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FORBES & MANHATTAN COAL CORP - Forbes Coal extends its opencast operations

Release Date: 21/01/2014 10:19
Code(s): FMC     PDF:  
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Forbes Coal extends its opencast operations

        


Forbes & Manhattan Coal Corp.
(Registration number: 002116278)
(External company registration number: 2011/011661/10)
Share code on the Toronto Stock Exchange: FMC
Share code on the JSE Limited: FMC
ISIN: CA3451171050
(“Forbes Coal” or “the Company”)


FORBES COAL EXTENDS ITS OPENCAST OPERATIONS

TORONTO, ONTARIO – January 20, 2014: Forbes & Manhattan Coal Corp. (TSX: FMC)
(JSE: FMC) (“Forbes Coal” or the “Company”) has entered into an agreement with Ikwezi
Mining Proprietary Limited (“Ikwezi”) for the acquisition of a portion of the Ikwezi mining right
over the property known as Alleen No. 2, located north of Dundee in the Kwa-Zulu Natal
province in South Africa, adjacent to Forbes Coal’s current Magdalena opencast operations
(“Alleen No. 2”).

Zinoju Coal Proprietary Limited, a subsidiary of Forbes Coal, will acquire Alleen No. 2 for a
purchase price of ZAR 8 million (CAD$0.8 million), based on the estimated run of mine that can
be extracted from the mining right area. If the run of mine actually extracted exceeds the
agreed upon production threshold, Ikwezi is entitled to receive a top-up payment equivalent to
ZAR 10 (CAD$1) per tonne extracted which exceeds the production threshold.

The agreement is subject to the Company receiving written consent from the Minister of Mineral
Resources of the application of sale of the mining right from Ikwezi and the application to
purchase the mining right by the Company in terms of section 102 of the Mineral and Petroleum
Resources Development Act on or before 30 April 2014.

About Forbes Coal

Forbes Coal is a coal producer in southern Africa. It holds a majority interest in two operating
mines through its 100% interest in Forbes Coal (Pty) Ltd., a South African company which has a
70% interest in Zinoju Coal (Pty) Ltd. (“Zinoju”). Zinoju holds a 100% interest in the Magdalena
bituminous mine and the Aviemore anthracite mine in South Africa. Forbes Coal has an
experienced coal-focused management team.

Cautionary Notes:

This press release contains “forward-looking information” within the meaning of applicable
Canadian securities legislation. Forward-looking information includes, but is not limited to,
statements with respect to the acquisition of the mining right over Alleen No. 2; future payments
due to Ikwezi and to the future financial or operating performance of Forbes Coal and its
projects. Generally, forward-looking information can be identified by the use of forward-looking
terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or
“believes”, or variations of such words and phrases or state that certain actions, events or
results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-
looking information is subject to known and unknown risks, uncertainties and other factors that
may cause the actual results, level of activity, performance or achievements of Forbes Coal to
be materially different from those expressed or implied by such forward-looking information,
including but not limited to: general business, economic, competitive, foreign operations,
political and social uncertainties; a history of operating losses; delay or failure to receive board
or regulatory approvals; timing and availability of external financing on acceptable terms; not
realizing on the potential benefits of the proposed transaction; conclusions of economic
evaluations; changes in project parameters as plans continue to be refined; future prices of
mineral products; failure of plant, equipment or processes to operate as anticipated; accidents,
labour disputes and other risks of the mining industry; and, delays in obtaining governmental
approvals or required financing or in the completion of activities. Although Forbes Coal has
attempted to identify important factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other factors that cause results not
to be as anticipated, estimated or intended. There can be no assurance that such information
will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue reliance on
forward-looking information. The Company does not undertake to update any forward-looking
information, except in accordance with applicable securities laws.

FOR FURTHER INFORMATION PLEASE CONTACT:

Stephan Theron                                          Sarah Williams
President and Chief Executive Officer                   Vice President - Finance
+1 (416) 861-5912                                       +27 11 656 3206
Email: stheron@forbescoal.com                           Email : swilliams@forbescoal.com

Craig Wiggill
Chairman
Email: crwiggill@gmail.com

21 January 2014
Johannesburg

Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)


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