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Mineral Resources and Ore Reserves Update
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")
1 February 2016
Coal of Africa Limited
Mineral Resources and Ore Reserves Update
Key Highlights
Makhado Project Resource and Reserve Update
- Coal Resources and Ore Reserves completed for Makhado:
- Measured, Indicated and Inferred Mineral Resource of 796Mt (Gross Tonnes in Situ)
- Probable Ore Reserve estimate of 188 Mt (Mineable Tonnes in Situ)
- All Coal Resources and Reserves reported in this Announcement are identical to 27 June 2013 estimations,
which were reported in accordance with the JORC Code (2004 Edition).
- The estimation of the Makhado Mineral Resources and Ore Reserves was completed by The MSA Group (Pty)
Ltd (MSA).
Vele Colliery Resource and Reserve Update
- Coal Resources and Ore Reserves completed for the Vele:
- Measured, Indicated and Inferred Mineral Resource of 794Mt
- Proven Ore Reserve estimate of 24Mt and Probable Ore Reserve estimate of 301 Mt
- Variation between the 2012 Coal Resource and Reserve statements (which were reported in accordance with
the JORC Code (2004 Edition) and the Coal Resource and Reserve statements in this Announcement (which
were reported in accordance with the JORC Code (2012 Edition) is the result of depletion that occurred during
the operational period of Vele Colliery.
- The estimation of the Vele Colliery Mineral Resources and Ore Reserves was completed by VBKom Consulting
(Pty) Ltd (VBKom).
Greater Soutpansberg Project (GSP) Resource Update
- Coal Resources completed for the GSP:
- Measured, Indicated and Inferred Mineral Resource of 7,161Mt (Gross Tonnes In Situ)
- No changes have been made to the GSP Coal Resources since the 29 February 2012 statement, which was
compiled in accordance with the JORC Code (2004 Edition)
- The estimation of the GSP Coal Resources on 29 February 2012 were independently signed off by Glanvill
GeoConsulting (Pty) Ltd (Liz de Klerk), Group Geologist of CoAL (John Sparrow) and Venmyn Rand (Pty) Ltd.
- The updated 31 December 2015 Coal Resources in this Announcement have been presented by Venmyn
Deloitte (Pty) Ltd (Venmyn Deloitte).
OVERVIEW
On 21 December 2015, Coal of Africa Limited (ASX: CZA) (CoAL or Company) announced that it had lodged an offer
document in relation to its offer to acquire the entire issued and to be issued share capital of Universal (the Offer),
with the Australian Securities and Investments Commission. Under the terms of the Offer, CoAL is offering to
acquire each Universal Share held, subject to eligibility, for A$0.20 in cash and 1 New CoAL Share or a non-
converting, secured Loan Note with a principal amount of A$0.25 per Loan Note (the Acquisition).
The Acquisition, constitutes a reverse takeover for CoAL under the AIM Rules for Companies (AIM Rules) and in
fulfilment one of the conditions precedent of the Acquisition CoAL will be releasing an admission document
(Admission Document) and seeking shareholder approval for the Acquisition at a general meeting. The Company
anticipates that the Admission Document will be published on 1 February 2016 and posted to shareholders on 2
February 2016.
The Admission Document necessitated the preparation of independent competent person's reports in relation to
each of CoAL and Universal’s material projects and as a result, the Company’s Mineral Resources and Ore Reserves
for its material projects (Makhado Project, Vele Colliery and GSP), have been updated from the Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2004 Edition (JORC 2004) to Mineral
Resources and Ore Reserves reported in accordance with the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves, 2012 Edition (JORC 2012), necessitating the need for this
Announcement. The Abridged versions of the competent person’s reports will be included in the Admission
Document with full and unadjusted versions of the competent person’s reports. The reports are available on the
Company’s website (www.coalofafrica.com) and this Announcement should be read in conjunction with those
reports.
Enquiries:
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:
Matthew Armitt/Ross Allister Nominated Adviser and Peel Hunt LLP +44 20 7418 8900
Broker
Jos Simson/Emily Fenton Financial PR (United Tavistock +44 20 7920 3150
Kingdom)
Charmane Russell/Jane Kamau Financial PR (South Africa) Russell & Associates +27 11 880 3924 or
+27 82 372 5816
Robert Smith/ Tanya Cesare Nominated JSE Sponsor Investec Bank +2711 286 7000
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, including CoAL’s Makhado Project (coking and thermal coal).
