Resignation of Director

ANNOUNCEMENT 16 AUGUST 2010

RESIGNATION OF DIRECTOR

Further to his resignation from ArcelorMittal SA, Coal of Africa Limited ("CoAL" or "the Company") confirms that Mr Hendrik ("Kobus") Verster, ArcelorMittal's nominee non-executive Director, has resigned from the Board of CoAL, effective 13 August 2010.

The Company will advise of the appointment of any replacement ArcelorMittal nominee director in due course.

Mr Verster's Appendix 3Z "Director's Final Interest Notice" follows.

Yours sincerely

JOHN WALLINGTON

Chief Executive Officer

Contacts

CoAL

John Wallington Tel: +27 (0) 11 459 2840

Blair Sergeant

Evolution Securities

Simon Edwards Tel: +44 (0) 20 7071 4300

Chris Sim

Conduit PR

Jos Simson Tel: +44 (0) 20 7429 6603

Leesa Peters

Macquarie First South Advisers

Melanie de Nysschen Tel: +27 (0) 11 583 2000

About CoAL

CoAL is an AIM/ASX/JSE listed coal mining and development company operating in South Africa. CoAL's key projects include the Woestalleen Colliery, the Mooiplaats thermal coal mine, the Vele coking coal project and the Makhado coking coal project.

The Mooiplaats coal mine commenced production in 2008 and is currently ramping up to produce 2 million tonnes per annum ("Mtpa"). CoAL's Vele and Makhado coking coal projects are expected to start production in Q3 2010 and 2012 respectively, collectively producing an initial 2 Mtpa rising to a combined annual output of 10 Mtpa of coking coal.

In 2010, CoAL completed the ZAR467m acquisition of NuCoal Mining (Pty) Limited ("NuCoal"), a thermal coal producer with assets in South Africa in close proximity to CoAL's Mooiplaats mine. NuCoal owns the Woestalleen Colliery, which has a number of off-take contracts in place and processes approximately 2.5Mtpa of saleable coal for domestic and export markets. NuCoal also owns two beneficiation plants, one fully operational mine producing approximately 300kt per month of ROM coal and has recently commenced production at a second mine.

 CoAL currently has 1 Mtpa export capacity at the Matola Terminal in Maputo, Mozambique, increasing to 3 Mtpa on completion of the next phase of expansion at the terminal. CoAL also has the option to participate in further expansion at the Matola Terminal, which is expected to increase the capacity at the terminal by an additional 10 Mtpa.