MCM.L Regulatory News (MCM)

 ANNOUNCEMENT 1 APRIL 2011

KEY APPOINTMENTS

Appointment of Financial Director

Subsequent to the appointment of Mr John Wallington as Chief Executive Officer in mid-June 2010, Coal of Africa Limited ("CoAL" or the "Company"), the AIM/ASX/JSE listed coal mining and development company operating in South Africa (ticker: CZA), continues to implement organisational changes that will transform it into a fully-fledged operating coal mining business.

CoAL is therefore pleased to announce that it has appointed Mr Wayne Koonin as Financial Director, effective 1 April 2011. Mr Koonin qualified as a Chartered Accountant (South Africa) in 1997 and holds a Bachelor of Commerce (Accounting) and a Bachelor of Accounting (Honours) degree, both from the University of the Witwatersrand in South Africa.

Over the past 12 years, Mr Koonin has gained extensive international experience working in senior financial roles for Canadian, South African, British and Swiss based exploration, development and operating mining companies, covering a variety of commodities, including coal. As a result, he has had exposure to various international accounting standards, taxation and regulatory environments, as well as responsibility for entities listed on the JSE Limited ("JSE"), Australian Securities Exchange ("ASX"), Financial Times Stock Exchange ("FTSE"), Alternative Investment Market ("AIM") and National Association of Securities Dealers Automated Quotations ("NASDAQ").

In addition to his extensive financial and management experience on an international level, his successes include managing the turnaround of various mining businesses, implementing various financial and operational systems, capital raising and debt financing exercises, multiple corporate finance transactions and a JSE listing. Mr Koonin has most recently been the Chief Financial Officer of Platmin Limited, a platinum mining company listed on the Toronto Stock Exchange ("TSX"), AIM and JSE.

As part of his package, and subject to shareholder approval, Mr. Koonin will be entitled to receive CoAL shares, as detailed in Annexure A below.

Appointment of Managing Director of Lemur Resources Limited

To coincide with the appointment of Mr Koonin as Finance Director, the Company's current Finance Director Mr. Blair Sergeant has resigned, effective 1 April 2011. This follows the relocation of his family back to Perth, Australia, after a three year secondment to CoAL's offices in Johannesburg, South Africa.

Mr Sergeant will continue to be involved with the Company through his appointment as Managing Director of Lemur Resources Limited, which aims to develop a Madagascan coal asset in which CoAL has a major shareholding. Mr Sergeant will remain on hand until the end of April 2011 to assist with handover of responsibilities to Mr Koonin and in order to complete certain tasks. The Board extends its gratitude to Mr Sergeant for his contribution over the last three years.

As part of the Company's re-organisation, Mr Simon Farrell, Deputy Chairman, will move to a non-executive role on the CoAL Board, with effect from 1 April 2011. Mr Farrell will now concentrate on a co-coordinating role for the Tshipise Energy Project (a Gas Joint Venture Project in which CoAL has a 50% interest) and the proposed Limpopo Major Industrial Complex Project, which is conceptually exploring the formation of an appropriate structure between the South African Government and industry that would drive the development of downstream beneficiation projects relating to power, synfuel and steel manufacture. The Company believes these projects could have significant potential for the Limpopo Province, in particular, and South Africa in general.

Richard Linnell

Chairman

Disclosure of Directorships under Schedule 2(g) of the AIM Rules

There is no other information that is required to be disclosed with regards to the above mentioned appointment pursuant to Schedule 2 paragraph (g) of the AIM Rules, save as set out below:

Full Name: Mr Wayne Gregory Koonin

Age: 41 years

Mr Sergeant's Appendix 3Z "Director's Final Interest Notice" follows. Mr Koonin's Appendix 3X "Director's Initial Interest Notice" will be provided in due course.

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

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

Yvette Labuschagne

www.coalofafrica.com

ANNEXURE A

As part of his package, and subject to shareholder approval, Mr. Koonin will be entitled to receive the following issues of the Company's shares, the final allocation of the second, third, fourth and fifth tranches of which will be calculated according to the conditions set out below:

o 175,000 shares following 12 months service;

o up to 350,000 shares following 24 months service;

o up to 350,000 shares following 36 months service;

o up to 350,000 shares following 48 months service;

o up to 350,000 shares following 60 months service.

The allocation of the above mentioned shares is subject to the following capital performance conditions:

o an international investment bank will be requested to provide a list of six peer group companies at the start of each 12 month service period;

o the average share price growth over the ensuing 12 months for these peers will be calculated and used as the base measure to determine the Finance Director's share allocation;

o the percentage allocation of CoAL shares to the Finance Director will be calculated using the CoAL share price weighted average for the month preceding the end of the 12 month period: