COAL OF AFRICA LIMITED - Rio Tinto Chapudi Agreements

Rio Tinto Chapudi Agreements

 Coal of Africa Limited
 (Incorporated and registered in Australia)
 Registration number ABN 008 905 388
 ISIN AU000000CZA6
 JSE/ASX/AIM share code: CZA
 ("CoAL or the "Company" or the "Group")


ANNOUNCEMENT
                                                                            8 March 2016

Rio Tinto Chapudi Agreements

Shareholders are hereby advised that Coal of Africa Limited (“CoAL”) and its subsidiary
company, MbeuYashu Proprietary Limited (“MbeuYashu”) received a notice from Rio
Tinto Minerals Development Limited (“Rio Tinto”) and Kwezi Mining Proprietary Limited
(“Kwezi”) alleging that CoAL is in breach of an obligation under the agreements pursuant
to which MbeuYashu acquired interests in Chapudi Coal Pty Ltd and Kwezi Mining
Exploration Pty Ltd, and therefore all amounts owed by CoAL and MbeuYashu are now
due for payment. These interests relate to assets within the Greater Soutpansberg
Project.

On legal advice, CoAL will dispute the validity of the notice.    If Rio Tinto and Kwezi
pursue the matter, CoAL and MbeuYashu will defend it vigorously.

The original amount owed by CoAL and MbeuYashu to Rio Tinto and Kwezi was USD75
million of which USD56 million has already been paid (which equals 75% of the original
acquisition price) and an amount of USD19m is still owing. Payments to Rio Tinto and
Kwezi are due finally by 15 June 2017. CoAL and MbeuYashu have met, and will
continue to meet all of their payment obligations to Rio Tinto and Kwezi.
Authorised by

David Brown
Chief Executive Officer



For more information contact:
David Brown                                                    Chief Executive Officer                              Coal of Africa                  +27 10 003 8000
De Wet Schutte                                                 Chief Financial Officer                              Coal of Africa                  +27 10 003 8000
Celeste Riekert                                                Investor Relations                                   Coal of Africa                  +27 10 003 8000
Tony Bevan                                                     Company Secretary                                    Endeavour Corporate Services    +61 08 9316 9100

Company advisors:
Jos Simson/Emily Fenton                                        Financial PR (United Kingdom)                        Tavistock                      +44 20 7920 3150
Matthew Armitt/Ross Allister                                   Nominated Adviser and Broker                         Peel Hunt LLP                  +44 20 7418 8900

Richard Morgan                                                 Broker                                               Mirabaud Securities LLP        +44 20 7878 3360

Charmane Russell/Olwen Auret                                   Financial PR (South Africa)                          Russell & Associates           +27 11 880 3924 or
                                                                                                                                                   +27 82 372 5816
Investec Bank Limited is the nominated JSE Sponsor

About CoAL:
CoAL is an AIM/ASX/JSE listed coal exploration, development and mining company operating in South Africa. CoAL’s key projects
include the Vele Colliery (coking and thermal coal), the Greater Soutpansberg Project /MbeuYashu, including CoAL’s Makhado Project
(coking and thermal coal).

AU: Coal of Africa Limited, Suite 8, 7 The Esplanade, Mount Pleasant, Perth WA 6153, Australia, Tel: +61 8 9316 9100, Fax: +61 8 9316 5475
ZA: South Block, Summercon Office Park, Cnr Rockery Lane and Sunset Avenue, Lonehill, 2191, Tel: +27 10 003 8000 Fax: +27 11 388 8333 Email: adminza@coalofafrica.com

Bernard R. Pryor – Chairman, David H. Brown – Chief Executive Officer, De Wet O Schutte
Non-executive directors: Peter G. Cordin, Andrew D Mifflin, Khomotso B. Mosehla ,Thabo F Mosololi, Rudolph H. Torlage

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