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

Integrated water use licence granted for the Makhado Project suspended

 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                                                                                 8 April 2016


INTEGRATED WATER USE LICENCE GRANTED FOR THE MAKHADO PROJECT SUSPENDED


Coal of Africa Limited (“CoAL” or the” Company”) advises that the Integrated Water Use Licence (“IWUL”) for
its Makhado Project has been suspended following an appeal to the Department of Water and Sanitation (“the
Department”) submitted by the Vhembe Mineral Resources Forum and other parties.

The appeal automatically suspends the IWUL in terms of Section 148 (2) (b) of the South African National
Water Act No 36 of 1998.

This appeal has been anticipated, and CoAL is in the process of preparing an urgent representation to the
Minster of Water and Sanitation to request that the IWUL remain in full force and effect pending the final
conclusion of the appeal by the Water Tribunal.


CoAL CEO David Brown commented, “We are actively engaging with the Department to resolve this
appropriately.


“We remain committed to the sustainable development of the Makhado Project, whilst recognising its potential
to drive significant socio-economic transformation. We will continue to engage with all stakeholders to ensure
the on-going implementation of our co-existent model, seeking co-operation between mining, agriculture and
heritage land uses.”


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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