Wescoal trading statement & voluntary strategic update WESCOAL HOLDINGS LIMITED Incorporated in the Republic of South Africa (Registration number 2005/006913/06) Share code: WSL ISIN: ZAE000069639 (“Wescoal” or “the Company” or "the Group") Wescoal Trading Statement & Voluntary Strategic Update Trading statement In terms of paragraph 3.4(b) of the JSE Limited Listings Requirements, companies are required to publish a trading statement as soon as they become reasonably certain that the financial results for the period to be reported on will differ by more than 20% from the previous corresponding period. Shareholders are advised that Wescoal is in the process of finalising its results for the year ended 31 March 2017. The Company now has clarity on the actual range of movement in financial results and anticipates that it will report the following: Headline earnings per share (HEPS) and earnings per share (EPS) before the impact of non-recurring costs and BEE share dilution of between 49.1 cents and 59.2 cents compared to reported HEPS and EPS of 27.1 cents and 26.2 cents respectively for the year ended 31 March 2016. Reported HEPS of between 10.4 cents and 12.4 cents (31 March 2016: 27.1 cents), being a decrease of between 54% and 62% to the prior comparative period. Reported EPS of between 10.7 cents and 12.8 cents (31 March 2016: 26.2 cents), being a decrease of between 51% and 59% to the prior comparative period. The significant increase in Group profitability driven by strong production from our flagship Elandspruit mine in steady state production was offset by the impact of non-recurring costs relating to the non-cash BEE discount of c. 32 cents per share resulting from our BEE transaction, the dilution impact of the BEE transaction’s increase in the number of issued shares of c. 7 cents per share as well the once off Keaton acquisition transaction costs of c. 3 cents per share. The financial information on which this trading statement is based has not been reviewed or reported on by Wescoal’s auditors. The Company’s financial results for the full year period ended 30 March 2017 are expected to be released on 28 June 2017. Shareholders are invited to join the annual results webcast at 11:00am on the day using the url: http://www.corpcam.com/Wescoal28062017. Further details are available from Jacques de Bie: Jdebie@singular.co.za or 082 691 5384. Voluntary Strategic Update Management’s top strategic priorities remain to grow the business, to strive for safe production, solid and predictable operational and financial performances. Planning and executing projects in a conservative, risk- based manner is how Wescoal will continue to manage and realise value from its growth plans. Wescoal remains intent on playing a significant and active role as a consolidator in the junior coal sector and will continue to consider value enhancing opportunities. The M&A strategy is focussed on acquiring additional resources and strategic interests in key logistics infrastructure. The acquisitive growth also brings revenue certainty and diversification through production of a range of coal qualities, mining and washing/processing options, customer and sales strategies across domestic and export markets, as well as diversification and optionality in contracts and off-take negotiations. The acquisition of Keaton Energy has passed shareholder and competition commission approval hurdles adding to the growth momentum of the Company. The companies will issue a joint announcement upon achieving more certainty around the date of fulfilment of the remaining scheme conditions pertaining to the implementation of the transaction. Mining activities commenced earlier in the year at Khanyisa and production at the “Khanyisa complex” is expected to ramp up to 100,000 ROM tons per month during the financial year to 31 March 2018. Operations at Elandspruit and Intibane are on track and in accordance with planned outcomes. Annual run of mine production from the Group exceeded 3.3 mt during FY17 and the enlarged group post the Keaton Energy acquisition will be on track to achieve an annual ROM production target of 8 million tons per annum in the short to medium term. Wescoal’s minimum 51% BEE ownership is a threshold which will be protected and maintained with transformation at the centre of the Company’s employment and ownership principles. A broad based ownership scheme is being designed for implementation during the financial year to 31 March 2018 and will enhance BEE ownership. Wescoal’s senior management team and skills have been strengthened over the past two years through key appointments in Finance, Legal/Company Secretarial, HR, New Business and more recently in Mining. It is also the company’s intention to consider implementing new and upgraded IT technology to be integrated across the enlarged organisation as part of its business optimisation and risk management programs. Wescoal’s Trading division restructure and right sizing process has resulted in a more robust trading business closely aligned with its Mining division. Sponsor Nedbank Corporate and Investment Banking IR Advisor Singular Systems IR 19 June 2017 Date: 19/06/2017 09:04:00 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.