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WESCOAL HOLDINGS LIMITED - Wescoal voluntary strategic update 23 August 2017

Release Date: 23/08/2017 12:32:00      Code(s): WSL     
Incorporated in the Republic of South Africa
(Registration number 2005/006913/06)
Share code: WSL
ISIN: ZAE000069639
(?Wescoal? or ?the Company? or ?the Group?)

Wescoal Voluntary Strategic Update ? 23 August 2017

Wescoal is pleased to provide a positive update to shareholders on various strategic company matters
including the integration of Keaton Energy (?Keaton?), BEE ownership and other matters pertaining to the
combined enlarged organisation.

Keaton Integration
The Keaton acquisition was effective from 4th July 2017 and integration activities are progressing well.
-   Cost savings intended to be achieved through synergies and optimisation of management and systems
    are on track. A number of specific procurement related cost saving initiatives have been identified and
    are being implemented immediately. From March 2018, the former Keaton head office building and
    rental costs will also be discontinued, resulting in further savings.
-   The Group restructure and redeployment process is on track and in line with the regulatory framework.
    Key technical and mining skills have been retained successfully.
-   Operational and financial performance from the Keaton business unit have to date been in line with
-   Keaton and its associated brand will, for the immediate future, continue to be used and exist as a wholly
    owned subsidiary of Wescoal.

Production and Operational Performance
-  WSL has previously announced an annual ROM production target of 8 million tons per annum to be
   achieved in the short to medium term. Production from the combined operations is on track to achieve
   this target.
-  The year to date operational performance across the Trading and Mining business units are in line with

-  Wescoal remains intent on playing a role as a consolidator in the junior coal mining sector and will
   continue to consider value enhancing growth opportunities. Inorganic growth initiatives will be focussed
   on acquiring additional resources and strategic interests in key coal related infrastructure. The Group?s
   immediate priority centres around successfully integrating and unlocking value from the recently
   acquired Keaton business.

BEE Ownership
-  Wescoal?s minimum 51% BEE ownership is a threshold which will be protected and maintained with
   transformation at the centre of the Company?s employment and ownership principles.
-  In its latest BEE ownership report dated 25 July 2017, the Company?s verified effective economic interest
   by BEE shareholders in the enlarged shareholder base is at least 51.68%. However, there are further
   identified, but not yet verified shareholdings, which could give the Company a maximum BEE ownership
   of up to 58.09%. The full BEE Ownership Report is available on the Wescoal company website
-  Additionally, a broad-based ownership scheme involving employees is planned for implementation
   which is likely to further enhance BEE ownership.

Leadership?s Priorities
-  Wescoal leadership?s strategic priorities remain to maximise value from existing assets in a safe and
   responsible manner, to sustainably grow the business, and to deliver solid and predictable operational
   and financial performances. Planning and executing projects in a considered, risk-based manner is how
   Wescoal will continue to manage and realise value from its growth plans.

Shareholders and Diary Update
-  Wescoal?s interim results will be announced during the first week of November 2017. Various group and
   individual shareholder engagements will be scheduled closer to the time.

-  The Company?s Annual General Meeting is scheduled for 14th November 2017 at 10:00am wherein the
   resolutions put to shareholders as per the 2017 Integrated Annual Report (?IAR?) will be addressed and
   voted on. It is anticipated that the IAR will be sent to shareholders by the 30th of September 2017.

-  Company management continues to engage with stakeholders in a constructive and positive manner. It
   is currently assessing investor site visits to newly acquired and pre-existing operations in the Delmas and
   Middleburg areas in September and/or November. Interested investors should contact the Company?s
   IR advisors at IR@Singular.co.za

Nedbank Corporate and Investment Banking

IR Advisor
Singular Systems IR

Date: 23/08/2017 12:32:00 Supplied by www.sharenet.co.za                     
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