Production report for year ending 31 March 2016 KEATON ENERGY HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number 2006/011090/06) JSE share code: KEH ISIN: ZAE000117420 (“Keaton Energy” or “the Company”) Production report for year ending 31 March 2016 Keaton Energy has released the following production update for the financial year ended 31 March 2016 ahead of the release in June 2016 of the company’s year-end results. The Lost Time Injury Frequency Rate (per 200 000 hours worked) for the year was 0.14 at Vanggatfontein (2015: 0.10) and 0.06 at Vaalkrantz (2015: 0.22). Management commends all for this achievement and their adherence to safety standards and protocols. Vanggatfontein, the company’s long-life open pit colliery near Delmas, sold 2 237 595t of washed 2- and 4-seam thermal coal to Eskom, only 2% down on last year’s record production of 2 278 761t. Sales of 5-seam metallurgical coal were 98 252t (2015: 126 107) in line with the geological model. Discard, slurry and B-grade sales were negligible. As has been announced previously, Vaalkrantz is now classified as an “asset held for sale”. Coal sales for the year were 5 556t Local Anthracite (2015: 142 176t), 70 600t Export Anthracite (2015:138 300t) and 185 799t 32%Ash (2015:114 974t). Mandi Glad, Keaton CEO, said “The 2016 year ended with Vanggatfontein again underpinning the company with excellent results which we have come to expect from this long-life quality asset. The Kwa-Zulu Natal anthracite operations are in the process of being sold. Both operations achieved commendable safety performances, which is extremely positive, and we look forward to an improved 2017.” The above information has not been reported on or reviewed by the Company’s auditors. Johannesburg 15 April 2016 Sponsor Investec Bank Limited Date: 15/04/2016 04:00:00 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.