KEH - Keaton Energy Holdings Limited - Trading Statement

KEH - Keaton Energy Holdings Limited - Trading Statement                        
Keaton Energy Holdings Limited                                                  
(Incorporated in the Republic of South Africa)                                  
(Registration number 2006/011090/06)                                            
JSE share code: KEH ISIN: ZAE000117420                                          
("the Company")                                                                 
Trading Statement                                                               
The Company`s audited results for the year ended 31 March 2011 are expected to  
be published on or about 9 June 2011.                                           
Shareholders are advised that basic and headline earnings per share for the year
ended 31 March 2011 are expected to be between 10.0 cents and 10.5 cents (2010: 
basic earnings per share 4.1 cents, headline earnings per share 5.6 cents).     
Shareholders are advised that the above information has not been reviewed or    
reported on by the Company`s auditors.                                          
This trading statement is issued in terms of the JSE Limited`s Listings         
Requirements.                                                                   
Project update                                                                  
Progress on the Vanggatfontein Project has been good, with the 5-Seam plant     
operating to design, with excellent acceptance of the metallurgical coal product
by the domestic market and consequent strong sales.                             
The construction and commissioning of the 4- and 2-Seam plant was on track to   
deliver the full ramp-up commitment of thermal coal to Eskom by the end of July 
2011. However, Vanggatfontein`s ability to meet this commitment may be affected 
by a recent incident in which the support structure for one of the Dense Medium 
Separation unit feed bins failed during pre-commissioning.                      
Management is working closely with DRA Mineral Projects (Pty) Limited, the lump-
sum turnkey contractor responsible for construction of the plant, to mitigate   
the incident`s effect. While the financial implications of the incident have yet
to be established, insurance cover is in place.                                 
2 June 2011                                                                     
Bryanston                                                                       
Investment bank and sponsor                                                     
Nedbank Capital                                                                 
Date: 02/06/2011 13:45:00 Supplied by www.sharenet.co.za                     
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