Conversion of Options (1217D)

TIDMCZA

RNS Number : 1217D

Coal of Africa Limited

18 March 2011

-ANNOUNCEMENT 18 MARCH 2011

CONVERSION OF OPTIONS AND SECONDARY TRADING NOTICE

Coal of Africa Limited ('CoAL' or the 'Company') confirms it has today issued 124,998 ordinary shares pursuant to the exercise of Class A Options at an exercise price of 50 cents per share ("Shares").

Application has been made for the 124,998 Shares to be admitted to trading on the London Stock Exchange's AIM market for listed securities ("Admission"). Admission is expected to become effective on 23 March 2011. The Shares will rank pari passu with the Company's existing Ordinary Shares.

Following the admission of the Shares, the number of Ordinary Shares on issue will be 530,639,661.

Secondary Trading Notice Pursuant to Paragraph 708A(5)(e) of the Corporations Act 2001 ("Act")

The Act restricts the on-sale of securities issued without disclosure, unless the sale is exempt under section 708 or 708A of the Act. By giving this notice, a sale of the Shares noted above will fall within the exemption in section 708A(5) of the Act.

The Company hereby notifies ASX under paragraph 708A(5)(e) of the Act that:

(a) the Company issued the Shares without disclosure to investors under Part 6D.2 of the Act;

(b) as at 18 March 2011, the Company has complied with the provisions of Chapter 2M of the Act (other than section 319 in relation to a financial year ended in the calendar year 2004) as they apply to the Company, and section 674 of the Act; and

a. that has been excluded from a continuous disclosure notice in accordance with the ASX Listing Rules; and

b. that investors and their professional advisers would reasonably require for the purpose of making an informed assessment of:

i. the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; or

ii. the rights and liabilities attaching to the relevant Shares.

AUTHORISED BY:

Shannon Coates

Company Secretary

For more information contact:

John Wallington Chief Executive Officer Coal of Africa +27 11 575 7423

Blair Sergeant Finance Director Coal of Africa +61 893 226 776

Shannon Coates Company Secretary Coal of Africa +61 893 226 776

Chris Sim Nominated Adviser Evolution Securities +44 20 7071 4300

Jos Simson/Emily Fenton Financial PR Tavistock +44 207 920 3150

www.coalofafrica.com

About CoAL:

CoAL is an AIM/ASX/JSE listed coal mining and development company operating in South Africa. CoAL's key projects include the Woestalleen Colliery, the Mooiplaats thermal coal mine, the Vele coking coal project and the Makhado coking coal project.

The Mooiplaats coal mine commenced production in 2008 and is currently ramping up to produce 2 million tonnes per annum ("Mtpa"). CoAL's Makhado coking coal project is expected to start production in 2013 and timing for Vele to reach production is still to be confirmed. These operations are targeted to collectively produce an initial 2Mtpa ramping up to a combined annual output of 10Mtpa of coking coal.

In 2010, CoAL completed the ZAR467m acquisition of NuCoal Mining (Pty) Limited ("NuCoal"), a thermal coal producer with assets in South Africa in close proximity to CoAL's Mooiplaats mine. NuCoal owns the Woestalleen Colliery, which has a number of off-take contracts in place and processes approximately 2.5Mtpa of saleable coal for domestic and export markets. NuCoal also owns two beneficiation plants, one fully operational mine producing approximately 300kt per month of ROM coal and has recently commenced production at a second mine.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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