MCM.L Regulatory News (MCM)

Wednesday 16 June 2010

THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, CANADA, JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL

COAL OF AFRICA LIMITED ("CoAL" or the "Company")

Result of Placing

Further to the announcement earlier today, CoAL is pleased to announce that 50 million new ordinary shares in the Company (the "Placing Shares") have been successfully placed by J.P. Morgan Securities Ltd., which conducts its UK investment banking activities as J.P. Morgan Cazenove ("J.P. Morgan Cazenove"), Macquarie First South Advisers (Proprietary) Limited ("Macquarie"), Evolution Securities Limited ("Evolution"), and Mirabaud Securities LLP ("Mirabaud") as Managers, and Renaissance Capital Limited ("Renaissance") as Institutional Selling Agent, to institutional and other investors.

The placing price has been set at 110 pence per share (or 12.38 South African Rand, or 1.88 Australian Dollar). The placing price is equivalent to a 0.2% discount to the closing mid-market price on the AIM market of the London Stock Exchange ("AIM") on 15 June 2010. Accordingly, the Placing will raise gross proceeds of approximately £55 million (approximately South African Rand 619 million/ Australian Dollar 94 million). The Placing Shares represent approximately 10.4% of CoAL's issued share capital prior to the Placing.

The Placing Shares will be credited as fully paid and will rank pari passu in all respects with the existing ordinary shares of CoAL including the right to receive all dividends and other distributions declared, made or paid after the date of issue.

The Company has applied for admission of the Placing Shares to trading on AIM and the Main Board of JSE Limited ("JSE"), and application will be made to the Australian Securities Exchange ("ASX"). It is expected that admission to trading on AIM and the main board of the Johannesburg Stock Exchange will take place on 21 June 2010 and listing on the Australian Stock Exchange take place on 22 June 2010.

Contacts

This Announcement has been issued by and is the sole responsibility of the Company. No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by J.P. Morgan Cazenove, Macquarie, Evolution, Mirabaud or Renaissance or by any of their respective affiliates or agents as to or in relation to, the accuracy or completeness of this Announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.

J.P. Morgan Cazenove is acting as Global Co-ordinator and Sole Bookrunner, Macquarie is acting as joint lead manager, Evolution and Mirabaud Securities LLP are acting as co-lead managers in connection with the Placing. Renaissance is also acting for the Company as Institutional Selling Agent. J.P. Morgan Cazenove, Evolution, Mirabaud and Renaissance, which are authorised and regulated by the Financial Services Authority and Macquarie which are authorised and regulated by the Financial Services Board in South Africa, are acting for the Company in connection with the Placing and no-one else and none of J.P. Morgan Cazenove, Macquarie, Evolution, Mirabaud nor Renaissance will be responsible to anyone other than the Company for providing the protections afforded to the respective clients of J.P. Morgan Cazenove, Macquarie, Evolution, Mirabaud and Renaissance nor for providing advice in relation to the Placing or any other matter referred to herein.

The distribution of this Announcement and the Placing of the Placing Shares in certain jurisdictions may be restricted by law. No action has been taken by the Company, J.P. Morgan Cazenove, Macquarie, Evolution, Mirabaud or Renaissance that would permit an offering of such shares or possession or distribution of this Announcement or any other offering or publicity material relating to such shares in any jurisdiction where action for that purpose is required. Persons into whose possession this Announcement comes are required by the Company, J.P. Morgan Cazenove, Macquarie, Evolution, Mirabaud and Renaissance to inform themselves about, and to observe, such restrictions.

The information in this press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would require preparation of further prospectuses or other offer documentation, or be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction.

No public offer of securities of the Company is being made in Australia, the United Kingdom, the United States, the Republic of South Africa or elsewhere. The information in this press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933 (the "Securities Act"). The securities mentioned herein may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act. There will be no public offer of securities in the United States.

The information in this press release may not be forwarded or distributed to any other person and may not be reproduced in any manner whatsoever. Any forwarding, distribution, reproduction, or disclosure of this information in whole or in part is unauthorised. Failure to comply with this directive may result in a violation of the Securities Act or the applicable laws of other jurisdictions.