Admission to Trading on AIM

10 June 2010

NCONDEZI COAL COMPANY LIMITED

("Ncondezi" or the "Company")

Admission to Trading on AIM

£35.6m (US$52m) fundraising

Highlights

· Admission to AIMwith a market capitalisation of £146.6million

· Placing of 28,956,454new shares at 123p each to raise £35.6 million (US$52 million)

· Proceeds to beused to fund further exploration and a fast-track bankable feasibility study at theNcondezi Project and working capital needs of the Company

Ncondezi Coal Company Limited (AIM:NCCL), a coalexploration and development company with assets in the Tete Province in Mozambique,Southern Africa, announces its admission to trading on AIM and the commencement ofdealings in its shares on AIM at 8.00 am today and the successful completion of aplacing (the "Placing") which raised gross proceeds of £35.6 million (US$52 million)for the Company, before expenses.

Pursuant to the Placing, the Company has issued28,956,454 million new shares of no par value ("Ordinary Shares") at 123 penceeach (the "Placing Price") to a broad base of institutional and other investors.Based on the Placing Price, the market capitalisation of Ncondezi immediately followingcompletion of the Placing and the Admission to AIM will be approximately £146 million.

Liberum Capital Limited is the Nominated Adviserto the Company. Liberum Capital Limited and Renaissance Capital Limited are JointBookrunner and Joint Broker to the Company.

Overview of Ncondezi

Ncondezi is a British Virgin Islands registeredcompany that holds 4 prospecting and exploration licences in the Tete Province ofWestern Mozambique, which is regarded to be one of the world's last remaining undevelopedcoking and thermal coal basins. Following earlier exploration, the Company has defineda JORC 1.8 billion tonne coal resource at the Ncondezi Project which comprises twoof its licences (804L and 805L).

The Company plans to further explore these licenceareas to increase its overall coal resource, upgrade the current JORC resource, andultimately to develop mining operations producing thermal and, potentially, cokingcoal. Further test work is required to confirm this potential. SRK, on behalf ofNcondezi, recently completed a Scoping Study on the Ncondezi Project, which confirmedthe economic and technical viability of a 37 year open pit mine, producing 10 milliontonnes per annum of export quality thermal coal, commencing in the second half of2014.

The Company's assets are located in the Zambezicoal basin in the Tete Province of north-western Mozambique. The primary market forNcondezi's export thermal coal is expected to be India. Several international mining,steel and energy companies are making major investments to develop coal resourcesand reserves in Mozambique for the purpose of supplying international markets. Inparticular, the region's infrastructure is also receiving substantial investment,associated with developments by Vale and Riversdale at their respective Moatize andBenga coal projects which are expected to start production in late 2011.

The Company intends to utilise the proceeds ofthe Placing to conduct further exploration work and a fast-track bankable feasibility study, to be completed in the second half of 2012, whichwill encompass further drilling and evaluation of the Ncondezi Project. Social andenvironmental studies will also be undertaken in order to advance the Ncondezi Projecttowards production.

Further details about the Company can be foundon the Company's website: www.ncondezicoal.com

 Graham Mascall,CEO of Ncondezi Coal Company Limited, commented:

"We are delighted that the Company's sharescommenced trading on AIM. The Company's main objective is to upgrade and extendthe existing JORC resource and to complete a fast-track bankable feasibility studyon the Ncondezi Project. We also aim to carry out further test work in order toassess the potential for coking coal.

The Ncondezi Project presents an exciting opportunityto develop a new coal mine in one of the world's largest underdeveloped coal regions. Work to date has already defined a JORC resource of 1.8 billion tonnes. We areexcited about the potential for upgrading existing resources as well as the potentialfor coking coal."

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