The acquisition of a prospecting right for Khanyisa 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 PROSPECTING RIGHT FOR KHANYISA PHASE 2 1. INTRODUCTION Wescoal Mining (Pty) Ltd (“Wescoal Mining” or “the Purchaser”), a wholly owned subsidiary of Wescoal, is pleased to announce that it has concluded an agreement with Catwalk Investments (Pty) Ltd (“Catwalk”) on 18 November 2014 for the acquisition of the Sarie Marais Prospecting Right and the consent to undertake box cut mining, as described below, from Catwalk (“the acquisition”), subject to certain terms and conditions. 2. RATIONALE FOR THE ACQUISITION The acquisition is in line with Wescoal’s stated goals of extending the life of its current operations to 2016 and beyond. The Sarie Marais Prospecting Right is contiguous to Wescoal’s current Khanyisa operations and the existing box cuts allows seamless transition into the acquired area exposing higher grade and lower cost coal than current production. 3. THE SARIE MARAIS PROSPECTING RIGHT The Sarie Marais Prospecting Area comprises the Remaining Extent of Portion 19, Portions 9, 18,33,34,40,41,42,66, and Portions of Portion 96, 97, 99 and the Remaining Extent of the farm Heuvelfontein 215 IR, Mpumalanga Region, Mpumalanga Province, South Africa. The Sarie Marais Prospecting Right means the notarial prospecting right in respect of coal in, on and under the Sarie Marais Prospecting Area, held by Catwalk with reference number MP30/5/1/1/2/1500PR dated 12 September 2007, granted by the minister of Mineral Resources and registered in the Mining Titles Office on 2 October 2007 under MPT No. 50/2012. 4. TERMS AND CONDITIONS OF THE ACQUISITION 4.1 Wescoal Mining has purchased the Sarie Marais Prospecting Right from the Seller which has consented to Wescoal Mining undertaking box cut mining on the prospecting right and to use the existing box cuts. 4.2 The purchase price for the Sarie Marais Prospecting Right is R4 600 000 excluding VAT. 4.3 The consideration for the box cut consent is R10 000 000 excluding VAT. 4.4 The Seller has provided the Purchaser with warranties that are customary in transactions of this nature. 4.5 The acquisition is subject to the fulfilment of inter alia the condition precedent that the Minister consenting to the transfer of the Sarie Marais Prospecting Right by the Seller to the Purchaser in terms of Section 11 of the Mineral and Petroleum Resources Development Act, No 28 of 2002. 5. 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 Legal Advisors to Catwalk Exchange Sponsors KWA Attorneys Hogan Lovells (South Africa) 19 November 2014 Johannesburg Date: 19/11/2014 12:48:00 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.