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WSL - Wescoal Holdings - Recent Developments at Wescoal and Transfer of Listing

Release Date: 24/03/2010 08:30:01      Code(s): WSL
WSL - Wescoal Holdings - Recent Developments at Wescoal and Transfer of Listing 
                        to the Main Board of the JSE Limited                    
WESCOAL HOLDINGS LIMITED                                                        
(Incorporated in the Republic of South Africa)                                  
(Registration number 2005/006913/06)                                            
JSE Share code: WSL & ISIN: ZAE000069639                                        
("Wescoal" or "the Company")                                                    
JSE LIMITED ("JSE")                                                             
1.   Khanyisa Colliery ("Khanyisa")                                             
    The incorporation of Khanyisa into the group with effect from 1 October     
2009 went according to plan and Wescoal has employed the necessary skills   
    to maximise the profitability of the mining operation. The first opencast   
    pit, East Pit, commenced operation late December 2009 and by end of March   
    2010 a total of 400,000 tons of run of mine ("ROM") will have been          
extracted. The second opencast pit, West Pit, has commenced operations      
    during March 2010 and 80,000 tons of ROM is expected to be extracted by the 
    end of March 2010. These operations together will, based on current         
    production achieved, exceed our stated objective of 1,2 million tons per    
    Wescoal is currently busy with an active drilling and exploration program   
    on Khanyisa and nearby reserves to ensure that production can be maintained 
    at the target of 1,2 million tons per annum. In addition the group is       
exploring a number of additional opportunities that have arisen out of the  
    pending expiry of rights issued in 2004 and 2005.                           
    In a joint venture with a BEE company, Wescoal secured a three year         
    contract to provide Eskom with coal product. This venture is on track to    
deliver the initial order of 100,000 tons to Eskom by the end of March      
2.   Coal market                                                                
    International coal markets have strengthened with the API#4 prices holding  
steady at around $80 per ton. This strengthening has been driven by the     
    depletion of stock piles due to the severe northern hemisphere winter and   
    the general recovery of world markets. This has however done little to      
    change the outlook for the trading division as the ongoing logistical       
problems associated with the export of coal continue. Surplus coal stocks   
    are still evident and inland coal pricing has remained static.              
3.   Transfer from the Altx to the Main Board of the JSE                        
    Following the Group`s successful expansion into mining the board of         
directors has decided to apply to the JSE for the transfer of Wescoal`s     
    listing to the main board of the JSE. The move to the main board will       
    position Wescoal alongside comparable coal mining companies.                
    Details of the transfer will be announced once JSE approval has been        
24 March 2010                                                                   
Designated Advisor                                                              
Exchange Sponsors                                                               
Date: 24/03/2010 08:30:01 Supplied by www.sharenet.co.za                     
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