the Updated
Engineers` Report can be found on SACMH`s website (www.sacmh.co.za).            
Karl Gribnitz, Chief Executive, said,                                           
"The findings of this independent report are very encouraging, with an 88%      
increase in our saleable reserves.  Our objective is to be the premium BBBEE    
coal mining platform in South Africa.  We have established that platform by the 
introduction of Royal Bafokeng as our controlling BEE partner and are focused   
now on operational expansion of the mine as well as upgrading the logistics."   
Mirkwood                                                                        
21 February 2008                                                                
Sponsor                                                                         
QuestCo                                                                         
Enquiries:                                                                      
Melanie Steyn, Group Executive                                                  
SACMH Limited       011 748 2831                                                
Nicholas Williams                                                               
College Hill        011 447 3030                                                
Date: 21/02/2008 15:00:02 Supplied by www.sharenet.co.za                     
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