Further cautionary announcement VILLAGE MAIN REEF LIMITED (Incorporated in the Republic of South Africa) (Registration number 1934/005703/06) Share Code: VIL ISIN: ZAE000154761 (“Village”) FURTHER CAUTIONARY ANNOUNCEMENT Shareholders are referred to the announcement released over SENS on 18 March 2013 wherein shareholders were advised that Village had entered into a binding funding agreement (“the transaction”) with Continental Coal Limited (“Continental”), a South African thermal coal production, development and exploration company, listed on the Australian Securities Exchange (“ASX”) and the Alternative Investment Market of the London Stock Exchange (“AIM”), pursuant to which: - Village and Continental have entered into a private placement agreement in terms of which, inter alia, Village will subscribe for 100 000 000 ordinary shares in Continental (“Continental shares”) at an issue price of A$0.08 per share (the “private placement”); - Village and Continental have entered into a buy-back agreement in terms of which Village will acquire all of the shares held by shareholders of Continental holding parcels of Continental shares with a market value of less than A$ 500 (“minority members”) (the “buy-back”); and - Village may, up to 30 April 2014, acquire further Continental shares on the market at a price of up to A$0.10 per share, thereby increasing Village’s shareholding in Continental to 19.9% of the issued share capital of Continental. Both the timing and price of the on-market purchases of Continental shares by Village will be at the discretion of Village. The financial effects of the transaction (which is categorised as a category 2 transaction for purposes of the JSE Listings Requirements) are still in the process of being finalised and will be published in due course. Shareholders are advised to continue to exercise caution when dealing in their shares until the financial effects of the transaction are announced. 2 May 2013 Sponsor Java Capital Date: 02/05/2013 08:30:00 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.