Sable Mining Africa Regulatory News (SBLM)

Sable Mining Africa Ltd/ Index: AIM / Epic: SBLM / Sector: Natural Resources

27 September 2010

Sable Mining Africa Limited ('Sable Mining' or 'the Company')

Rietkuil Coal Project Update

Sable Mining, the AIM listed resource company, is pleased to announce a positive update on Delta Mining Consolidated Limited's ('DMC') Rietkuil Coal Project ('Rietkuil') in South Africa, which has a SAMREC compliant gross in-situ tonnage resource of 199.9 million tonnes (156.9Mt in the Measured and 42Mt in an Indicated categories). The Project is adjacent to Exxaro Resources Limited's Leeuwpan Colliery and Kuyasa Mining (Pty) Limited's Delmas Colliery situated in the Mpumalanga Province.

·; The Bankable Feasibility Study ('BFS') remains on target to be completed by December 2010.

·; DMC has appointed SRK Consulting Engineers as the Independent Technical Engineer ('ITE') to act as the 'independent engineer' for the project and the proposed mandated financial institutions, during the finalisation of the BFS for Rietkuil.

·; DMC is currently in negotiations with two of South Africa's largest financial institutions to act as the lead arrangers for debt financing of Rietkuil. The final details of the debt arrangement will be finalised upon completion of the BFS.

·; A market study for Rietkuil has reinforced DMC's view that off-take agreements can be secured for coal products. DMC has a Letter of Intent from Arcelor Mittal with regard to potential off-take, which is subject to a bulk sample. Further agreements with other off-takers are also in the pipeline.

·; Export allocation through the Richards Bay Coal Terminal is limited, so in order to get allocation in the expansions, DMC has applied for Quattro allocation. This will enable DMC to export coal to international markets at competitive rates.

·; The optimal designs of the Coal Handling and Processing Plant by Sedgman Ltd are approaching finality and are based on best practice with regard to Rietkuil's coal quality data. This will optimise the yield for the various saleable products.

Sable Mining CEO Andrew Groves said, "This is positive news from DMC with regards to Rietkuil. With the BFS on track for completion by the end of the year, we are committed to expedite the project into operation to reap the benefit of a strong and positive cash flow."

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