SENTULA MINING LIMITED - Further cautionary announcement

Further cautionary announcement

SENTULA MINING LIMITED
Incorporated in the Republic of South Africa
(Registration number: 1992/001973/06)
Share code: SNU ISIN: ZAE000107223
(“Sentula” or “the Company”)



FURTHER CAUTIONARY ANNOUNCEMENT



Shareholders are referred to the cautionary announcement dated 26 June 2013 and the subsequent further
cautionary announcements dated 7 August 2013 and 19 September 2013 regarding the proposed disposal
by Sentula of its shares in its wholly-owned subsidiary, Benicon Coal Proprietary Limited ("Benicon Coal"),
through which it holds its 60% equity interest in the mine operated by Nkomati Anthracite Proprietary Limited
("Nkomati"), the further cautionary announcement dated 20 September 2013 regarding the approach by
parties interested in certain other businesses within the Sentula portfolio, and the subsequent further
cautionary announcements, the last of which was dated 18 December 2013.

Shareholders are advised that Sentula and a consortium (“Consortium”) comprising of Miranda Mineral
Holdings Limited and Mochiba Investments Proprietary Limited have, in principle, agreed the key commercial
terms on which the Consortium will, inter alia, acquire all of the shares in Benicon Coal, which transaction will
have the net effect of realising R150 million in cash for Sentula (“Proposed Transaction”).

In terms of the Proposed Transaction, it is anticipated that Sentula will realise the R150 million by way of
repayments of Nkomati's existing indebtedness to Sentula under Nkomati's existing loan facility; R100 million
once the Proposed Transaction becomes effective and the balance by way of a deferred payment structure.

The Proposed Transaction will be subject to the conclusion of a binding legal agreement, regulatory
approvals (to the extent required), and other conditions typical for a transaction of this nature. Sentula and
the Consortium have, for the time being, agreed to negotiate exclusively with one another in order to give
effect to the Proposed Transaction and negotiations with other interested parties involving the disposal of
Sentula's interests in Benicon Coal and Nkomati have accordingly been terminated.

The board of directors is still engaged in the strategic evaluation of the alternative options, including the
disposal of the Bankfontein mining right, to further unlock shareholder value and commensurately reduce the
Group’s senior debt, which review may result in actions that could have a material effect on the price of
Sentula’s securities.

Accordingly, shareholders are advised to continue exercising caution when dealing in Sentula’s securities
until further announcements are made.

Johannesburg
29 January 2014

Sponsor
Merchantec Capital

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