Business Update and Further Cautionary Announcement The Waterberg Coal Company Limited (Incorporated in Australia) (Registration number ABN 64 065 480 453) ASX: WCC | JSE: WCC | ISIN: AU000000WCC9 (“WCC” or “the Company”) BUSINESS UPDATE AND FURTHER CAUTIONARY ANNOUNCEMENT Shareholders are referred to the announcement dated 16 September 2014 (“the 16 September Announcement”) and are advised of the following: 1. The Eskom Project As set out in the 16 September Announcement, discussions with Eskom are ongoing to resolve the outstanding requirements in order to advance the Coal Supply Agreement (“CSA”) discussions. These outstanding requirements include coal specification finalisation, final pricing, delivery dates and the provision to Eskom of a satisfactory due diligence report on the DFS. The discussions with Eskom are regular and ongoing and WCC anticipates resolving all outstanding requirements early in 2015. 2. The Convertible Secured Facility (“Facility”) On 9 April 2013, WCC drew down on the Facility, with a face value of A$35 million, from a syndicate of Lenders with The Standard Bank of South Africa Limited (“Standard Bank”) as facility agent (the “Lenders”). As set out in the 16 September Announcement, WCC had entered into discussions with the Lenders with respect to the restructuring of the Facility; including an extension to the Facility’s maturity date. Shareholders are advised that the Facility matured on 9 October 2014 and in terms of the agreement between the Lenders and WCC, has been extended on an on-demand basis. A portion of capital owing under the Facility, amounting to A$4.3m, was repaid to the Lenders by WCC. The revised balance of the Facility as at 17 October 2014, including accumulated interest, is A$39.3m. 3. The Export Project The definitive feasibility study for the stand alone export project has been commissioned with Snowden Group and it is expected to be completed by the middle of December 2014. Discussions in relation to separate funding options for the stand alone export project which will include the retirement of the Facility are taking place and a further announcement in this regard will be made contemporaneously with the completion of the definitive feasibility study. The company is in negotiations with the relevant authorities at Transnet Freight Rail and expect to reach a satisfactory agreement during November 2014 to convey the export product from the Waterberg to Richards Bay Coal Terminal. In addition, the company is in advanced discussions with a number of prospective purchasers of the export product and a further announcement in this regard will be made before the end of November 2014. 4. Further cautionary announcement Shareholders are advised to continue to exercise caution when trading in the Company’s securities until further announcements in regard to the above is made. Stephen Miller Director The Waterberg Coal Company Limited 31st October 2014 JSE Sponsor The Standard Bank of South Africa Limited Market Release 31st October 2014 THE WATERBERG COAL COMPANY LIMITED ABN 64 065 480 453 Registered office: Level 2, 1 Walker Avenue West Perth, Western Australia 6005 Australia Tel:+61 8 9485 0888 Fax: +61 8 9485 0077 South African office: Level 1, The Place, 1 Sandton Dr Sandton, 2146 South Africa Tel: +27 10 594 2240 Fax: +27 10 594 2253 Contact: Mr Stephen Miller Executive Director/CEO Or Investor relations in South Africa: Bruce Tinney +27 (83) 408 3028 E-mail: info@waterbergcoal.com.au Directors: Dr Mathews Phosa (Chairman) Stephen Miller (Executive Director and CEO) Lee Boyd (Director and Company Secretary) Date: 31/10/2014 12:10:00 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.