Wescoal reports first coal contracted to Eskom from its flagship Elandspruit project 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”) WESCOAL REPORTS FIRST COAL CONTRACTED TO ESKOM FROM ITS FLAGSHIP ELANDSPRUIT PROJECT Further to SENS announcements released on 9th July and 29th July 2015, Wescoal the mining and trading group wishes to update shareholders regarding developments at its flagship Elandspruit project in Mpumalanga. The Company is pleased to report that it has signed a short term contract [STC] with Eskom to supply a total of 221 000 tons of coal from its Elandspruit operations which comprise of the Elandspruit colliery and nearby Wescoal Processing Plant. This follows on STCs signed in the last week of May 2015 for the supply of 190 000 tons of coal from its Khanyisa and Intibane mines. The conclusion of an Eskom contract for Elandspruit heralds an upturn in mining activity and revenues going forward after delays in finalising Eskom coal supply agreements. Management’s strategy of operating the Wescoal Processing Plant on a marginal profit basis, with feed sourced from other producers has meant that the plant is primed and ready to operate at its current capacity of more than 150 000 feed tons per month. Elandspruit’s run of mine will be trucked 20km to the processing plant where it will be beneficiated to meet Eskom’s quality requirements. Acting CEO Waheed Sulaiman said; “Getting to this point is a major milestone and has been achieved through hard work and perseverance. Longer than expected delays earlier this year, resulted in us having to enter into sub-optimal coal sale arrangements with other customers while we engaged with Eskom. Signing the long-term Eskom contract for Elandspruit is now at the top of our priority list, after which we will focus on Intibane and Khanyisa.” Sulaiman concluded; “Wescoal has traditionally delivered stronger results in the first half of its financial year, but this year will see a reversal of that trend as we close out our current Eskom negotiations and continue to grow the business.” The above information has not been reported on or reviewed by the Company’s auditors. Isando 10 September 2015 Nedbank CIB Sponsor Investor Relations Advisor Jacques de Bie Tel: 082 691 5384 Date: 10/09/2015 09:00:00 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.