Competent Person’s Statements
Makhado Project - Mineral Resources and Ore Reserves
Mr Philip Mostert and Mr André Johannes van der Merwe, confirm that they are the Competent Persons for the Makhado Project Mineral
Resources and Ore Reserves summarised in this Report and have read and understood the requirements of the 2012 Edition of the
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 Edition). Mr Philip Mostert
and Mr André Johannes van der Merwe are both Competent Persons as defined by the JORC Code, 2012 Edition, having more than five years’
experience that is relevant to the style of mineralisation and type of deposit described in the Report and to the activity for which he is
accepting responsibility. Mr Philip Mostert is a Registered Professional Natural Scientist (Pr.Sci.Nat No. 400442/11) with The South African
Council for Natural Scientific Professions and a Member of the Geological Society of South Africa (both being a Recognised Professional
Organisation included in a list posted on the ASX website from time to time). Mr André Johannes van der Merwe is a Member of the
Australasian Institute of Mining and Metallurgy, a Fellow of the Geological Society of South Africa and a Registered Professional Natural
Scientist (Pr.Sci.Nat No. 400329/04) with The South African Council for Natural Scientific Professions (with the latter two organisations both
being a Recognised Professional Organisation included in a list posted on the ASX website from time to time). Mr Philip Mostert and Mr
André Johannes van der Merwe have reviewed the Report to which this Consent Statement applies. Mr Philip Mostert and Mr André Johannes
van der Merwe are both full time employees of MSA Group (Pty) Ltd. Mr Philip Mostert and Mr André Johannes van der Merwe verify that
the Makhado Project Mineral Resources and Ore Reserves section of this Report is based on and fairly and accurately reflects in the form and
context in which it appears, the information in their supporting documentation relating to the Makhado Project Mineral Resources and Ore
Reserves.
Vele Colliery - Mineral Resources and Ore Reserves
Mr Brendan Botha and Mr Ben Bruwer, confirm that they are the Competent Persons for the Vele Colliery Mineral Resources and Ore
Reserves summarised in this Report and have read and understood the requirements of the 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 Edition). Mr Brendan Botha and Mr Ben Bruwer are
both Competent Persons as defined by the JORC Code, 2012 Edition, having more than five years’ experience that is relevant to the style of
mineralisation and type of deposit described in the Report and to the activity for which he is accepting responsibility. Mr Botha is a registered
Professional Natural Scientist with the South African Council for Natural Scientific Professions (being a Recognised Professional Organisation
included in a list posted on the ASX website from time to time). Mr Ben Bruwer is a Member of the South African Institute of Mining and
Metallurgy (being a Recognised Professional Organisation included in a list posted on the ASX website from time to time). Mr Brendan Botha
and Mr Ben Bruwer have reviewed the Report to which this Consent Statement applies. Mr Brendan Botha and Mr Ben Bruwer are both full
time employees of VBKom Consulting (Pty) Ltd. Mr Brendan Botha and Mr Ben Bruwer verify that the Vele Colliery Mineral Resources and
Ore Reserves section of this Report is based on and fairly and accurately reflects in the form and context in which it appears, the information
in their supporting documentation relating to the Vele Colliery Mineral Resources and Ore Reserves.
Greater Soutpansberg Project - Mineral Resources
Mrs Liz de Klerk and Ms Tarryn Claire Orford, confirm that they are the Venmyn Deloitte Competent Persons responsible for compilation of
the 2015 Greater Soutpansberg Project independent Competent Persons Report and that they have read and understood the requirements
of the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012
Edition). The 2015 GSP Coal Resources are summarised in this Report The 31 December 2015 Coal Resources have not changed since last
reported on 29 February 2012 when Mrs Liz de Klerk was an independent contractor working under Glanvill GeoConsulting. Mrs Liz de Klerk
and Ms Tarryn Claire Orford are both Competent Persons as defined by the JORC Code, 2012 Edition, having more than five years’ experience
that is relevant to the style of mineralisation and type of deposit described in the Report and to the activity for which they are accepting
responsibility. Mrs Liz de Klerk is a Fellow of the Geological Society of South Africa, a member of the South African Institute for Mining and
Metallurgy and is a Professional Natural Scientist of the South African Council for Natural Scientific Professions a (all being a Recognised
Professional Organisation included in a list posted on the ASX website from time to time). Ms Tarryn Claire Orford is a Member of the
Geological Society of South Africa, South African Institute for Mining and Metallurgy and is a Professional Natural Scientist of the South
African Council for Natural Scientific Professions (all being a Recognised Professional Organisations included in a list posted on the ASX
website from time to time). Mrs Liz de Klerk and Ms Tarryn Claire Orford have reviewed the Report to which this Consent Statement applies.
Mrs Liz de Klerk and Ms Tarryn Claire Orford are both full time employees of Venmyn Deloitte (Pty) Ltd. Mr Brendan Botha and Mr Ben
Bruwer verify that the Greater Soutpansberg Project Mineral Resources section of this Report is based on and fairly and accurately reflects
in the form and context in which it appears, the information in their supporting documentation relating to the Greater Soutpansberg Project
Mineral Resources.
Forward-Looking Statements
This Announcement, including information included or incorporated by reference in this Announcement, may contain "forward-looking
statements" concerning CoAL that are subject to risks and uncertainties. Generally, the words "will", "may", "should", "continue", "believes",
"expects", "intends", "anticipates" or similar expressions identify forward-looking statements. These forward-looking statements involve
risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of
these risks and uncertainties relate to factors that are beyond CoAL’s ability to control or estimate precisely, such as future market conditions,
changes in regulatory environment and the behaviour of other market participants. CoAL cannot give any assurance that such forward-
looking statements will prove to have been correct. The reader is cautioned not to place undue reliance on these forward looking statements.
CoAL assumes no obligation and does not undertake any obligation to update or revise publicly any of the forward-looking statements set
out herein, whether as a result of new information, future events or otherwise, except to the extent legally required.
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