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Wsl - Wescoal Holdings Limited - Trading Update

Release Date: 24/06/2011 17:15:01      Code(s): WSL
WSL - Wescoal Holdings Limited - Trading Update                                 
WESCOAL HOLDINGS LIMITED                                                        
(Incorporated in the Republic of South Africa)                                  
(Registration number 2005/006913/06)                                            
(JSE code: WSL  ISIN: ZAE000069639)                                             
("Wescoal" or "the company")                                                    
TRADING UPDATE                                                                  
In terms of the Listings Requirements of the JSE Limited ("JSE"), section       
3.4(b), companies are required to publish a trading statement as soon as they   
are satisfied that a reasonable degree of certainty exists that the financial   
results for the period will differ by at least 20% from the financial results   
for the previous corresponding period.                                          
Shareholders are advised that the company expects earnings per share for the    
year ended 31 March 2011 to decrease from 4.57 cents to a loss per share of     
between 26.2 cents and 32.0 cents as compared to the comparative period.        
Headline earnings per share for the year ended 31 March 2011 is expected to     
decrease from 4.28 cents to a loss per share of between 23.3 cents and 28.5     
cents as compared to the comparative period.                                    
The decrease in earnings is primarily due to:                                   
-    Write off of all mining costs incurred at the Sutha operation at Khanyisa  
    Colliery;                                                                   
-    Reduced production and increased costs due to flooding in the quarter      
    ended 31 March 2011;                                                        
-    Reduced production resulting in losses at the Blesboklaagte washing        
    plant;                                                                      
-    Accelerated write off of mining in progress and mine establishment costs;  
    and                                                                         
-    Impairment of goodwill in Chandler Coal (Pty) Limited.                     
Khanyisa Colliery returned to full production during April 2011 and a change    
in mining methods will prevent future flooding at the operation.                
To date, no action has been launched by Sutha Civils (Pty) Limited ("Sutha")    
to substantiate and demand the money they very publicly claimed was due to      
them. Wescoal did however approach the court in March 2011 to interdict Sutha   
from continuing to make unsubstantiated and derogatory statements to the        
media. An interim order was granted and should be made final during July 2011.  
Blesboklaagte washing operation stopped production at the end of March 2011     
and the sale of the plant is currently being finalized.                         
The financial information on which this trading statement is based has not      
been reviewed or reported on by the company`s auditors.                         
24 June 2011                                                                    
Johannesburg                                                                    
Sponsor                                                                         
Exchange Sponsors                                                               
Date: 24/06/2011 17:15:01 Supplied by www.sharenet.co.za                     
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