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

In accordance with JSE Listings Requirements, shareholders are
referred to the announcement dated 29 January 2015 (“the 29 January  
Announcement”) and are advised of the following:

1.   The Eskom Project

     As set out in the 29 January Announcement, discussions with
     Eskom remain 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 seeks to resolve all outstanding requirements
     during the course of 2015.

2.   The SBSA Convertible Secured Facility (“Facility”)

     As set out in the 29 January Announcement, the extension on
     the Facility remains on an on-demand basis. The revised
     balance of the Facility as at 28 February 2015, including
     accumulated interest, is approximately A$42.5m.

3.   The Export Project - Definitive Feasibility Study (“DFS”)

     As previously advised, Ardbel were commissioned to produce a
     DFS on the viability of a standalone Export Project to be
     located in the south of the Waterberg Coal Project (“WCP”)
     area. The Export Project anticipates the build up to 4
     million tonnes per annum (in saleable product) over a six
     year period, with first coal product forecast for the 3rd
     quarter 2016. The abbreviated period to complete this study
     accrues from the significant database and work product that
     was generated from the Eskom Project DFS. Additional work has
     been carried out with respect to logistics (including rail),
     coal product off-take arrangements, water and mine planning.

     With a draft of the DFS for a stand-alone Export Project on
     hand; the WCP partners are advancing discussions with certain
     Banks and funding agencies with respect to funding
     requirements for the proposed Export Project development.

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
     12 March 2015

     JSE Sponsor
     The Standard Bank of South Africa Limited

     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:
     Lawrie Mackintosh

     Tel: +27 10 594 2240

     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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