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Wescoal Holdings Limited - The Acquisition Of A Prospecting Right For Khanyisa Phase 2

Release Date: 19/11/2014 12:48:00      Code(s): WSL     
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?)


     THE ACQUISITION OF A PROSPECTING RIGHT FOR KHANYISA PHASE 2


1. INTRODUCTION

Wescoal Mining (Pty) Ltd (?Wescoal Mining? or ?the Purchaser?), a wholly owned subsidiary of
Wescoal, is pleased to announce that it has concluded an agreement with Catwalk Investments (Pty)
Ltd (?Catwalk?) on 18 November 2014 for the acquisition of the Sarie Marais Prospecting Right and the
consent to undertake box cut mining, as described below, from Catwalk (?the acquisition?), subject to
certain terms and conditions.

2. RATIONALE FOR THE ACQUISITION

The acquisition is in line with Wescoal?s stated goals of extending the life of its current operations to
2016 and beyond. The Sarie Marais Prospecting Right is contiguous to Wescoal?s current Khanyisa
operations and the existing box cuts allows seamless transition into the acquired area exposing higher
grade and lower cost coal than current production.

3. THE SARIE MARAIS PROSPECTING RIGHT

The Sarie Marais Prospecting Area comprises the Remaining Extent of Portion 19, Portions 9,
18,33,34,40,41,42,66, and Portions of Portion 96, 97, 99 and the Remaining Extent of the farm
Heuvelfontein 215 IR, Mpumalanga Region, Mpumalanga Province, South Africa.

The Sarie Marais Prospecting Right means the notarial prospecting right in respect of coal in, on and
under the Sarie Marais Prospecting Area, held by Catwalk with reference number
MP30/5/1/1/2/1500PR dated 12 September 2007, granted by the minister of Mineral Resources and
registered in the Mining Titles Office on 2 October 2007 under MPT No. 50/2012.

4. TERMS AND CONDITIONS OF THE ACQUISITION

4.1 Wescoal Mining has purchased the Sarie Marais Prospecting Right from the Seller which has
    consented to Wescoal Mining undertaking box cut mining on the prospecting right and to use the
    existing box cuts.

4.2 The purchase price for the Sarie Marais Prospecting Right is R4 600 000 excluding VAT.

4.3 The consideration for the box cut consent is R10 000 000 excluding VAT.

4.4 The Seller has provided the Purchaser with warranties that are customary in transactions of this
    nature.

4.5 The acquisition is subject to the fulfilment of inter alia the condition precedent that the Minister
    consenting to the transfer of the Sarie Marais Prospecting Right by the Seller to the Purchaser in
    terms of Section 11 of the Mineral and Petroleum Resources Development Act, No 28 of 2002.



5.    CATEGORISATION OF THE ACQUISITION
This announcement is a voluntary announcement and does not fall within the categories defined by the
JSE Listings Requirements.



Sponsor to Wescoal                  Legal Adviser to Wescoal           Legal Advisors to Catwalk

Exchange Sponsors                   KWA Attorneys                      Hogan Lovells (South Africa)




19 November 2014
Johannesburg

Date: 19/11/2014 12:48:00 Supplied by www.sharenet.co.za                     
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