COAL OF AFRICA LIMITED - Makhado Project Empowerment Structuring Completed

Makhado Project Empowerment Structuring Completed

Coal of Africa Limited
(Incorporated and registered in Australia)
Registration number ABN 008 905 388
ISIN AU000000CZA6
JSE/ASX/AIM share code: CZA
("CoAL or the "Company" or the "Group")



ANNOUNCEMENT                                                                      13 March 2015

Makhado Project Empowerment Structuring Completed

Coal of Africa Limited (“CoAL” or the “Company") is pleased to announce that it has concluded agreements
with broad based black economic empowerment (“BBBEE”) partners for their acquisition of 26 per cent of the
Makhado hard coking and thermal coal project (the “Makhado Project”) (the “Transaction”). Conclusion of the
Transaction, which is subject to the conditions set out below, will ensure the Makhado Project complies with
mining legislation in South Africa and satisfies one of the last remaining requirements for the granting of a
New Order Mining Right.

The Transaction results in the Makhado Colliery Community Development Trust (the “Trust”), representing
seven local communities living in the vicinity of the proposed colliery, acquiring 20 per cent of the Makhado
Project. The broad base of the Trust’s beneficiaries ensures that the Makhado Project will significantly benefit
local communities. A further 6 per cent has been acquired by Yoright Investments (Pty) Ltd (“Yoright”) a
company formed by black entrepreneur Mike Nkuna whose shareholder grouping will include Historically
Disadvantaged South Africans and other black entrepreneurs, further expanding the BBBEE shareholding in
the project. The Transaction will result in the Trust owning 20 per cent, Yoright 6 per cent and CoAL 74 per
cent of Baobab Mining & Exploration (Pty) Ltd, the entity that will implement the Makhado Project.

The Transaction is conditional on inter alia Section 11 approval from the Department of Mineral Resources.
The Trust and Yoright have to raise sufficient funding within two years, or such date agreed between the
parties. The final amount payable is subject to due diligence and will be negotiated with the Company
following these processes.

Commenting today CoAL CEO David Brown stated:

“The acquisition of 26 per cent of the Makhado Project by BBBEE parties is a critical step to obtaining the
Makhado Project mining right. Furthermore the transaction reaffirms CoAL’s commitment to empowerment
and Yoright together with the communities in the vicinity of the project stand to gain significant benefits over
the life of the project. The Makhado colliery will be the first of its type in the Soutpansberg and the Company
anticipates that the relevant regulatory approvals will be granted in due course.”



AUTHORISED BY:
Tony Bevan
Company Secretary



For more information contact:
David Brown                                          Chief Executive Officer                     Coal of Africa                                +27 10 003 8000
Michael Meeser                                       Chief Financial Officer                     Coal of Africa                                +27 10 003 8000
Celeste Harris                                       Investor Relations                          Coal of Africa                                +27 10 003 8000
Tony Bevan                                           Company Secretary                           Endeavour Corporate Services                  +61 08 9316 9100

Company advisors:
Jos Simson/Emily Fenton                              Financial PR (United Kingdom)               Tavistock                                   +44 20 7920 3150
Chris Sim/George Price/Jeremy Ellis                  Nominated Adviser                           Investec Bank plc                           +44 20 7597 5970
Charmane Russell/Jane Kamau                          Financial PR (South Africa)                 Russell & Associates                        +27 11 880 3924 or
                                                                                                                                             +27 82 372 5816
Investec Bank Limited is the nominated JSE Sponsor

Additional Information
The Makhado Project is not in production and therefore has no turnover or profits and as at 31 December 2014, was carried at $58,151,398 on the
Company’s Condensed Consolidated Statement of Financial Position.
About CoAL:
CoAL is an AIM/ASX/JSE listed coal exploration, development and mining company operating in South Africa. CoAL’s key projects include the Vele
Colliery (coking and thermal coal), the Greater Soutpansberg Project /MbeuYashu, including CoAL’s Makhado Project (coking and thermal coal).

AU: Coal of Africa Limited, Suite 8, 7 The Esplanade, Mount Pleasant, Perth WA 6153, Australia, Tel: +61 8 9316 9100, Fax: +61 8 9316 5475
ZA: South Block, Summercon Office Park, Cnr Rockery Lane and Sunset Avenue, Lonehill, 2191, Tel: +27 10 003 8000 Fax: +27 11 388 8333 Email: adminza@coalofafrica.com

Bernard R. Pryor – Chairman, David H. Brown – Chief Executive Officer , Michael G. Meeser – Chief Financial Officer
Non-executive directors: Peter G. Cordin, Andrew D Mifflin, Khomotso B. Mosehla ,Thabo F Mosololi, Rudolph H. Torlage

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