FURTHER 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") FURTHER UPDATE ON THE VLAKLAAGTE AND ELANDSPRUIT TRANSACTIONS 1. Background Shareholders are referred to the announcements released on SENS on 31 July 2012, 3 September 2012, 5 October 2012 and 8 November 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 meanings ascribed thereto in the Previous Announcements. 2. Extension of Conditions Precedent 2.1 The dates for satisfaction of certain of the remaining Conditions Precedent have been extended by agreement between Xstrata and Wescoal Mining as follows: a) Vlaklaagte Disposal – By no later than 15 February 2013 (previously 15 January 2013): - a circular to the shareholders of Wescoal and approval thereof by the JSE; and - approval of the Vlaklaagte Disposal by the shareholders of Wescoal and by Wescoal in its capacity as sole shareholder of Wescoal Mining, pursuant to section 112 of the Companies Act, 2008. b) Elandspruit Acquisition – By no later than 15 February 2013 (previously 15 January 2013): - a circular to the shareholders of Wescoal and approval thereof by the JSE; and - approval of the Elandspruit Acquisition by the shareholders of Wescoal in accordance with the JSE Listings Requirements. 2.2 The dates for satisfaction of certain of the remaining Conditions Precedent have been extended by agreement between Wescoal, Wescoal Mining, Wescoal Exploration and Prouadafrique (“Proudafrique Agreement”)as follows: By no later than 15 February 2013 (previously 15 December 2012): - the board of directors of Wescoal Mining, Wescoal Exploration and Prouadafrique approve the Prouadafrique Agreement; - approval of the Prouadafrique Agreement by the shareholders of Wescoal Exploration; and - the Wescoal Sale Agreement becomes unconditional in its terms. An additional clause regarding shareholder approval of the Prouadafrique Agreement has been included in the above agreement. 3. Circular to shareholders Shareholders were advised that a circular containing full details of the Transactions would be distributed to them on or before 30 November 2012. The circular is now expected to be distributed to shareholders on or before 15 January 2013. Corporate adviser & Sponsor to Wescoal Legal Advisers to Wescoal Exchange Sponsors KWA Attorneys Legal Advisers to Xstrata Baker & McKenzie Johannesburg 21 December 2012 Date: 21/12/2012 08:32:00 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.