COAL OF AFRICA LIMITED - Integrated water use licence granted for the Makhado Project

Integrated water use licence granted for the Makhado Project

 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                                                                       14 JANUARY 2016




            INTEGRATED WATER USE LICENCE GRANTED FOR THE MAKHADO PROJECT


Coal of Africa Limited (“CoAL” or the” Company”) is pleased to advise that the Integrated Water Use Licence
(“IWUL”) for its Makhado Project has been granted by the Department of Water and Sanitation (“DWS”) for a
period of 20 years.


CoAL completed a Class II Definitive Feasibility Study on the Makhado Project during 2013 and anticipates
developing the colliery to produce 2.3 million tonnes per annum (Mtpa) of hard coking coal and a further 3.2
Mtpa of thermal coal over the life of mine. Tests confirmed that the coal can be successfully beneficiated to
produce high strength coke for the steel manufacturing industry.


David Brown commented, “The granting of the IWUL for the Makhado Project is a significant milestone for
CoAL, and is a further step towards bringing the Makhado Project into production.           It further signifies
government’s commitment to and support of our flagship project, and its potential to foster socio economic
transformation not only for the communities in our area of operation, but also for the Limpopo Province.


“We continue to focus on our funding requirements in order to commence construction activities in H2 2016.”




AUTHORISED BY:


David Brown
For more information contact:
David Brown                                                    Chief Executive Officer                              Coal of Africa                  +27 10 003 8000
De Wet Schutte                                                 Chief Financial Officer                              Coal of Africa                  +27 10 003 8000
Celeste Riekert                                                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
Matthew Armitt/Ross Allister                                   Nominated Adviser and Broker                         Peel Hunt LLP                  +44 20 7418 8900


Charmane Russell/Olwen Auret                                   Financial PR (South Africa)                          Russell & Associates           +27 11 880 3924 or
                                                                                                                                                   +27 82 372 5816
Investec Bank Limited is the nominated JSE Sponsor


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,
Non-executive directors: Peter G. Cordin, Andrew D Mifflin, Khomotso B. Mosehla ,Thabo F Mosololi, Rudolph H. Torlage

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