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 In accordance with JSE listing requirements, shareholders are referred to the announcement dated 31 October 2014 (“the 31 October Announcement”) and are advised of the following: 1. The Eskom Project As set out in the September 2014 Quarterly Report, (and released to the market on 31 October 2014) discussions with Eskom remain 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 seeks to resolve all outstanding requirements early in 2015. 2. The Convertible Secured Facility (“Facility”) As set out in the 31 October Announcement, the Facility has been extended on an on-demand basis. The revised balance of the Facility as at 17 October 2014, including accumulated interest, is A$39.3m. 3. The Export Project - Definitive Feasibility Study (“DFS”) As previously advised in the September 2014 Quarterly Report, Ardbel were commissioned to produce a DFS on the viability of a standalone Export Project to be located in the south of the Waterberg Coal Project (“WCP”) area. Stage I of the Export Project anticipates the build up to 2 million tonnes per annum of export product; with first coal to be produced during the 1st quarter 2016. The DFS on the Export Project has been drafted and is currently the subject of review. A proposed Stage II anticipates the build-up of export coal product to approximately 4 million tonnes per annum by 2022. The abbreviated period to complete this study accrues from the significant database and work product that was generated from the Eskom Project DFS. Additional work has been carried out with respect to logistics (including rail), coal product off-take arrangements and water. Notwithstanding the compilation of the DFS, the project team in conjunction with ARDBEL continue to look at opportunities for “optimisation” with a view to further enhancing the overall projects bankability and projects economics. With a draft of the DFS for a stand-alone Export Project on hand; the WCP partners are in discussions with certain Banks with respect to funding arrangements for the proposed Export Project development. Pursuant to the aforementioned discussions, the Snowden Group has been commissioned as Independent Technical Experts to produce a due diligence report for the purposes of Bank funding for the project’s development. 4. Further cautionary announcements 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 12 December 2014 JSE Sponsor The Standard Bank of South Africa Limited 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: 12/12/2014 01:00:00 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.