Default on Subscription Agreement 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 22 October 2020 DEFAULT ON SUBSCRIPTION AGREEMENT MC Mining Limited (“MC Mining” or the “Company”) on 4 September 2020 announced the conclusion of a Subscription Agreement (the "Agreement”) with Columbia Skies Holdings Proprietary Limited (“CSH”), which is wholly-owned by Mr. Pitso Madibo, a South African industrialist. The Agreement provided for CSH to subscribe for 7,831,785 ordinary MC Mining shares (the “CSH Shares”), conditional only upon South African Reserve Bank (“SARB”) approval. SARB approval was duly received and Mr. Madibo was notified in accordance with the terms of the Agreement. MC Mining regrets to report that CSH has not paid the subscription price of approximately R10 million ($0.6 million) for the CSH Shares as provided for in the Agreement. Both CSH and Mr. Madibo were issued with a material default notice but did not remedy the default within the prescribed period. The Company continues its discussions with various potential funders in respect of the balance of the financing required for the development of Phase 1 of its flagship Makhado hard coking coal project and general working capital requirements. A further announcement will be made in due course. Brenda Berlin, MC Mining’s Acting CEO, commented: “MC Mining is very disappointed that Mr. Madibo and his company have defaulted on the Agreement. We have taken legal advice in this regard and have reserved all our rights to enforce due performance by CSH and Mr. Madibo personally.” Brenda Berlin Acting Chief Executive Officer This announcement has been approved by the Company’s Disclosure Committee. This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014. * All figures are in South African rand or United States dollars unless otherwise stated. For more information contact: Brenda Berlin Acting Chief Executive MC Mining Limited +27 10 003 8000 Officer Tony Bevan Company Secretary Endeavour Corporate +61 08 9316 9100 Services Company advisors: James Harris / James Dance Nominated Adviser Strand Hanson Limited +44 20 7409 3494 Rory Scott Broker (AIM) Mirabaud Securities Limited +44 20 3167 7220 James Duncan Financial PR (South R&A Strategic +27 11 880 3924 Africa) Communications Investec Bank Limited is the nominated JSE Sponsor About MC Mining Limited: MC Mining is an AIM/ASX/JSE-listed coal exploration, development and mining company operating in South Africa. MC Mining’s key projects include the Uitkomst Colliery (metallurgical coal), Makhado Project (hard coking coal), Vele Colliery (semi-soft coking coal) and the Greater Soutpansberg Projects (coking and thermal coal). Date: 22-10-2020 12:30:00 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.