UPDATE ON THE VLAKLAAGTE AND ELANDSPRUIT TRANSACTIONS 1 WESCOAL HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number 2005/006913/06) JSE Share code: WSL & ISIN: ZAE000069639 ("Wescoal" or "the Company") UPDATE ON THE VLAKLAAGTE AND ELANDSPRUIT TRANSACTIONS Shareholders are referred to the announcement released on SENS on 31 July 2012 ("Previous Announcement") relating to the Vlaklaagte Acquisition, the Vlaklaagte Disposal and the Elandspruit Acquisition (“the Transactions”). Capitalised terms used and not otherwise herein defined, shall have the meaning ascribed thereto in the Previous Announcement. Shareholders are advised that the condition precedent to both Transactions, namely that ARM Coal in writing waives its right of first refusal in relation to the sale by Xstrata of the Elandspruit Mining Right to Wescoal Mining, has been fulfilled. Satisfaction of the remaining conditions precedent to the Transactions, is in the process of being procured. In addition, shareholders are advised that a circular containing full details of the Transactions will be distributed to shareholders on or before 31 October 2012. Corporate adviser & Sponsor to Wescoal Legal Advisers to Wescoal Exchange Sponsors KWA Attorneys Legal Advisers to Xstrata Baker & McKenzie Johannesburg 3 September 2012 Date: 03/09/2012 09:09:00 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.