Legal Action Instituted Coal of Africa (Incorporated and registered in Australia) (Registration number ABN 008 905 388) ISIN AU000000CZA6 JSE/ASX/AIM share code: CZA ("CoAL or the "Company" or the "Group") 28 September 2012 Legal action instituted by Coal of Africa Coal of Africa Limited (“CoAL”) confirms that it commenced proceedings in the Federal Court of Australia against former finance director Mr Blair Sergeant. The proceedings involve allegations of breaches of duties on the part of Mr Sergeant during his time with the company as both a director and employee. As part of these proceedings CoAL has successfully obtained an order from the Federal Court of Australia (“Federal Court”) to freeze A$6 million of Mr Sergeant’s assets. These alleged breaches of duties relate to a specific corporate transaction in which Mr Sergeant was involved in 2009 and 2010. As the proceedings are currently before the Federal Court, CoAL cannot disclose further details of these allegations at this time whilst it awaits a formal response to the Federal Court from Mr Sergeant. Further updates will be made as appropriate. Approved by JOHN WALLINGTON Chief Executive Officer For more information contact: John Wallington Chief Executive Officer Coal of Africa +27 11 575 4363 Wayne Koonin Financial Director Coal of Africa +27 11 575 4363 Shannon Coates Company Secretary Coal of Africa +61 89 322 6776 Sakhile Ndlovu Investor Relations Coal of Africa +27 11 575 6858 Jos Simson/Emily Fenton Financial PR (United Tavistock +44 20 7920 3150 Kingdom) Chris Sim/Neil Elliot Nominated Adviser Investec Bank plc +44 20 7597 5970 Robert Smith JSE Sponsor Investec Bank Limited +27 11 286 7000 Charmane Russell/Jane Financial PR (South Africa) Russell & Associates +27 11 880 3924 Kamau or +27 82 372 5816 About CoAL: CoAL is an AIM/ASX/JSE listed coal exploration, development and mining company operating in South Africa. CoAL’s key projects include the Vele Colliery (coking and thermal coal), the Greater Soutpansberg Project, including CoAL’s Makhado Project (coking coal) and the Mooiplaats and Woestalleen Collieries (both thermal coal). Date: 28/09/2012 11:20:00 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.