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WSL - Wescoal Holdings Limited - Financial Effects of the Acquisition of

Release Date: 25/06/2009 10:57:02      Code(s): WSL
WSL - Wescoal Holdings Limited - Financial Effects of the Acquisition of        
Khanyisa Mine and Withdrawal of Cautionary Announcement                         
Wescoal Holdings Limited                                                        
(Incorporated in the Republic of South Africa)                                  
(Registration number 2005/006913/06)                                            
(JSE code: WSL & ISIN: ZAE000069639)                                            
("Wescoal" or "the company")                                                    
CAUTIONARY ANNOUNCEMENT                                                         
1.   INTRODUCTION                                                               
Shareholders are referred to the announcement dated 24 June 2009 where it was   
announced that Wescoal Mining (Pty) Limited, a wholly owned subsidiary of       
Wescoal has purchased from Nucoal Mining (Pty) Limited the business of Nucoal of
conducting a mining operation at Portions 96, 97 and 99 Heuwelfontein 215 IR    
under the name and style of Khanyisa Mine and certain specified assets and      
liabilities ("the business") ("the proposed acquisition").                      
Below are the financial effects of the proposed acquisition.                    
2.   PRO FORMA FINANCIAL EFFECTS                                                
The unaudited pro forma financial effects are provided for illustrative purposes
only to provide information about how the acquisition of the business may have  
impacted on Wescoal`s results and financial position.  Due to the nature of the 
unaudited pro forma financial information, it may not give a fair presentation  
of the group`s results and financial position after the acquisition of the      
The unaudited pro forma financial effects are based on the reviewed financial   
information for the six months ended 30 September 2008 as announced on SENS on 5
December 2008.                                                                  
The unaudited pro forma financial effects have been included in terms of the JSE
Listings Requirements. The directors of Wescoal are responsible for the         
preparation of the unaudited pro forma financial effects.                       
                    Reviewed        Unaudited pro   % Change                    
results for     forma after                                 
                    the six months  the                                         
                    ended 30        acquisition 30                              
                    September 2008  September 2008                              
Earnings per share  10.4            11.2            7.69%                       
Headline earnings   10.5            11.5            9.52%                       
per share (cents)                                                               
Fully diluted       10.3            11.3            9.71%                       
earnings per share                                                              
Fully diluted       10.4            11.4            9.62%                       
headline earnings                                                               
per share (cents)                                                               
Net asset value     106.61          106.0           (0.56%)                     
per share (cents)                                                               
Net tangible asset  66.49           65.9            (0.75%)                     
value per share                                                                 
Shares in issue at  145 931         145 931                                     
year end (`000)                                                                 
Weighted average    126 068         126 068                                     
number of shares                                                                
in issue (`000)                                                                 
Fully diluted       127 466         127 466                                     
weighted average                                                                
shares in issue                                                                 
    1.   The "before the acquisition" column has been extracted without         
         adjustment from the reviewed results of Wescoal for the six months     
ended 30 September 2008.                                               
    2.   The "after acquisition" earnings and headline earnings per share have  
         been based on the management accounts of the business for the six      
         months ended 31 December 2008. Wescoal`s management are satisfied with 
the quality of these management accounts.                              
    3.   The earnings and headline earnings per share were calculated as if the 
         acquisition took place on 1 April 2008.                                
    4.   The net asset value and net tangible asset value per share were        
calculated as if the acquisition took place on 30 September 2008.      
    5.   No goodwill will arise on the acquisition.                             
    6.   Interest foregone has been calculated at an interest rate of 9% on the 
         initial purchase price of R25 million and at prime interest rate of    
11% on the balance of the purchase price up to a maximum of R8.8       
3.   WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT                                      
Caution is no longer required to be exercised by shareholders when dealing in   
their securities.                                                               
4.   FURTHER ANNOUNCEMENT                                                       
Shareholders will be notified once the proposed acquisition has become          
Designated Adviser:                                                             
Exchange Sponsors                                                               
25 June 2009                                                                    
Date: 25/06/2009 10:57:02 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
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JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          

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