THE WATERBERG COAL COMPANY LTD - Business Update and Further Cautionary Announcement

Business Update and Further Cautionary Announcement

The Waterberg Coal Company Limited
(Incorporated in Australia)
(Registration number ABN 64 065 480 453)
ASX: WCC | JSE: WCC | ISIN: AU000000WCC9
(“WCC” or “the Company”)


BUSINESS UPDATE AND FURTHER CAUTIONARY ANNOUNCEMENT

Shareholders are referred to the announcement dated 16 September 2014 (“the 16 September
Announcement”) and are advised of the following:

1. The Eskom Project
   As set out in the 16 September Announcement, discussions with Eskom are ongoing to
   resolve the outstanding requirements in order to advance the Coal Supply Agreement
   (“CSA”) discussions. These outstanding requirements include coal specification finalisation,
   final pricing, delivery dates and the provision to Eskom of a satisfactory due diligence report
   on the DFS. The discussions with Eskom are regular and ongoing and WCC anticipates
   resolving all outstanding requirements early in 2015.

2. The Convertible Secured Facility (“Facility”)
   On 9 April 2013, WCC drew down on the Facility, with a face value of A$35 million, from a
   syndicate of Lenders with The Standard Bank of South Africa Limited (“Standard Bank”) as
   facility agent (the “Lenders”).

   As set out in the 16 September Announcement, WCC had entered into discussions with the
   Lenders with respect to the restructuring of the Facility; including an extension to the
   Facility’s maturity date. Shareholders are advised that the Facility matured on 9 October
   2014 and in terms of the agreement between the Lenders and WCC, has been extended on
   an on-demand basis. A portion of capital owing under the Facility, amounting to A$4.3m, was
   repaid to the Lenders by WCC. The revised balance of the Facility as at 17 October 2014,
   including accumulated interest, is A$39.3m.

3. The Export Project
   The definitive feasibility study for the stand alone export project has been commissioned with
   Snowden Group and it is expected to be completed by the middle of December 2014.
   Discussions in relation to separate funding options for the stand alone export project which
   will include the retirement of the Facility are taking place and a further announcement in this
   regard will be made contemporaneously with the completion of the definitive feasibility study.

   The company is in negotiations with the relevant authorities at Transnet Freight Rail and
   expect to reach a satisfactory agreement during November 2014 to convey the export
   product from the Waterberg to Richards Bay Coal Terminal.

   In addition, the company is in advanced discussions with a number of prospective
   purchasers of the export product and a further announcement in this regard will be made
   before the end of November 2014.


4. Further cautionary announcement
   Shareholders are advised to continue to exercise caution when trading in the Company’s
   securities until further announcements in regard to the above is made.



Stephen Miller
Director
The Waterberg Coal Company Limited


31st October 2014

JSE Sponsor
The Standard Bank of South Africa Limited




Market Release

31st October 2014


THE WATERBERG COAL COMPANY LIMITED
ABN 64 065 480 453

Registered office:
Level 2, 1 Walker Avenue West Perth, Western Australia 6005
Australia


Tel:+61 8 9485 0888
Fax: +61 8 9485 0077

South African office:
Level 1, The Place,
1 Sandton Dr
Sandton, 2146
South Africa

Tel: +27 10 594 2240
Fax: +27 10 594 2253


Contact:
Mr Stephen Miller
Executive Director/CEO

Or

Investor relations in South Africa:
Bruce Tinney
+27 (83) 408 3028

E-mail:
info@waterbergcoal.com.au


Directors:
Dr Mathews Phosa (Chairman)
Stephen Miller
(Executive Director and CEO)
Lee Boyd
(Director and Company Secretary)


                       
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