WSL - Wescoal Holdings Limited - Trading Update WESCOAL HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number 2005/006913/06) (JSE code: WSL ISIN: ZAE000069639) ("Wescoal" or "the company") TRADING UPDATE In terms of the Listings Requirements of the JSE Limited ("JSE"), section 3.4(b), companies are required to publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the financial results for the period will differ by at least 20% from the financial results for the previous corresponding period. Shareholders are advised that the company expects earnings per share for the year ended 31 March 2011 to decrease from 4.57 cents to a loss per share of between 26.2 cents and 32.0 cents as compared to the comparative period. Headline earnings per share for the year ended 31 March 2011 is expected to decrease from 4.28 cents to a loss per share of between 23.3 cents and 28.5 cents as compared to the comparative period. The decrease in earnings is primarily due to: - Write off of all mining costs incurred at the Sutha operation at Khanyisa Colliery; - Reduced production and increased costs due to flooding in the quarter ended 31 March 2011; - Reduced production resulting in losses at the Blesboklaagte washing plant; - Accelerated write off of mining in progress and mine establishment costs; and - Impairment of goodwill in Chandler Coal (Pty) Limited. Khanyisa Colliery returned to full production during April 2011 and a change in mining methods will prevent future flooding at the operation. To date, no action has been launched by Sutha Civils (Pty) Limited ("Sutha") to substantiate and demand the money they very publicly claimed was due to them. Wescoal did however approach the court in March 2011 to interdict Sutha from continuing to make unsubstantiated and derogatory statements to the media. An interim order was granted and should be made final during July 2011. Blesboklaagte washing operation stopped production at the end of March 2011 and the sale of the plant is currently being finalized. The financial information on which this trading statement is based has not been reviewed or reported on by the company`s auditors. 24 June 2011 Johannesburg Sponsor Exchange Sponsors Date: 24/06/2011 17:15:01 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.