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CZA - Coal of Africa Limited - Vele section 24G application update Coal of Africa Limited (Incorporated and registered in Australia) (Registration number ABN 008 905 388) JSE Share code: CZA ASX Share code: CZA AIM Share code: CZA ISIN AU000000CZA6 ("CoAL" or the "Company") VELE SECTION 24G APPLICATION UPDATE Coal of Africa Limited ("CoAL" or "the Company") advises that as part of the Section 24G Application submitted by its wholly owned subsidiary Limpopo Coal Company ("LCC") to the Department of Environmental Affairs ("DEA"), an administration fine of ZAR9.250 million (A$1.259 million) has been paid to the department. Pursuant to CoAL`s commitment to comply with all legislative requirements, including the compliance notices issued in respect of Vele Colliery, LCC submitted a rectification application in terms of Section 24G of the South African National Environmental Management Act, 107 of 1998. The payment of the administration fine is a pre-condition to enable the DEA to consider and decide upon the rectification application relating to an environmental authorisation for Vele Colliery. CoAL continues to engage with the South African Government in good faith and transparently in order to co-operate and comply with all legislative requirements. Authorised by JOHN WALLINGTON Chief Executive Officer Bryanston 11 May 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 Financial Coal Of Africa +27 11 575 6797 Director Jeremy Ellis/ Nominated Evolution +44 20 7071 4300 Romil Patel/ Adviser Securities Chris Sim Melanie de JSE Sponsor Macquarie First +27 11 583 2000 Nysschen/Annerie South Advisers Britz/Yvette Labuschagne/ Natalie Di-Sante 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 thermal 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 ZAR467 million 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 Zonnebloem mine producing approximately 300kt per month of ROM coal and has recently commenced production at a Hartogshoop mine. Date: 11/05/2011 15:22:01 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.
