Update on Elandspruit Mining Right 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 Elandspruit Mining Right Shareholders are referred to the SENS announcement released on 2 August 2013 in which the completion of the acquisition of the Elandspruit Mining Right from Xstrata South Africa (Pty) Ltd was announced. Wescoal would like to update the market progress on the project. The Elandspruit Mining Right contains five potentially mineable coal seams which occur from sub- outcrop to a maximum depth of about 70 metres below surface All seams are near horizontal in attitude and appear to be devoid of geological complexities such as faulting or dolerite intrusions. Consequently the mining approach is expected to prove relatively straightforward. Wescoal commissioned The Mineral Corporation to undertake a Phase 1 desktop study intended to investigate a range of conceptual mine development options as a preface to more detailed feasibility work. The study was based on geological models which delivered the Measured Coal Resources documented in the Competent Person’s Report of September 2012 as tabulated below. Seam Resources In situ Coal Qualities (adb) Thickness GTIS MTIS IM ASH VM FC CV TS Name RD m Mt Mt % % % % MJ/kg % 4L 1.64 1.49 2.309 2.078 3.4 19.2 21.0 56.5 24.84 1.11 3 0.46 1.44 0.968 0.823 2.8 15.4 30.6 51.3 27.27 2.81 2U 1.83 1.68 6.203 5.582 2.6 35.1 20.3 42.0 18.77 1.18 2L 2.80 1.61 9.738 8.764 3.0 29.5 20.6 46.9 21.13 0.97 1 3.32 1.62 14.349 12.914 2.6 30.5 21.7 45.1 21.24 0.93 Total Resources 33.567 30.210 RD - Relative Density, GTIS - Gross Tonnes In-situ, MTIS - Mineable Tonnes In-situ. IM – Inherent Moisture, VM – volatile matter, FC – Fixed Carbon, CV – Calorific Value, TS – Total Sulphur. Coal Resources reported in accordance with the classification criteria of the South African Code for the Reporting of Mineral Resources and Mineral Reserves (the SAMREC Code 2008, as amended 2009). All Coal Resources classified as measured. Coal Resources reported on an air-dried, uncontaminated basis. Minimum seam thickness cut-off of 0.5m applied to the Nos 4L, 2U, 2L, and 1 Seams, with 0.4m applied to the No 3 Seam. Combined geological and modelling losses of 10% applied. Resource estimates were prepared by Mr Mark C Stewardson of The Mineral Corporation who is registered with the South African Council for Natural Scientific Professions (SACNASP Reg No 400119/93) and qualifies as a Competent Person as defined by the SAMREC Code. Mr Stewardson consents to the inclusion of the above resource statement. The results of the Phase 1 desktop study indicated that annual production of approximately 2 million tonnes is targetable over a 15-year mine life at an average strip ratio of 2.3:1.0 (BCM waste:tonnes coal) for the combined seams. Mine scheduling simulations also indicated that the grade of as-mined coal should be relatively consistent over the life-of-mine with raw qualities averaging 21.14MJ/kg calorific value, 30.0% ash, 21.5% volatile matter and 1.08% sulphur content (air-dried, uncontaminated basis). The Phase 1 desktop study findings suggest that the most attractive result from a number of alternative production scenarios was achieved in an option which envisaged marketing raw coal from the No 1 and No 2 Lower Seams as an Eskom-type product, with raw coal from the No 3 Seam and washed coal from the No 2 Upper and No 4 Lower Seams sold into the Export/Inland market. Further work is required to test the feasibility of this scenario. Modelling exercises predicted that washing all mined coal for a 26MJ/kg product (adb) could achieve an average theoretical yield of 50%. A range of processing alternatives designed to deliver various sales options to the Export, Inland and Eskom markets are being assessed by Wescoal. These may involve toll-treating the run-of-mine coal off-site or upgrading through a dedicated on-site facility. At this stage of project evaluation, no coal reserves have been declared as further work is required to develop a final life-of-mine plan as required by the SAMREC Code (2008, as amended 2009). Wescoal is currently progressing the required environmental authorisations in terms of the National Environmental Management Act, National Water Act, National Environmental Management: Waste Act and National Heritage Resources Act and has commenced negotiations with surface right owners. These processes are expected to be completed during the first half of 2014 following which the commissioning of the Elandspruit mine will commence with production expected to attain 200,000 tonnes per month by the last quarter of 2014. The CEO of Wescoal Andre Boje said: “We are very pleased with the results of the Phase 1 study. This is a major project for Wescoal and it is receiving senior management’s full attention to ensure it is commissioned during 2014.” The Phase 1 desktop study referred to in this announcement is available on the Company’s website www.wescoal.com. The Phase 1 desktop study has been prepared under the direction of Mr. John Murphy, a director of The Mineral Corporation and a Registered Professional Natural Scientist (SACNASP Reg. No. 400004/94). Mr. John Murphy has provided his consent for the public reporting of the Phase 1 desktop study. 2 October 2013 Johannesburg Sponsor Exchange Sponsors Date: 02/10/2013 12:30:00 Produced by the JSE SENS Department. 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