Integrated Water Use Licence Granted For Vele Colliery MC Mining Limited Previously Coal of Africa Limited (Incorporated and registered in Australia) Registration number ABN 008 905 388 ISIN AU000000MCM9 JSE share code: MCZ ASX/AIM code: MCM ANNOUNCEMENT 13 February 2018 INTEGRATED WATER USE LICENCE GRANTED FOR VELE COLLIERY MC Mining Limited (“MCM” or the “Company”) is pleased to announce that the South African Department of Water and Sanitation has granted an Integrated Water Use Licence in terms of the National Water Act (Act 36 of 1998) for the Vele Colliery’s stream diversion and associated infrastructural activities. This approval completes the full regulatory suite of all authorisations required for the Vele Colliery. As previously advised, the final decision on whether to proceed with the Plant Modification Project will be placed before the Company’s Board, which will include an assessment of long term pricing as well as logistics considerations. The Board will evaluate all options available, which will be communicated at the appropriate time. Mr David Brown, Chief Executive Officer, commented: “We welcome this decision and the securing of all the regulatory authorisations for the Colliery. Furthermore, this decision is a confirmation of government’s support of the Company’s co-existence model which facilitates the co-existence of mining, agriculture and heritage land uses in line with the historic biodiversity offset agreement between the Department of Environmental Affairs, the South African National Parks and MCM.” Authorised by David Brown Chief Executive Officer For more information contact: David Brown Chief Executive MC Mining Limited +27 10 003 8000 Officer Tony Bevan Company Secretary Endeavour Corporate +61 08 9316 Services 9100 Company advisors: Jos Simson/Barney Financial PR Tavistock +44 20 7920 Hayward/ Annabel de (United Kingdom) 3150 Morgan Ross Allister/Richard Nominated Adviser Peel Hunt LLP +44 20 7418 Crichton/James and Broker 8900 Bavister Charmane Russell/Olwen Financial PR Russell & Associates +27 11 880 3924 Auret (South Africa) or +27 82 372 5816 Investec Bank Limited is the nominated JSE Sponsor About MC Mining Limited: MC Mining Limited (MCM) is an AIM/ASX/JSE listed coal exploration, development and mining company operating in South Africa. MCM’s key projects include the Uitkomst Colliery (metallurgical coal), Makhado Project (coking and thermal coal). Vele Colliery (coking and thermal coal), and the Greater Soutpansberg Projects (MbeuYashu). Forward-Looking Statements This Announcement, including information included or incorporated by reference in this Announcement, may contain "forward-looking statements" concerning MC Mining Limited (MCM) that are subject to risks and uncertainties. Generally, the words "will", "may", "should", "continue", "believes", "expects", "intends", "anticipates" or similar expressions identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond MCM’s ability to control or estimate precisely, such as future market conditions, changes in regulatory environment and the behaviour of other market participants. MCM cannot give any assurance that such forward-looking statements will prove to have been correct. The reader is cautioned not to place undue reliance on these forward looking statements. MCM assumes no obligation and do not undertake any obligation to update or revise publicly any of the forward-looking statements set out herein, whether as a result of new information, future events or otherwise, except to the extent legally required. Statements of intention Statements of intention are statements of current intentions only, which may change as new information becomes available or circumstances change. Date: 13/02/2018 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.