Vele Integrated Water Use Licence Granted (2118E)

TIDMCZA

RNS Number : 2118E

Coal of Africa Limited

04 April 2011

ANNOUNCEMENT 4 APRIL 2011

VELE INTEGRATED WATER USE LICENSE GRANTED

Coal of Africa Limited ("CoAL" or the "Company") is pleased to advise that the integrated water use licence for the Company's Vele Colliery has been granted by the South African Department of Water Affairs. The application was lodged on 1 November 2009, and CoAL has since been in constant interaction with Government officials in order to progress its approval. The Company has undergone an intensive application process, including public participation meetings, to meet all the legislative requirements pursuant to the South African National Environmental Management Amendment Act, 1998 (Act No. 107 of 1998).

John Wallington, CoAL's Chief Executive Officer, commented: "Coal of Africa welcomes the decision to grant the licence. The Company is acutely aware of the sensitivity of the area and the significant responsibilities the approval brings."

As previously announced, the rectification process relating to the compliance notice issued with respect to the Vele Colliery continues and any development in this regard will be announced in due course.

JOHN WALLINGTON

Chief Executive Officer

For more information contact:

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

Wayne Koonin Finance Director Coal of Africa +27 11 575 4363

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

Melanie de Nysschen/ Annerie Britz/ JSE Sponsor Macquarie +27 11 583 2000

Yvette Labuschagne

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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