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Sah - Sacmh - Update On The Proposed Restructuring Of The Company

Release Date: 03/06/2009 14:00:02      Code(s): SAH
SAH - SACMH - Update on the proposed restructuring of the company               
South African Coal Mining Holdings Limited                                      
(Incorporated in the Republic of South Africa)                                  
Registration number 1994/009012/06                                              
Share code: SAH                                                                 
ISIN: ZAE000102034                                                              
("SACMH" or "the company")                                                      
Update on the proposed restructuring of the company                             
Further to the announcements dated 30 March 2009 and 11 May 2009, the board     
wishes to give an update on the proposed restructuring of the company.  Mining  
operations were placed on "care and maintenance" from 1 April 2009 and the      
company is in the process of an operational, financial and equity restructure.  
Operationally, expensive or ineffective sub-contractor contracts have been      
terminated and management is in the process of rebuilding an operational model  
that is more appropriate in the current market conditions.  In the interim,     
sundry income is being generated from certain of the non-mining assets of the   
group such as short-term leases on the Umlabu and Blinkpan sidings and sales of 
product from surface stocks.                                                    
Financially, a restructuring is in progress which includes, inter alia, a       
compromise offer to creditors in subsidiaries of the company ("the compromise").
The compromise was filed in the Gauteng North High Court on Tuesday, 2 June     
2009.  The compromise includes, inter alia, a proposal to convert a portion of  
the secured commercial bank debts into equity and a cash offer to remaining     
creditors.                                                                      
The company has engaged Rand Merchant Bank, a division of FirstRand Bank        
Limited, to advise on the process to facilitate the introduction of a strategic 
equity partner ("SEP") to provide new capital to fund capital expenditure which 
is expected to increase the production of the mine and improve economic         
performance.  Currently, several interested parties are involved in a due       
diligence process which is expected to culminate in the receipt of equity       
funding proposals.  The company believes that this process will be completed by 
the end of June 2009.                                                           
A subsidiary of Royal Bafokeng Holdings (Pty) Limited has made an interest-     
bearing loan available to the company to fund the care and maintenance program  
which loan will be capitalized on the introduction of the SEP.                  
Shareholders will be advised of further developments regarding the proposed     
restructuring of the company in due course.  The company`s shares will remain   
suspended on the JSE Limited until the company is in a position to release      
audited financial statements for the year ended 31 December 2008.               
Mirkwood                                                                        
3 June 2009                                                                     
Sponsor: QuestCo Sponsors                                                       
Date: 03/06/2009 14:00:02 Supplied by www.sharenet.co.za                     
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