COAL OF AFRICA LIMITED - M&G Share Placement

M&G Share Placement

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")


M&G Share Placement


Coal of Africa Limited (“CoAL” or the “Company”), the coal exploration and project development company
operating in South Africa, and traded on the ASX, AIM and the JSE, is pleased to announce the successful
completion of a share placement to M&G Investment Management Limited (“M&G”).


An amount of 49,007,596 ordinary shares (the “Placement Shares”) will be issued to M&G, at a price of 4.081
US cents per share, in terms of the subscription agreement entered into between the Company and M&G to
raise US$2 million (the “Placement”). The subscription proceeds amount will be used for working capital
purposes.

The issue of the Placement Shares does not require CoAL shareholder approval or any other consents or
approval.

Application has been made for the Placement Shares to be admitted to trading on the AIM market of the London
Stock Exchange ("AIM"). Admission to trading on AIM is expected to become effective on or around 6 February
2017. The Placement Shares will rank pari passu with the Company's existing ordinary shares of nil par value.
Application for quotation of the Placement Shares will also be made to the Australian Securities Exchange and
the Main Board of the JSE Limited.

Following admission of the Placement Shares there will be 1,976,008,924 shares on issue. This figure may be
used by shareholders in the Company as the denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change in their interest in, the share capital of the Company
under the FCA's Disclosure Guidance and Transparency Rules.



David Brown, Chief Executive Officer of CoAL, commented:
“The M&G placement once again confirms the support from our large shareholders and provides the Company
with additional financial capacity to fund our working capital requirements. We remain committed to creating
shareholder wealth by continuing to complete our turnaround strategy, a potential acquisition of a cash
generator and ultimately the development of our flagship project – the Makhado Mine.”
                 
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, De Wet O Schutte
Non-executive directors: Peter G. Cordin, Andrew D Mifflin, Khomotso B. Mosehla ,Thabo F Mosololi, Rudolph H. Torlage, Shangren Ding

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:
Matthew Armitt/Ross Allister            Nominated Adviser and Broker      Peel Hunt LLP                     +44 20 7418 8900

Jos Simson/Emily Fenton                 Financial PR (United Kingdom)     Tavistock                         +44 20 7920 3150
Charmane Russell/Olwen Auret            Financial PR (South               Russell & Associates              +27 11 880 3924 or
                                        Africa)                                                             +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).


01 February 2017




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