KEH - Keaton Energy Holdings Limited - Keaton Energy receives Ministerial

KEH - Keaton Energy Holdings Limited - Keaton Energy receives Ministerial       
Consent for Leeuw Mining and Exploration (Proprietary) Limited ("LME")          
transaction                                                                     
KEATON ENERGY HOLDINGS LIMITED                                                  
(Incorporated in the Republic of South Africa)                                  
(Registration number 2006/011090/06)                                            
JSE share code: KEH ISIN: ZAE000117420                                          
("Keaton Energy" or "the company")                                              
Keaton Energy receives Ministerial Consent for Leeuw Mining and Exploration     
(Proprietary) Limited ("LME") transaction                                       
Shareholders are referred to the announcement released on SENS on 14 February   
2011, regarding the acquisition by Keaton Energy of a 74% interest in LME       
("the transaction").                                                            
Shareholders are now advised that the company has been informed by the          
Department of Mineral Resources that the Minister has consented to the change in
control of LME, in terms of Section 11 of the Mineral and Petroleum Resources   
Development Act.                                                                
Keaton Energy Managing Director Paul Miller said: "This is a very welcome final 
step in the transaction to acquire a controlling interest in LME. We now look   
forward to consolidating LME into the Keaton Energy group."                     
In terms of the transaction agreements, 16 622 222 shares are to be issued by   
Keaton Energy, to Plusbay Limited, an affiliate of Gunvor Group Limited, at     
R4.50 per share.  The proceeds of the issue will then be used to settle the     
acquisition of a 64% interest in LME from JPI Leeuw and Associates (Proprietary)
Limited and Anglo American Zimele Limited.                                      
The remaining 10% of LME will be acquired through the settlement of a R10       
million convertible loan provided to LME by Keaton Energy.                      
LME owns and operates the Vaalkrantz Anthracite Colliery near Vryheid in South  
Africa`s Kwa ZuluNatal province.  Vaalkrantz has been in production since 2003. 
In addition, LME has:                                                           
*    a renewed 200 000tpa participation in Richards Bay Coal Terminal`s Quattro 
export programme and a dedicated railway siding facility near Vaalkrantz;   
*    a number of new order mining rights and mining right applications over     
    other KwaZulu Natal properties, including;                                  
    *    the Koudelager anthracite project, which will provide future           
run-of-mine anthracite production to the Vaalkrantz plant;             
    *    the Braakfontein thermal coal project, near Newcastle;                 
    *    the Balgray anthracite project near Utrecht; and                       
    *    the Mpati anthracite project near Dundee, which LME has agreed to sell 
to Slater Coal, subject to the receipt and cession of a mining right.  
14 December 2011                                                                
Investment bank and sponsor                                                     
Nedbank Capital                                                                 
Date: 14/12/2011 13:00:28 Supplied by www.sharenet.co.za                     
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