COAL OF AFRICA LIMITED - Response to announcement by HEI

Response to announcement by HEI

  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
                                                                                                                                           11 January 2016



                                                      RESPONSE TO ANNOUNCEMENT BY HEI



Coal of Africa Limited ("CoAL") notes the recent announcement on the Shanghai Stock Exchange by Haohua
Energy International (Hong Kong) Resource Co. Limited ("HEI") indicating their intention to subscribe for $5.0
million in the Company at a price of US$0.0435 per share. Any subscription by HEI would be subject to inter
alia CoAL shareholder approval and be conditional on HEI having received any necessary regulatory
approvals within the People’s Republic of China and approval for the issue of the subscription shares from the
Australian Foreign Investment Review Board. At this time, discussions remain incomplete, and no binding
agreements have been entered into.

The Company will provide a further update to shareholders in due course.

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

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

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
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).




                                                                                                              014-3122-7016/1/EUROPE

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