Mc Mining Regulatory News (MCM)

ANNOUNCEMENT 2 July 2015

Mooiplaats update

Further to the announcements of 6 November 2014, 17 December 2014, 30 January 2015 and 5 May 2015, regarding the finalisation of a sale and purchase agreement ("SPA") with Blackspear Capital ("Blackspear") for the disposal of the Mooiplaats Colliery for R250 million and the subsequent extension of the SPA until 30 June 2015, Coal of Africa Limited ("CoAL" or the "Company") announces that the SPA will not be extended further and therefore will lapse.

The Company is continuing discussions with various parties regarding the sale of the Mooiplaats asset. Blackspear, with whom the original SPA was signed, is one of the parties that the Company is engaged with, and it continues to work towards sourcing the required funding. CoAL will continue to update the market as and when it is appropriate.

It should be noted that the company completed the equity raise referred to in the notice of 2 June 2015

David Brown

Chief Executive Officer

For more information contact:

Company advisors:

Investec Bank Limited is the nominated JSE Sponsor

About CoAL:

CoAL is an AIM/ASX/JSE listed coal exploration, development and mining company operating in South Africa. CoAL's key projects include the Vele Colliery (coking and thermal coal), the Greater Soutpansberg Project /MbeuYashu, including CoAL's Makhado Project (coking and thermal coal).