Keaton Energy announces another record production year Keaton Energy Holdings Limited (Incorporated in the Republic of South Africa) (Registration number 2006/011090/06) JSE code: KEH ISIN code: ZAE000117420 ("Keaton Energy" or the “company”) Keaton Energy announces another record production year Keaton Energy has released the following production update for the financial year ended 31 March 2014 ahead of the release in mid-June 2014 of the company’s year-end results. Key statistics Continued good safety performance Vanggatfontein Colliery Lost Time Injury Frequency Rate (LTIFR) of 0.09 (FY13: zero) Vaalkrantz Colliery LTIFR of 0.23 (FY13: 0.36) Thermal coal production up 45% to 2.2Mt Metallurgical coal production up 2% to 0.4Mt Discard and other coal product sales up 70% to 1.0Mt Vanggatfontein Colliery Keaton Energy’s Vanggatfontein Colliery delivered 2 192 519t of washed 2- and 4-Seam thermal coal to Eskom during the year, an increase of 45% from the previous year’s 1 509 681t. Sales of 5-Seam metallurgical coal increased 49%, to 97 635t from 65 661t, in line with the mine plan. The increased utilisation of the 5-Seam plant allowed limited washing of other coals: 145 785t were toll washed and 10 328t of B-grade market development product was produced. The colliery ended the year with a LTIFR of 0.09, a commendable effort by all those on the site. Mandi Glad, Chief Executive Officer said, “FY14 saw Vanggatfontein reach operational steady state and, importantly, deliver on results. This long life colliery now forms the backbone of the soon to be enlarged Vanggatfontein-Moabsvelden operation which will form the core of the growing Keaton group of companies.” Vaalkrantz Colliery Vaalkrantz Colliery dispatched 303 837t of anthracite to domestic and international metallurgical markets, a 7% decrease over the previous year’s 326 597t. The operation continued to suffer from extremely difficult mining conditions in the West Alfred section of the mine which limited production. However, it is pleasing to note that despite these difficulties, the colliery’s safety performance improved, a testament to the dedication and application of all those involved. Mandi Glad added “With its short remaining life, operating conditions at Vaalkrantz continue to be extremely challenging. Our management and staff however have risen to these challenges as we look to the opening of our new mines in the area.” “With Vanggatfontein having reached steady state and generating the anticipated results, the Xceed acquisition having been completed allowing for Vanggatfontein to be expanded significantly, Vaalkrantz’s difficult mining conditions being managed and our internal project pipeline reaching development readiness, we are poised for the next phase of value growth for our shareholders.” The above information has not been reported on or reviewed by the company’s auditors. Bryanston 9 April 2014 Sponsor Nedbank Capital Date: 09/04/2014 07:05:00 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.