Acquisition of a mining right for Intibane Phase 2 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”) THE ACQUISITION OF A MINING RIGHT FOR INTIBANE PHASE 2 1. INTRODUCTION Wescoal Mining (Pty) Ltd (“Wescoal Mining”), a wholly owned subsidiary of Wescoal, entered into an agreement with Mintirho Mining (Pty) Ltd (“Mintirho Mining) (“the Seller”) on 6 August 2014 to purchase a Mining Right (“Intibane Phase 2”) from Mintirho Mining (“the acquisition”). 2. RATIONALE FOR ACQUISITION The acquisition of Intibane Phase 2, which is adjacent to Wescoal’s current Intibane Colliery, will enable Wescoal to extend the life of Intibane by a further 2.25 million tons and life of mine to the end of 2016. The current Intibane mine infrastructure will be used to mine the reserve. 3. THE MINING RIGHT “The Mining Area” comprises the area described as Portion 2 of the farm Vlakvarkfontein 213 IR measuring 170,1362 hectares in extent, situated in the Magisterial District of Delmas, Mpumalanga, South Africa. “The Mining Right” means the right to mine for coal in, on and under the Mining Area, held by Mintirho with reference number MP30/5/1/2/2/476MR to be registered in the Mining Titles Office in respect of coal in, on and under the Mining Area, which Mining Right is to be transferred from Mintirho to Wescoal Mining. 4. TERMS AND CONDITIONS OF THE ACQUISITION 4.1 Wescoal Mining entered into an agreement to purchase the Mining Right from the Seller for a cash payment of R7. 98 million inclusive of VAT. 4.2 The acquisition is subject to the fulfilment of inter alia the following conditions precedent : 4.2.1 by no later than 30 September 2014, the approval of the Environmental Management Programme by the Minister and the execution of the Notarial Contract pertaining thereto; and 4.2.2 by no later than 31 October 2014, the approval by the Minister of the unconditional transfer of the Mining Right by Mintirho to Wescoal Mining. 5. PRO FORMA FINANCIAL EFFECTS OF THE ACQUISITION The pro forma financial effect of the acquisition on the earnings, headline earnings, net assets and net tangible assets per share of Wescoal are below 3% and are considered insignificant. 6. CATEGORISATION OF THE ACQUISITION This announcement is a voluntary announcement and does not fall within the categories defined by the JSE Listings Requirements. Sponsor to Wescoal Legal Adviser to Wescoal Exchange Sponsors KWA Attorneys 7 August 2014 Johannesburg Date: 07/08/2014 12:41:00 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.