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KEH - Keaton Energy Holdings Limited - Capital injection, other measures spur Leeuw Mining & Exploration absorption into Keaton Energy `Fold` Keaton Energy Holdings Limited (Incorporated in the Republic of South Africa) (Registration number 2006/011090/06) JSE share code: KEH ISIN: ZAE000117420 ("Keaton Energy") MEDIA RELEASE CAPITAL INJECTION, OTHER MEASURES SPUR LEEUW MINING & EXPLORATION ABSORPTION INTO KEATON ENERGY `FOLD` Keaton Energy continues apace with plans for absorbing into its portfolio the assets of recently acquired Leeuw Mining & Exploration (Pty) Limited (LME), says Keaton Energy Managing Director Paul Miller. In a presentation to media during a site visit to LME`s Vaalkrantz Anthracite Colliery near Vryheid today, Miller highlighted key steps taken by Keaton Energy since early 2011 to turn around the under-performing Vaalkrantz operation. These have included: * injecting R65 million in capital to:
- complete development of the colliery`s West Adit; - acquire urgently needed equipment; and - pay creditors * appointing a new mine manager; * taking over the marketing, payroll and human resource functions, delivering: - better product pricing; - job security for 700+ employees and contractors; and - improving industrial relations. Acquisition of a 74% stake in LME for an effective R64 million in an all- share transaction concluded early this year gives Keaton Energy: * in Vaalkrantz, a second operating colliery, augmenting the company`s own Vanggatfontein operation, brought into production during 2011 to deliver both metallurgical coal to domestic users and thermal coal, under contract, to power utility Eskom; * exploration projects to augment its own advanced Sterkfontein Project, key amongst which is LME`s Braakfontein Project, which has the potential to be developed into a 660 000tpa thermal coal producer with a life of more than 20 years; * an export foothold through a 200 000tpa RBCT Quattro export participation; * a broader product range; * a consequent wider customer base; and * a major new shareholder in Swiss-based global commodity trader Gunvor International. Miller says that, through a strategy combining greenfields exploration and project development with judicious acquisition, Keaton Energy has attained - in just five years of existence - its medium-term production target of two million tonnes a year. "Our enlarged portfolio, with assets well-placed along the value curve - together with the prospect of continuing robust markets locally and internationally for our expanded product range - positions us well to attain our next medium-term production target of five million tonnes a year." Keaton Energy reports its results for the year ended 31 March 2012 on or about 30 May 2012. Note: Miller`s presentation today can be accessed on the Keaton Energy website, www.keatonenergy.co.za Queries: James Duncan Russell and Associates +27 11 880-3924 (landline) +27 (0)82 892-8052 (mobile) james@rair.co.za Disclaimer: All statements in this media release, other than historical facts, that address exploration activities and mining potential are forward-looking statements. Although Keaton Energy believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements should not in any way be construed as guarantees of future performance. Factors that could cause developments to differ materially from those expressed include exploration results, technical analysis and lack of availability to the company of necessary capital to progress its projects. The company is subject to specific risks inherent in the exploration and mining business and general economic and business conditions. 28 March 2012 Sponsor Nedbank Capital Date: 28/03/2012 14:00:01 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.
