Environmental Authorisation granted for Vele

Environmental Authorisation granted for Vele Colliery

Coal of Africa Limited ("CoAL" or "the Company") is pleased to announce that the South African Department of Mineral Resources ("DMR") has granted an Environmental Authorisation in terms of the National Environmental Management Act ("NEMA") (Act 107 of 1998) and the Environmental Impact Assessment Regulations (2014) for Vele Colliery for stream diversion and associated infrastructural activities.

CoAL awaits the approval of an Integrated Water Use Licence ("IWUL") from the Department of Water and Sanitation which is the final regulatory approval required for the stream diversion in respect of the Vele Plant Modification Project ("PMP").

Mr David Brown, Chief Executive Officer, commented, "We welcome this decision by the DMR, and look forward to the receipt of the IWUL. Upon receipt thereof, the final decision to proceed with the PMP will be placed before the board, which will include an assessment of forecast global coal prices.

"A new benchmark for co-existence between mining, agriculture and heritage land uses is being set at Vele, with the on-going implementation of the historic biodiversity offset agreement between the Department of Environmental Affairs, the South African National Parks and CoAL. This is evidenced through the company's continued engagement with various stakeholders including regulatory authorities, land owners, communities and advocacy groups through the Environmental Management Committee. We continue to engage with our stakeholders to optimise this co-operation framework, as we strive to maximise the benefits of mining for all our stakeholders, particularly our beneficiary communities."

Authorised by

David Brown

CEO

30 January 2017

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Company advisors:

Investec Bank Limited is the nominated JSE Sponsor

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 /MbeuYashu, including CoAL's Makhado Project (coking and thermal coal).