KEH - Keaton Energy Holdings Limited - Substantial across-the-board

KEH - Keaton Energy Holdings Limited - Substantial across-the-board             
production increases in FY2012                                                  
Keaton Energy Holdings Limited                                                  
(Incorporated in the Republic of South Africa)                                  
(Registration number 2006/011090/06)                                            
JSE share code: KEH  ISIN: ZAE000117420                                         
("Keaton Energy")                                                               
SUBSTANTIAL ACROSS-THE-BOARD PRODUCTION INCREASES IN FY2012                     
Johannesburg, South Africa. 11 April, 2012. Keaton Energy , in a production     
update released today, reports substantial across-the-board production          
increases from its South African operations in the financial year ended 31      
March 2012.                                                                     
The Company`s Vanggatfontein Colliery in Mpumalanga province delivered 955      
376t of washed 4- and 2-Seam thermal coal to power utility Eskom  between       
June 2011 and the end of the reporting period, and continues ramp-up towards    
its targeted 175 000t per month.                                                
Production of 5-Seam metallurgical coal for the domestic market from            
Vanggatfontein increased by 146% to 140 241 tonnes (t) from the previous        
year`s 56 886t.                                                                 
Vaalkrantz Colliery in Kwazulu-Natal province, over which Keaton Energy         
gained effective control on 14 December 2011, dispatched 375 950 tonnes of      
anthracite to domestic and export customers in the 12-month period to 31        
March 2012, a 76% increase over the previous year`s 213 503t.                   
Vaalkrantz`s exports of anthracite increased by 83% to 168 685t compared with   
91 875t in the 12-month period to 31 March 2011, while supply to the domestic   
market rose by 70% to 207 298t compared with 121 627t.                          
"Now, with two operating collieries within the group, we have a great base      
from which to grow to reach our 5-million tonne per annum target," says         
Managing Director Paul Miller.                                                  
"Our priorities now are to develop the Braakfontein export thermal coal         
project, near Newcastle in Kwazulu-Natal and to take the Sterkfontein Project   
in Mpumalanga further up the value curve."                                      
Sponsor                                                                         
Nedbank Capital                                                                 
Date: 11/04/2012 10:37:01 Supplied by www.sharenet.co.za                     
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