Wescoal's Khanyisa Complex delivers first coal WESCOAL HOLDINGS LIMITED Incorporated in the Republic of South Africa (Registration number 2005/006913/06) Share code: WSL ISIN: ZAE000069639 (“Wescoal” or "the Company") Wescoal‘s Khanyisa Complex delivers first coal Wescoal’s voluntary strategic and operational SENS update on 12th January 2017 indicated that production from Khanyisa Colliery is subject to regulatory consents from the Department of Mineral Resources. The Company is pleased to announce that these consents have been granted. Mining activities have commenced in the Khanyisa “Catwalk” as well as the adjacent Khanyisa “Triangle” areas near Ogies in Mpumalanga (collectively the Khanyisa complex”). This is a significant milestone in the Company’s expansion programme. Production from the enlarged Khanyisa complex will ramp up to 100,000 ROM tons per month over the next six months. Khanyisa Catwalk is wholly owned by Wescoal while Khanyisa Triangle is 100% owned by Aztolinx (Pty) Limited (“Aztolinx”), an incorporated joint venture vehicle in which Wescoal owns 35%. The Aztolinx initiative is 85% black owned and is in line with Wescoal’s commitment to transformation and empowerment. Wescoal CEO, Waheed Sulaiman says significant operational synergies between the two operations will be unlocked, allowing the Khanyisa complex to be mined more efficiently while extending the mine life to more than five years. Mining activities will be managed by Wescoal with a ROM production target of 100,000 tons per month within six months. Crushing and screening activities have been contracted to Mwelase Mining (Pty) Limited, a 100% black owned company. Aztolinx will oversee marketing initiatives. Short-term off-take agreements have been put in place while longer term contracts are being negotiated with various parties. The Khanyisa complex is close to both Kendal and Kusile power stations, as well as Kendal siding and the Richards Bay export rail network. These factors, coupled with the majority black ownership component, augurs well for securing favourable long term coal supply contracts in various markets including Eskom, the non-Eskom domestic and export coal markets. Management’s priorities remain to strive for safe and reliable operations, solid and predictable financial performances, re-alignment of the trading business to Wescoal’s needs and to maximise value from the existing asset base. Planning and executing projects in a conservative, risk-based manner will continue to form the basis on which Wescoal will manage and realise value from its growth plans. Wescoal remains an active participant in the consolidation of the domestic junior coal mining sector with respect to reviewing value enhancing opportunities. Johannesburg 24 May 2017 Sponsor Nedbank Corporate and Investment Banking IR Advisor Singular Systems IR Date: 24/05/2017 02:39:00 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.