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EXX - Exxaro Resources - News Release - Medupi Coal Supply and off-take

Release Date: 08/12/2009 08:09:01      Code(s): EXX
EXX - Exxaro Resources - News Release - Medupi Coal Supply and off-take         
agreement update                                                                
EXXARO RESOURCES LIMITED                                                        
(Incorporated in the Republic of South Africa)                                  
(Registration Number:  2000/011076/06)                                          
JSE share code:  EXX                                                            
ISIN code:  ZAE000084992                                                        
ADR code:  EXXAY                                                                
Exxaro Coal (Pty) Limited, a wholly owned subsidiary of diversified South       
African-based resources group Exxaro, and Eskom Holdings Limited ("Eskom"),     
signed the Medupi Coal Supply and Off-take Agreement ("CSA") on 19 September    
2008.  In terms of the CSA, Exxaro will supply an average of 14.6 million tonnes
per annum of power station grade coal to Eskom`s new Medupi base-load power     
station, under construction near Lephalale, Limpopo province, from a brownfields
expansion project at Exxaro`s Grootegeluk mine ("Grootegeluk Medupi Expansion   
Exxaro`s capital expenditure for the Grootegeluk Medupi Expansion Project is    
estimated at R9 billion and delivery of first coal was planned to commence in   
the fourth quarter of 2011 with a ramp-up to full production by 2014.           
Exxaro has received notice from Eskom that it is seeking to review certain      
commercial terms contained in the CSA, including the coal price escalation      
mechanism and the coal delivery ramp-up. Indications are that the date for first
coal delivery to the power station, in terms of the CSA, has been confirmed to  
be during the first half of 2012, aligned to the commercial start-up of the     
power station. Exxaro is in separate discussion with Eskom with regard to the   
delivery of early coal from July 2011, to be used by the power station for pre- 
commissioning tests and the creation of stock-piles. Pending the outcome of the 
review process, Exxaro will temporarily suspend its funding programme as well as
the placement of additional contracts associated with the Grootegeluk Medupi    
Expansion Project.                                                              
Addenda to the CSA have been signed by the parties to extend the fulfilment of  
various suspensive conditions. Currently all suspensive conditions are to be    
fulfilled by 26 February 2010.                                                  
Editor`s Note:Exxaro is one of the largest South African-based diversified      
resources groups, with interests in the coal, mineral sands, base metals,       
industrial minerals and iron ore commodities.                                   
Wim de Klerk                                                                    
Financial Director                                                              
Tel: + 27 (0) 12 307 4848                                                       
Mobile: +27 (0) 82 652 5145                                                     
Email: wim.deklerk@exxaro.com                                                   
8 December 2009                                                                 
Deutsche Securities (SA) (Proprietary) Limited                                  
Date: 08/12/2009 08:09:01 Supplied by www.sharenet.co.za                     
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