COAL OF AFRICA LIMITED - Corporate Update

Corporate Update

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   
6 November 2014

Coal of Africa Corporate Update

Coal of Africa (“CoAL”) is pleased to provide an update on the progress made regarding the
announced equity raise approved by shareholders on 25 September 2014, as well as the Sale and
Purchase agreement (“SPA”) signed for the sale of Mooiplaats Colliery.

Equity raise

On 26 August 2014 CoAL announced a conditional two stage private placement which is expected
to result in CoAL issuing up to 695 million additional shares at 0.055 GBP per share, raising up to
US$64.9 million (GBP38.2 million).

CoAL is pleased to announce it has been informed that all regulatory approvals required by Haohua
Energy International (Hong Kong) Resource Co. Limited ("HEI") have been granted. This concludes
all conditions precedent regarding the first tranche of US$23.4 million (GBP13.80 million). Notice of
satisfaction of the first subscription conditions has been sent to all participating investors in
accordance with the subscription agreements.

CoAL will apply for the admission of the 251,000,000 ordinary shares, to be issued under the first
stage of the private placement ("Stage 1 Placement Shares") to trading on AIM, on the ASX and on
the JSE. It is expected that the Stage 1 Placement Shares will be issued and admitted to trading on
or around 10 November 2014. The Stage 1 Placement Shares will be fully paid ordinary shares in
the capital of CoAL and rank equally in all respects with the existing fully paid ordinary shares on
issue.

The second stage of the equity raise of US$ 41.5 million (GBP24.42 million) is conditional to TMM
Holdings (Proprietary) Limited ("TMM") having obtained sufficient funds to purchase its second
stage placement shares. Further details on this condition are available in the announcement dated
26 August 2014.


Mooiplaats disposal

Blackspear Capital (“Blackspear”), a wholly owned subsidiary of Blackspear Holdings Proprietary
Limited, the purchaser of the Mooiplaats Colliery has agreed terms with a financial and operational
partner to fund Blackspear’s acquisition of Mooiplaats. Approval is subject to the completion of the
technical due diligence and final board approval which is expected by the end of November 2014.
            
                                                                                                                                                         
Following the receipt of the final regulatory approvals consistent with a transaction of this nature,
CoAL expects financial close of the transaction by the end February 2015. Blackspear is confident
that the financial guarantees for the full purchase price will be received prior to the end of December
2014, in line with the terms of the SPA.


David Brown, Chief Executive Officer, commented:

“CoAL has confidence in the successful completion of the equity raise as well as the successful sale
of Mooiplaats. These transactions will place the company in a position to conclude on all
outstanding legacy issues and commence project development. CoAL believes in the safe and
sustainable development of our resources in the Limpopo province and is confident that developing
the project pipeline will create wealth for all stakeholders involved.”




For more information contact:
David Brown                             Chief Executive Officer          Coal of Africa                      +27 10 003 8000
Michael Meeser                          Chief Financial Officer          Coal of Africa                      +27 10 003 8000
Celeste Harris                          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
Chris Sim/George Price/Jeremy Ellis     Nominated Adviser                Investec Bank plc                  +44 20 7597 5970
Charmane Russell/Jane Kamau             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).




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