Wescoal reports Elandspruit developments on track 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 ELANDSPRUIT DEVELOPMENTS ON TRACK Further to SENS announcements released on 9th July and 29th July and 10th September 2015, Wescoal the mining and trading group wishes to update shareholders regarding developments at its flagship Elandspruit project in Mpumalanga. Wescoal is pleased to report that the Elandspruit project ramp-up is on track and on budget. Since the granting of its water-use license at the end of March 2015, the Elandspruit project has steadily progressed to soon reach its planned production rate of 170 000 tons run of mine per month. Elandspruit run of mine has been successfully transported and fed into the nearby Wescoal Processing Plant since July. The plant has responded as expected and beneficiated product has met expectations. Wescoal acting CEO Waheed Sulaiman commented: “The mining team has performed exceptionally well, given current challenges in the industry and the fact that the project has to date been funded from operating cash flows. The ramp up period has been well managed and run of mine production has increased steadily since July. The Elandspruit project is living up to expectations of being a catalyst for Wescoal’s growth and we are on track to reach our target of 170 000 run of mine tons per month well before the end of the calendar year.” Salient features and timetable of Elandspruit’s development progress include the following; - Water-use license granted on 28 March 2015; - Mine design completed and preferred service providers identified at the end of May 2015; - Commencement of site establishment activities and first blast at the end of June 2015; - First coal removed from box cut and delivered to a dedicated run of mine stockpile on 15 July 2015. Elandspruit run of mine was subsequently successfully transported and beneficiated at the nearby Wescoal Processing Plant; - Approximately 43 000 tons of run of mine produced during the first month of production; - First coal from Elandspruit delivered at the end of July 2015 to non-Eskom customers; - During August Elandspruit produced approximately 83 000 tons of run of mine which was then successfully beneficiated at the Wescoal Processing Plant; and - During the first week of September 2015 Wescoal concluded a coal supply agreement with Eskom to supply a total of 221 000 tons during September and October 2015. Isando 16 September 2015 Nedbank CIB Sponsor Investor Relations Advisor Jacques de Bie Tel: 082 691 5384 Date: 16/09/2015 10:00:00 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.