Long-term coal supply agreement secured for Elandspruit Colliery WESCOAL HOLDINGS LIMITED Incorporated in the Republic of South Africa (Registration number 2005/006913/06) Share code: WSL ISIN: ZAE000069639 (“Wescoal” or "the Group") Long-term coal supply agreement secured for Elandspruit Colliery Shareholders are referred to prior SENS announcements, most recently on 2 June 2016 wherein Wescoal indicated that it was in discussions with Eskom to finalise a long-term coal supply agreement linked to its flagship Elandspruit colliery. The Elandspruit colliery, which produced first coal in July 2015, has effectively been supplying coal to Eskom through short-term contracts since September 2015 while the long-term coal supply agreement was being finalised. Wescoal is very pleased to announce today, that it has successfully concluded these negotiations and a long-term coal supply agreement (“CSA”) has been signed with Eskom Holdings SOC Limited. The terms of the CSA inter alia include: - In order to ensure uninterrupted coal supply, the commencement date will be 1 November 2016, at the conclusion of Wescoal’s current short-term coal supply contract with Eskom. The CSA has a five year duration which allows Wescoal to enter into long-term projects with certainty around cash flows. - Some 7.8 million tons of coal beneficiated at Wescoal’s Processing Plant will be delivered to Eskom during the life of the CSA. - Wescoal is obliged to transform its BEE ownership to more than 50 percent by end December 2016 and is well advanced in achieving this strategic goal. - Wescoal needs to comply with all regulatory and licensing requirements during the life of the contract. The current water use license at Wescoal’s Processing Plant expires in March 2017. Wescoal has submitted documents to the relevant authorities in support of ensuring that the renewed water use license is in place timeously. Waheed Sulaiman, CEO of Wescoal said: “This brings to fruition a major project for the Wescoal team. This long-term position significantly de-risks future cash flows and in the short to medium term enables us to repeat the results achieved during the second half of FY16”. 17 August 2016 Sponsor Nedbank Corporate and Investment Banking Date: 17/08/2016 10:48:00 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.