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Exx - Exxaro - Medupi Coal Supply And Off-take Agreement Update

Release Date: 31/03/2010 10:56:01      Code(s): EXX
EXX - Exxaro - 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: ZAE000084992                                                              
ADR code: EXXAY                                                                 
("Exxaro")                                                                      
NEWS RELEASE - MEDUPI COAL SUPPLY AND OFF-TAKE AGREEMENT UPDATE                 
Exxaro Coal (Pty) Limited, a wholly owned subsidiary of diversified South       
African-based resources group Exxaro Resources Limited (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 would 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 Project). At the time, Exxaro`s capital           
expenditure for the Grootegeluk Medupi Expansion Project was 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.                              
On 8 December 2009 Exxaro advised its stakeholders that Eskom had formally      
requested Exxaro to review certain of the commercial terms of the CSA and Exxaro
further noted that this had resulted in it temporarily suspending its           
Grootegeluk Medupi Expansion Project funding programme as well as the placement 
of additional contracts associated with the Grootegeluk Medupi Expansion        
Project.                                                                        
Exxaro is pleased to announce that the review of the Medupi CSA has been        
finalised and that Exxaro and Eskom signed a definitive agreement on 26 March   
2010. In terms of the revised agreement, the delivery of first coal is planned  
for the second quarter of 2012 with a ramp-up to full production by 2015. This  
ramp-up is now in line with the commissioning and commercial operation date of  
the first unit of the power station.                                            
Exxaro will now resume its funding programme as well as the placement of        
additional contracts for the Grootegeluk Medupi Expansion Project.  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 for a period of 40 years.         
The agreement is subject to the fulfilment of certain suspensive conditions,    
including the respective companies` board approvals and Exxaro securing its     
funding.                                                                        
Ends                                                                            
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.                                                           
www.exxaro.com                                                                  
Enquiries:                                                                      
Ernst Venter                                                                    
Executive General Manager: Business Growth                                      
Tel: + 27 (0) 12 307 4322                                                       
Mobile: +27 (0) 83 609 1313                                                     
Email: ernst.venter@exxaro.com                                                  
Pretoria                                                                        
31 March 2010                                                                   
Sponsor                                                                         
Deutsche Securities (SA) (Proprietary) Limited                                  
Date: 31/03/2010 10:56:01 Supplied by www.sharenet.co.za                     
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