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CZA - Coal of Africa Limited - Vele Integrated Water use License Granted Coal of Africa Limited (Incorporated and registered in Australia) (Registration number ABN 008 905 388) JSE Share code: CZA ASX Share code: CZA ISIN AU000000CZA6 ("CoAL" or the "Company") VELE INTEGRATED WATER USE LICENSE GRANTED CoAL is pleased to advise that the integrated water use licence for the Company`s Vele Colliery has been granted by the South African Department of Water Affairs. The application was lodged on 1 November 2009, and CoAL has since been in constant interaction with Government officials in order to progress its approval. The Company has undergone an intensive application process, including public participation meetings, to meet all the legislative requirements pursuant to the South African National Environmental Management Amendment Act, 1998 (Act No. 107 of 1998). John Wallington, CoAL`s Chief Executive Officer, commented: "Coal of Africa welcomes the decision to grant the licence. The Company is acutely aware of the sensitivity of the area and the significant responsibilities the approval brings." As previously announced, the rectification process relating to the compliance notice issued with respect to the Vele Colliery continues and any development in this regard will be announced in due course. Signed JOHN WALLINGTON Chief Executive Officer Bryanston 04 April 2011 JSE Sponsor Macquarie First South Advisers (Pty) Ltd For more information contact John Wallington Chief Executive Coal of Africa +27 11 575 7423 Officer Wayne Koonin Finance Director Coal of Africa +27 11 575 4363 Shannon Coates Company Coal of Africa +61 893 226 776 Secretary Chris Sim Nominated Evolution +44 20 7071 4300 Adviser Securities Melanie de JSE Sponsor Macquarie First +27 11 583 2000 Nysschen/Annerie South Advisers Britz/Yvette Labuschagne Jos Simson/Emily Financial PR Tavistock +44 207 920 3150 Fenton www.coalofafrica.com About CoAL: CoAL is an AIM/ASX/JSE listed coal mining and development company operating in South Africa. CoAL`s key projects include the Woestalleen Colliery, the Mooiplaats thermal coal mine, the Vele coking coal project and the Makhado coking coal project. The Mooiplaats coal mine commenced production in 2008 and is currently ramping up to produce 2 million tonnes per annum ("Mtpa"). CoAL`s Makhado coking coal project is expected to start production in 2013 and timing for Vele to reach production is still to be confirmed. These operations are targeted to collectively produce an initial 2Mtpa ramping up to a combined annual output of 10Mtpa of coking coal. In 2010, CoAL completed the ZAR467m acquisition of NuCoal Mining (Pty) Limited ("NuCoal"), a thermal coal producer with assets in South Africa in close proximity to CoAL`s Mooiplaats mine. NuCoal owns the Woestalleen Colliery, which has a number of off-take contracts in place and processes approximately 2.5Mtpa of saleable coal for domestic and export markets. NuCoal also owns two beneficiation plants, one fully operational mine producing approximately 300kt per month of ROM coal and has recently commenced production at a second mine. Date: 04/04/2011 07:08:04 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
