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WSL - Wescoal - Repurchase Of Securities

Release Date: 09/12/2008 08:56:01      Code(s): WSL
WSL - Wescoal - Repurchase Of Securities                                        
WESCOAL HOLDINGS LIMITED                                                        
(Incorporated in the Republic of South Africa)                                  
(Registration number 2005/006913/06)                                            
(JSE code: WSL    ISIN: ZAE000069639)                                           
("Wescoal" or "the company")                                                    
REPURCHASE OF SECURITIES                                                        
1.   INTRODUCTION                                                               
Shareholders are advised that a wholly owned subsidiary of Wescoal has          
repurchased 3% of its own shares on the open market of the JSE Limited ("JSE"), 
in accordance with the general authority granted by its shareholders at its     
annual general meeting held on 29 October 2008 ("the repurchase").              
2.   IMPLEMENTATION                                                             
A total of 4 377 940 Wescoal ordinary shares, equivalent to 3% of the issued    
share capital of Wescoal, has been purchased by Wescoal on 5 December 2008.     
Details of shares repurchased since the commencement of the repurchase are as   
Number of ordinary shares repurchased        4 377 940                          
Cost of ordinary shares repurchased*         R3 130 060                         
Highest price paid per ordinary share*       R0.75                              
Lowest price paid per ordinary share*        R0.65                              
Average price paid per ordinary share*       R0.71                              
* - excluding costs                                                             
3.   EXTENT OF AUTHORITY OUTSTANDING                                            
The extent of the authority outstanding is 24 808 332 ordinary shares,          
equivalent to 17% of the total issued ordinary share capital of Wescoal. This   
authority is valid until the next annual general meeting scheduled for 30       
October 2009.                                                                   
4.   SOURCE OF FUNDS                                                            
The repurchases have been funded from available cash resources.                 
5.   DIRECTORS` STATEMENT                                                       
The Directors have considered the effect of the repurchases and are of the      
opinion that:                                                                   
5.1  the company will be able in the ordinary course of business to pay their   
    debts for the period of 12 months after the date of this announcement;      
5.2  the assets of the company will exceed liabilities for a period of 12 months
    after the date of this announcement, measured in accordance with the        
    accounting policies used in the company`s financial statements for the      
    financial year ended 31 March 2008;                                         
5.3  the share capital and reserves of the company will be adequate for ordinary
    business purposes for the period of 12 months from the date of this         
    announcement; and                                                           
5.4  the working capital of the company will be adequate for ordinary business  
purposes for the period of 12 months from the date of this announcement.    
The directors confirm that the repurchase of securities was effected through the
order book operated by the JSE trading system and without any prior             
understanding or arrangement between the company and the respective             
6.   FINANCIAL EFFECTS OF THE REPURCHASE                                        
The directors of Wescoal are responsible for the preparation of the unaudited   
pro forma financial information, which has been included for the purposes of    
illustrating the effect of the repurchases on Wescoal`s earnings, headline      
earnings, net asset value and net tangible asset value per share on the relevant
reporting date. Due to their nature, the unaudited pro-forma financial effects  
may not be a fair reflection of Wescoal`s financial position after the          
implementation of the repurchases or of Wescoal`s future earnings.              
                             Before       After      Change                     
                             (cents) (1)  (cents)(3  (%)                        
                             (2)          )                                     
Earnings per share (cents)   10.40        10.80      3.60%                      
Headline earnings per        10.50        10.80      2.72%                      
share (cents)                                                                   
Fully diluted earnings per   10.30        10.70      3.56%                      
share (cents)                                                                   
Fully diluted headline       10.40        10.70      2.68%                      
earnings per share (cents)                                                      
Net asset value per share    106.61       109.90     3.09%                      
Tangible net asset value     66.49        68.54      3.09%                      
per share (cents)                                                               
Weighted average number of   126 068      121 690                               
Fully diluted weighted       127 466      123 088                               
average shares in issue                                                         
Total number of shares       145 931      141 553                               
Notes and Assumptions:                                                          
(1)  The unaudited pro forma financial effects on the results were prepared on  
    the basis that the repurchase of 3% of the company`s shares was completed   
    on 1 April 2008 for income statement purposes and 30 September 2008 for     
balance sheet purposes.                                                     
(2)  The "Before" column has been extracted without adjustment, from the        
    reviewed interim results of Wescoal for the six months ended 30 September   
(3)  The "After" earnings and headline earnings per share have been calculated  
    on the assumption that the repurchases were financed by excess cash on hand 
    and interest was calculated at the prevailing interest rates. Tax was       
    calculated at a rate of 28%.                                                
7.   REPURCHASED SECURITIES                                                     
The repurchased shares are held by a wholly owned subsidiary of Wescoal as      
treasury shares, and therefore do not carry any voting rights.                  
9 December 2008                                                                 
Designated Adviser                                                              
Exchange Sponsors                                                               
Date: 09/12/2008 08:56:01 Supplied by www.sharenet.co.za                     
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