MCM.L Regulatory News (MCM)

28 Apr 2008 10:05

Coal of Africa Limited28 April 2008 Coal of Africa Limited ("CoAL" or (the "Company") Price Query As a result of a letter dated 23 April 2008 received from the AustralianSecurities Exchange ("ASX") in response to the Company's announcement of 17April 2008 relating to a price query, the Company has today made a furtherresponse to the ASX. The response states, in summary, that the announcement in relation to theplacement and off-take agreement with ArcelorMittal made on 21 April 2008 wasonly made at the first opportunity that negotiations with ArcelorMIttal werecompleted and a formal and legally binding agreement was finalised. It alsoconfirms that any negotiations with various organisations going on prior to thistime were not concluded which meant an announcement would not be required. TheCompany also states that it does not believe the previous movement in the shareprice was due to confidentiality in relation to negotiations with ArcelorMIttalbeing lost. The response also notes that the movement in the Company's shareprice could have been as a result of a number of factors including marketspeculation regarding certain organisations seeking to acquire an interest inthe Company and recent contract negotiations being completed at prices more than200% of last year's contract prices. A link to the full correspondence can be found on the ASX website at http://www.asx.com.au/asx/statistics/announcementSearch.do?method=searchByCode&issuerCode=cza&timeFrameSearchType=D&releasedDuringCode=W Enquiries: Simon Farrell, Managing Director CZA +61 417 985 383 Jos Simson/ Arabella Hobbs Conduit PR +44(0)20 7429 6603 Olly Cairns Blue Oar Securities Plc +61 8 6430 1631 Romil Patel Blue Oar Securities Plc +44(0) 20 7448 4400 This information is provided by RNS The company news service from the London Stock Exchange