Integrated water use license granted for Moabsvelden KEATON ENERGY HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number 2006/011090/06) JSE code: KEH ISIN: ZAE000117420 ("Keaton Energy" or "the company") INTEGRATED WATER USE LICENSE GRANTED FOR MOABSVELDEN Keaton Energy is pleased to announce that its Moabsvelden Project has been granted an Integrated Water Use Licence by the Department of Water and Sanitation. The Moabsvelden Project is now fully permitted, having already been awarded its Mining Right and environmental authorisation in terms of the National Environmental Management Act. Moabsvelden is adjacent to Keaton’s existing successful, long-life Vanggatfontein Colliery and will benefit from shared infrastructure and reduced operating costs. It is envisaged that some 4Mt/year of coal will be produced from the combined operation. Mandi Glad, Keaton CEO, said “We are pleased that the Integrated Water Use Licence has been awarded. We can now finalise offtake negotiations with the various parties who expressed an interest in purchasing coal from Moabsvelden. This in turn will allow the washing plant configuration to be finalised and funding for the development to be closed.” Johannesburg 05 October 2016 Sponsor Investec Bank Limited Date: 05/10/2016 09:00:00 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.