COAL OF AFRICA LIMITED - Coal of Africa awards Optimisation Study and Front End Engineering and Design package to DRA

Coal of Africa awards Optimisation Study and Front End Engineering and Design package to DRA

 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")

JOINT
ANNOUNCEMENT

18 January 2016



 Coal of Africa awards Optimisation Study and Front End Engineering and Design package to
                                                 DRA

International engineer and project delivery group DRA Global has announced that its South African
company DRA Projects SA has been awarded the Optimisation Study and Front End Engineering and
Design (FEED) package for Coal of Africa Limited (CoAL) Makhado coal project.

The Makhado project is located in the Limpopo Province of South Africa, and is approximately 80 km
from CoAL’s existing Vele Colliery. It is planned that both hard coking coal and thermal coal will be
produced from the Makhado project for export and domestic consumption. Initially the operation will
be an opencast mine, with potential for expansion to an underground operation in future years.

DRA’s recent award follows its earlier role on the Makhado project for CoAL in the preparation of the
Definitive Feasibility Study of the coal processing and handling facilities, completed in early 2013.
The scope of the Optimisation and FEED assignment expands this earlier role by DRA to now include
the infrastructure components of the project, and also the integration of the work of a number of
specialist consultants.

Commenting on the award, Paul Thomson, DRA’s CEO, said: “It is especially pleasing to be awarded
this next phase of the investigation and development of the Makhado coal project.            Our early
interaction with CoAL began in 2010 with initial studies and the new award is testament to the sound
relationship established between our two organisations and our respective project teams.”

Thomson continues: “A key requirement of the Optimisation Study and FEED phase will be the
identification of appropriate cost reduction opportunities to help optimise the economics of the project
in the current challenging market. DRA and its key staff have had many years’ experience in the
design and delivery of “fit-for-purpose” yet high performance project in coal and other commodities.
We will apply this experience and skill fully to the Makhado project. We very much look forward to
continuing to work closely with CoAL through future phases of the project.”

CoAL’s current plan is that work on the Makhado site will begin during the second semester of 2016,
followed by a 26 month build programme with first coal produced during 2019.


David Brown, CEO of CoAL commented that: “We are pleased to have DRA on board during the next
phase of developing the Makhado Project. This is an exciting yet crucial phase of the project
development and being associated with DRA during this period will ensure a successful start to the
construction of the Makhado Project.


About DRA

DRA is a global multi-disciplinary engineering group which delivers mining, minerals processing and
infrastructure services from concept to commissioning in addition to comprehensive operations and
maintenance services. DRA has offices and operations in Africa, Australia, Canada, China, Europe,
India, and the USA. The DRA Group provides highly flexible services, allowing it to meet with needs
of multinational mining companies as well as junior and emerging producers. The company’s
expertise covers a wide range of commodities including coal, gold, PGMs, ferrous metals, diamonds,
graphite, uranium, base metals, mineral sands, fertilizer minerals and rare earths.

About CoAL:


Coal of Africa Limited (CoAL) is an emerging coal exploration, development and mining company
operating in South Africa. CoAL's key projects include the Vele Colliery (coking and thermal coal),
Makhado Project (coking and thermal coal) and the Greater Soutpansberg Project /MbeuYashu,


With good access to rail and port infrastructure, CoAL can effectively service domestic and
international markets; providing a much-needed resource for economic growth and development for
the country and the provinces in which we operate.


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

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