FURTHER UPDATE ON THE VLAKLAAGTE AND ELANDSPRUIT TRANSACTIONS AND LEGAL ACTION AGAINST WESCOAL 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") FURTHER UPDATE ON THE VLAKLAAGTE AND ELANDSPRUIT TRANSACTIONS AND LEGAL ACTION AGAINST WESCOAL 1. Transactions update Shareholders are referred to the announcements released on SENS on 31 July 2012 and 3 September 2012 ("Previous Announcements") 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 Announcements. Shareholders are advised that Wescoal Mining has provided written confirmation to Xstrata on 27 September 2012, that it is satisfied with the geological data in relation to the Elandspruit Mining Area. The associated condition precedent to the Elandspruit Acquisition has accordingly been timeously fulfilled.. Shareholders will be advised as soon as the remaining conditions precedent to the Transactions have been met. Shareholders are reminded that a circular containing full details of the Transactions will be distributed to shareholders on or before 31 October 2012. 2. Legal action Shareholders are advised that an application has been served on inter alia, Proudafrique Trading 147 (Pty) Limited (“Proudafrique”), Minoscape (Pty) Limited (“Minoscape”) Wescoal, Wescoal Exploration (Pty) Limited (“Wescoal Exploration”), Wescoal Mining,and three other respondents by Johannes Cornelius Van Der Westhuizen (“Van Der Westhuizen”), to: 1) set aside the shareholders agreement concluded between, Proudafrique and Wescoal Exploration on 7 October 2007; 2) set aside the agreement concluded on 30 July 2012 between Wescoal Exploration, Wescoal Mining and Proudafrique in terms whereof the Vlaklaagte Prospecting Right was transferred from Wescoal Exploration to Wescoal Mining; and 3) for the Vlaklaagte, Verblyden and Silverbank Rights to be transferred back to Proudafrique. Van der Westhuizen is a minority shareholder of Proudafrique. The application is being opposed by Wescoal, Wescoal Exploration, Wescoal Mining, Proudafrique and Minoscape (the majority shareholder in Proudafrique). 2 Shareholders will be kept informed of the outcome of the legal action. Corporate adviser & Sponsor to Wescoal Legal Advisers to Wescoal Exchange Sponsors KWA Attorneys Legal Advisers to Xstrata Baker & McKenzie Johannesburg 5 October 2012 Date: 05/10/2012 11:17:00 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.