Vaalkrantz Colliery on care and maintenance Keaton Energy Holdings Limited (Incorporated in the Republic of South Africa) (Registration number 2006/011090/06) JSE code: KEH ISIN code: ZAE000117420 ('Keaton' or the ‘Company’) KEATON PLACING ITS WHOLLY OWNED SUBSIDIARY, LEEUW MINING AND EXPLORATION (PROPRIETARY) LIMITED’S (LME) VAALKRANTZ COLLIERY ON CARE AND MAINTENANCE WITH EFFECT FROM 1 MAY 2016 The Company refers all shareholders to the entering into of the Sale of Shares and Claims Agreement with Bayete Energy Resources (Proprietary) Limited (“BER”) on or about 11 February 2016 as announced on 15 February 2016. There are still a number of suspensive conditions which have to be met for the sale to become effective, including Section 11 consent from the Minister of Mineral Resources in terms of the Mineral Petroleum and Resources Development Act, 28 of 2002 (“MPRDA”). The Company also simultaneously entered into a management agreement with Witbank Mineral Resources (Proprietary) Limited (“WMR”), a related party to BER for the management of LME up to and until the Sale of Shares and Claims Agreement with BER becomes unconditional. Notwithstanding continuous efforts by both LME and WMR to minimise losses exacerbated by the ongoing global decline in coal prices, force majeure declared on LME by its biggest customer and the unavailability of water due to the continued drought in the region, LME and WMR jointly decided to place Vaalkrantz Colliery on care and maintenance with effect from 1 May 2016. LME has embarked on a Section 189A process for the retrenchment of all employees and is currently in consultation with all relevant stakeholders. Johannesburg 29 April 2016 Sponsor Investec Bank Limited Date: 29/04/2016 05:45:00 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.