BHE confirms receipt of FIRB approval

ANNOUNCEMENT 28 November 2012

Beijing Haohua Energy Resource Co. confirms receipt of

Foreign Investment Review Board approval

Further to the announcement of 1 October 2012, Coal of Africa Limited ("the Company" or "CoAL") is pleased to announce that Haohua Energy International (Hong Kong) Co. Limited ("HEI"), a wholly owned subsidiary of Beijing Haohua Energy Resource Co. Limited ("BHE"), has notified CoAL that it has received approval from the Australian Foreign Investment Review Board ("FIRB") for its equity investment in the Company.

Following the granting of FIRB approval, HEI and CoAL will execute an escrow release letter pursuant to which the deposit of US$20 million currently held in the escrow account will be transferred to CoAL. This amount will be applied toward the subscription for new shares in CoAL ("Initial Placement") at either £0.25 or £0.35 per share to be issued three days after the earlier of the date on which certain regulatory approvals are obtained or 31 January 2013 (or such later date as agreed by the parties).

Authorised by

JOHN WALLINGTON

Chief Executive Officer

28 November 2012

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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, including CoAL's Makhado Project (coking coal) and the Mooiplaats and Woestalleen Collieries (both thermal coal).