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OPT - Optimum Coal Holdings Limited - Acquisition of Remhoogte Prospecting Rights OPTIMUM COAL HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number 2006/007799/06) Share code: OPT ISIN: ZAE000144663 Issuer code: OPT ("Optimum Coal" or "the Company") OPTIMUM COAL - ACQUISITION OF REMHOOGTE PROSPECTING RIGHTS Optimum Coal, a leading South African coal mining and exploration group, listed on the JSE Limited, wishes to inform shareholders and update the market about its acquisition of two prospecting rights ("the Remhoogte Prospecting Rights") for a cash consideration of R235 million from BHP Billiton Energy Coal South Africa Limited ("BECSA") ("the acquisition"). The Remhoogte Prospecting Rights are located to the south and west of Davel, in the Ermelo Coalfield. The Remhoogte Prospecting Rights have an inferred resource of approximately 306.5Mt, based on 219 boreholes. These resources are based predominantly on the C Lower seam and the C Upper seam where it is able to be mined together with the C Lower seam. Once developed, the Remhoogte mine will be a large scale, 2nd quartile cash cost, underground export focussed mine with new infrastructure and an expected life of mine of 16 years before further possible life extension opportunities. The mine is expected to produce 4 Mtpa run of mine product that will produce an estimated 2.5mtpa of saleable 6000kcal export coal and an estimated 400ktpa of Eskom middlings product with a quality of 20.8 Mj/kg. Remhoogte is conveniently situated for exports of thermal coal as it is directly adjacent to the RBCT coal line. Remhoogte is closer to Richards Bay than the mines of the Witbank Coalfield The acquisition is subject to various conditions precedent including section 11 approval from the Department of Mineral Resources. The acquisition will be funded from own cash resources and re-financed group debt facilities. CEO Mike Teke said "In addition to our Vlakfontein and Overvaal projects, the Remhoogte acquisition provides Optimum Coal with another attractive green- fields growth opportunity and substantially improves the high quality export component of our overall coal portfolio. At this stage it is envisaged that Remhoogte will principally be a replacement for Optimum Colliery`s export saleable production in the medium to long term, although market conditions and an improvement in export logistics could result in the development of the project being expedited. In addition to the production of high quality exports, the middlings to be produced will be an ideal feedstock for Eskom`s nearby Camden and Majuba power stations." Shareholders are advised that the Company continues to trade under cautionary as advised on SENS on 17 August 2011. www.optimumcoal.com 19 August 2011 Johannesburg Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Financial Communications Advisers COLLEGE HILL Date: 19/08/2011 12:00:01 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.
